http://www.luxist.com/2011/01/04/concierge-auctions-estates-sale-2010-results-wrap-up/ Luxist Comments for Concierge Auctions Estates Sale 2010 Results Wrap-Up http://www.luxist.com/media/feedlogo.gif http://www.luxist.com en-us Copyright 2013 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/http://www.luxist.com/2011/01/04/concierge-auctions-estates-sale-2010-results-wrap-up/http://www.luxist.com/2011/01/04/concierge-auctions-estates-sale-2010-results-wrap-up/
It sold even lower than my previously posted expectation...


"Depending on reserve, it could/should sell for $3.75-$4.25MM at auction in this economy (given the tax responsibilities that come with the property)."]]>Jan 4th 2011 9:59AMhttp://www.luxist.com/2011/01/04/concierge-auctions-estates-sale-2010-results-wrap-up/http://www.luxist.com/2011/01/04/concierge-auctions-estates-sale-2010-results-wrap-up/
When I dug up the final auction price I too was shocked. Yes the Tuxedo Park market is a bit saturated and asking prices dropping a bit. However this is so rock bottom (and a massive loss) as to make no sense. The sellers per Zillo paid $7M for the property and were asking $8M for it through the Sotheby's affiliate in TP prior to the auction.

I can only guess that maybe an mortgage balance is to be assumed on top of the auction price. I didn't request the original bidders kit which would've disclosed that. Other auctions have done similar techniques so *for example* an outstanding $4M mortgage is assumed on top of the $2.25M. If that isn't the case here then something is really, really odd.

Sub $3M is/was giving it away. ]]>Jan 4th 2011 4:53PMhttp://www.luxist.com/2011/01/04/concierge-auctions-estates-sale-2010-results-wrap-up/http://www.luxist.com/2011/01/04/concierge-auctions-estates-sale-2010-results-wrap-up/
The truth, however, is although the property was once offered for $9 million (e.g. in 2006 or 2007), it may be currently listed for $4 million. If this was considered, the sale-to-list ratios shown above would be much better. This is true for most well-executed (emphasis on "well-executed") luxury auctions.

The media, however, does not want to consider this, and rather goes for the more sensational and negative approach. If not sold at auction, most of the properties above would have languished on the market for another 18-24 months, been reduced at least 25%-50%, and then sold at a discount to those reduced prices on the open listing market. That's how clearing inventory and how markets work.]]>Jan 6th 2011 8:34AM