Mansion May Fetch Record Amount at Auction

August 11, 2011

A Malibu, Calif., mansion that once was on the market for $65 million will soon hit the auction block with the bidding starting at $22 million, which could mark a new record. 

“The $22 million starting bid coupled with the fact that the original listing price was $65 million makes this the highest-priced home ever go to auction,” says Tony Fitzgerald, a broker with Premiere Estates Auction Co., which will be assisting with the auction. The winning bidder stands to walk away with quite a bargain, too: The property could sell for as much as 66 percent off the original asking price, experts say. 

The auction is slated for Sept. 18, assuming no interested buyer steps forward before then with an offer. 

This is a less traditional route for selling a luxury home that is neither in foreclosure or default, but the buyer has been trying to sell the property since 2008 and is motivated to finally get it sold, Fitzgerald says. 

The home owner William J. Chadwick, a managing director of Chadwick Saylor & Co., asked $65 million for his 10,500-square foot Carbon Beach estate in Malibu in 2008. But the home failed to attract a buyer, even after several price cuts. The home boasts six bedrooms, nine-and-half bathrooms, a 90-foot-long great room, an oceanfront gym, a tequila tasting room, and a 4,500-square-foot oceanfront patio with an outdoor kitchen and 75-foot two-lane lap pool.

The home will be sold in a reserve auction, which means a financial minimum must be met for the property to be sold. Bidders will be vetted prior to the auction and must pay $150,000 to receive a bidder’s title. 

Source: “At Auction: A Real Sand Castle on ‘Billionaire Beach,” Forbes (Aug. 10, 2011)