More Ultra-Luxury Real Estate Hits the Auction Block

November 15, 2018

Real estate auctions have largely been considered an option for unloading foreclosures and distressed homes, but it’s becoming a growing option in the luxury market. The number of multimillion-dollar homes that have sold at auctions in the past year has nearly doubled, CNBC reports.

Luxury homes are hitting auction blocks

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What is the most expensive home on record to have hit the auction block? CNBC reports that Playa Vista Isle, an estate that stretches more than 58,000 square feet in Hillsboro Beach, Fla., was listed in 2014 for $139 million. It was the priciest home listed in the country at the time. The price tag later jumped to $159 million before it was eventually pulled from the market in 2016. The oceanfront home features 11 bedrooms, 22 bathrooms, a private IMAX theater, a 3,000-bottle wine cellar, and a 20-car garage. The property owners will try once again to sell the estate but this time will use an auction. The auction for the home started Monday at and concludes Thursday night.

Concierge Auctions, which caters to luxury real estate auctions, says it plans to sell at least 20 homes this year that will be listed for more than $10 million. That is double last year’s total, they say.

“The trend for high-end real estate going to auction is definitely on the rise,” Laura Brady, CEO of Concierge, told CNBC. “We’re seeing more sellers across the country than ever before, especially in the $10 million, $20 million–plus, and even $100 million–plus category.”

With the buyer pool being so small for these ultra-luxury properties, some owners are turning to auctions to try and get the homes sold faster.

However, auctions for high-end real estate aren’t always successful. For example, basketball all-star Michael Jordan put his Chicago estate up for auction in 2012, but failed to get his minimum price. The home is still on the market.