Let’s say you built a super expensive, fancy-schmancy custom one-of-a-kind house on a spectacular view lot and had a bunch of designers each decorate a different room in the place to make it Extra Super Mega Special. Then you ran a charity fundraiser by calling it a Designer Showcase and listed the place for $45 million. And of course you list it with Sotheby’s.
And yet, let’s say this drop-dead-gorgeous spec palace did not find a buyer for $45 million (or, we assume, anywhere near that vicinity) when it was first listed this February. What do you do?
You could cut the price ten million or so. And it looks like that was tried as well, as the most recent price last week is $35.88M. And yet, the house is still sitting there, all lonely on its double lot and intense blue skies obtained with the finest Photoshop filters. What’s the next step to avoiding serious financial fail?
In this case, the solution (or at least the next attempt at avoiding a catastrophe) is to put the house up for auction. The starting price will be $25 million. At least one website actually states this is going to result in the home selling for last February’s price.
Alas, we missed the preview yesterday afternoon. But the auction will be on December 30th, giving you plenty of time to contact the right people and get yourself in on the fun.
Click the image at right to see the home’s brochure and many more pictures in tones of sapphire and sunset. You can also drool all over the home’s website if the brochure isn’t enough house porn for you.
So, is the market bubble over already, or did the home builders simply overreach with a $45 million ask? What do you expect the place to fetch at auction? Is the opening $25 million minimum sufficient to move this mess?