Auctioning Off Real Estate

The New York Times reports:

IT took three years for John F. Welch Jr., the former chairman of General Electric, to sell the house he bought in 1990 in Fairfield, Conn. Initially on the market for $13 million, the property twisted in the wind like the corporate kingpin's scandal-laced divorce proceedings, which were settled in 2003. The 10,700-square-foot Georgian-style estate finally sold this April for about half its original asking price.

Apparently determined not to get burned again — at least not slow-roasted, rotisserie style — Mr. Welch has decided to auction a second property that he also got as part of the divorce settlement: a three-year-old, 16-room waterfront mansion in Southport, Conn., which is expected to bring in at least as much as the Fairfield house. Sealed bids and certified or cashier's checks for 5 percent of the price offered are due on this 9,100-square-foot trophy house by 4 p.m. on Tuesday, according to Sheldon Good & Company Auctions, the national auction firm hired by Mr. Welch, who would not agree to an interview for this article.

His surprise maneuver could help raise the visibility of residential real estate auctions. But whether the business-savvy Mr. Welch is in the forefront of the latest trend in real estate depends upon where you live, what the terms of engagement are, whom you ask — and how many slings and arrows sellers have taken (or expect to take) in a turning market.

This is rather significant,the high end appears to be too high in some markets.The perception of what is value has certainly changed.You'll want to read this whole one.