Since putting the house on the market in September, “We’ve had offers,” Goldman told Crain’s, “but they didn’t reach the number the seller wanted.” An auction may accelerate the process of getting it sold by signaling the sellers’ willingness to deal.
Goldman’s listing says the suggested opening bid is $1.2 million, but Diana Peterson, whose AW Properties Global Auction Works will handle the online auction, said that the seller is unlikely to settle on a price that low. In the curious parlance of an auction, Peterson told Crain’s that the seller has what’s known as an “unpublished reserve,” or an undisclosed price below which he doesn’t plan to go, and that the reserve is above the suggested opening bid.
Why would anyone start the bidding at $1.2 million, knowing that the seller doesn’t intend to let the property go for that amount? “The seller can see where the bids come in, and decide what to do,” Peterson said.
In December, Peterson auctioned a different property listed by Goldman, a historical Lake Forest estate whose sellers, like Busche, were selling their late parents’ home. Prior to the auction, the asking price was about $2.5 million, down from a 2019 asking price of $3.1 million. The property sold for a little over $2.25 million.