Illustrated Properties readies auction of homes worth $16 million

By Linda Rawls

01/24/2005

Illustrated Properties' first luxury auction Feb. 14-15 will feature five Palm Beach County homes listed for more than $16 million. The properties include a 20-acre horse farm in Wellington, three new homes and an estate in Palm Beach Polo and Country Club.

" When you put 12 to 20 potential buyers in a room, it becomes a competitive bidding frenzy," said Marilou MacKenzie, corporate auctioneer for the Palm Beach Gardens-based real estate firm.

Not all Realtors agree that auctions are the best way to sell a home, but property auctions are on the rise. In 1980, $10 billion worth of real estate nationwide, mostly farmland, sold at auction, according to The Gwent Group of Bloomington, Ind. In 2002, $58.5 billion worth of residential, commercial and agricultural properties sold at auction.

Besides the lure of a fast sale, sellers turn to auctions to expose their homes to short but intense marketing campaigns that get the attention of local and international buyers, MacKenzie said.

Four of the sales are reserve auctions — the seller must approve the final price. The other home will sell for a minimum bid of $2.6 million or higher. Buyers must add a 10 percent premium to the final price, which pays the auction house, the listing agent and co-broker. Most sales must close in 30 days, and sales are "as is," though the homes may be inspected beforehand, MacKenzie said.

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