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Archive for May, 2010

Palm Beach the Deep Discount Island ???


Sotheby’s Listed @ $10.75M in 2007 now @ auction for $2.95M

Estate Section home on Via Del Lago to be auctioned

By DARRELL HOFHEINZ
DAILY NEWS STAFF WRITER
Updated: 12:19 p.m. Thursday, April 29, 2010
Posted: 6:47 p.m. Wednesday, April 28, 2010
Palm Beach real estate agent Nancy Mendel is taking an unusual approach to selling an oceanfront home she owns in the Estate Section. The 1982 four-bedroom house at 100 Via Del Lago will be auctioned next month with a required minimum bid of $2.95 million.

Standing on a lot measuring more than a half-acre and offering more than 5,500 square feet of living space, the house is listed for sale at $4.75 million.

The auction, on May 22, will be conducted on the property by New York City-based Concierge Auctions. The company’s “pre-sale estimate” of the selling price is between $3.85 million and $4.35 million, according to a statement by the auction house Wednesday.

High-end home auctions appear to be a rarity on the island, although a few upscale properties have been put up for bid in nearby communities over the past few years, according to local real estate sources.

Concierge Auctions conducts high-end property auctions across the country and is a “preferred provider” of auction services for Sotheby’s International Realty, said Laura Brady, the company’s co-founder and vice president of marketing.

Mendel is a longtime real estate agent affiliated with Sotheby’s’ Palm Beach brokerage. A resident of Palm Beach since she was 1 year old, Mendel built and later renovated the house on Via Del Lago but has not resided there for several years. She lives in another home she owns in Palm Beach and leases the Via Del Lago property seasonally. The house has been on the market about three years and at one point was priced at $10.75 million.

Although she has never been involved with a home auction before, the concrete time frame for the sale appealed to her, Mendel said.

“I’m trying to consolidate my life, and I certainly don’t need two homes in Palm Beach,” she said. “I do want to sell it before summer.”

Potential buyers must pre-resister for the live auction, Brady said. Each bidder must show funds of $100,000 to qualify for the auction. Bidders can bid by phone or via a representative during the event, which won’t be open to the public.

Speaking by phone from New York, Brady said the auction of Mendel’s house will be the first time Concierge Auctions has conducted a home auction in Palm Beach.

“I’m not aware of any auction that has been hosted in the Estate Section,” added Brady, who said her company in January auctioned a Hawaiian home owned by Cher for $8.72 million.

“We only specialize in luxury residences. Our average price point is in the $4 million range,” Brady said.

Real estate broker Tricia Ward, president of the Palm Beach Board of Realtors, could not recall any auctions of residential properties in Palm Beach. Ward said she had looked into auctioning properties in the past but decided it wasn’t for her.

“A lot of auctioneers want to set the bidding too low, and it scares people off,” said Ward, who owns Ward Real Estate in Wellington. “But I think that when they work, it’s great.”

Brady acknowledged that many people associate home auctions with foreclosed and other distressed properties. But she said auctions of high-end properties can offer sellers an alternative to a standard listing.

“Traditionally, real estate auctions have been viewed as one of the later stops for sellers to consider,” Brady said. “But we’re seeing that auctions can produce the best price in the shortest period.”

Mendel said she is hoping the house brings far more than the minimum bid required by the auction house.

“We’re counting on a lot of people being interested,” she said.

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