Purchased for $14 million in 2003, the “resale” of the nearly 9,000-square-foot Russian Hill home at 2323 Hyde Street for $9 million in 2011 wasn’t exactly arms length, as we revealed at the time.
Having failed to resell when listed for $13.8 million four years ago, the “awe-inspiring mansion”, which was designed by Willis Polk, with panoramic views, an “unparalleled rooftop terrace” and a lush landscaped garden in “esteemed Russian Hill,” returned to the market two months ago, positioned as an “auction,” with an anticipated “opening bid” of $9.98 million that failed to materialize.
The “auction” for 2323 Hyde Street has now concluded with a high bid of “$6.375 million,” not including a 12 percent “buyer’s premium,” for an effective sale price of $7.14 million versus $14 million twenty years ago. And yes, the resale was officially “at asking,” at least according to all MLS based stats and aggregate industry reports.
IMHO the buyer got a deal.
I understand the frisson produced by an auction with no reserve, but in this market it seems like a foolish risk.
Anyone here want to make the case for that $765,000 “buyer’s premium”? I mean other than congratulating Coldwell Banker Realty/Christie’s AKG/Concierge Auctions for scoring a really big rip in spite of the $3.605 million overestimation of the opening bid earlier this year?
Did the people holding the auction really hunker down, beat the bushes and widen the trenches and utilize their intimate knowledge of the market to produce a superior outcome for the seller? If you think they did, was the premium amount, essentially double that of the usual commission on the basis of the home’s sale price paid to the the buyer’s and seller’s agent, justified?
It seems to me that the “buyer’s premium” for an auction ought to be substantially lower than the commision paid to the buyer’s agent as well as the home seller’s agent.
Speaking of commissions, I don’t think I’ve seen anything brought up about the $1.8B awarded by a jury after finding the NAR had colluded to maintain high commissions in Missouri. Plus, the DOJ is considering broader antitrust action against the NAR, major brokerages are pulling out, more lawsuits are in play, and the head of the NAR resigned. Maybe it’s been discussed elsewhere, but I don’t follow this site that closely.
Hasn’t been brought up around here, I’m guessing because the matter isn’t really settled yet. NAR and other defendants in the Missouri case have vowed to appeal the ruling, which ordered them to pay at least $1.8 billion to hundreds of thousands of homeowners who were required to pay what they argued were excessive fees to agents. And what the Department of Justice might do is pretty speculative at this point.
Buyer’s premiums are negotiable by the CONSIGNOR in auctions at major houses like Christie’s and Sotheby’s. In other words, if you are consigning a collection of art, say a $25 million painting, you might pay no seller’s commission, and get a piece of the buyer’s premium also. Even small consignors are able to negotiate reduction of the seller’s premium. It is all about business, obvously.
Refresh my memory, please: as tempting as it may be to use this as an apple-to-apples-on-the-skids parable, there must be more to the story of the sale twenty years ago. It seems – or seemed – rather overpriced for that point-in-time…no ??
So the seller capitulated to the buyer of last resort?
i had a client who lived at 2238 and always admired that house on the corner
that is a helluva deal on that property
when i think of some of the garbage on the market that makes 3-4M, this is like an urban estate
only downside is the cable car and tourist noise
You should read through the inspection report on the auction site, there are MILLIONS needed in repairs. It is far from turnkey.
Link? I couldn’t find it on the auction listing
i figured there was something i was missing
the bare land there could go for that much
Does it require major structural improvements? Any dollar cost amount for the work to be done?