A luxurious estate in Hudson, Montreal was recently sold in an absolute auction. An elderly couple who own the estate had originally listed it in 2008 for an asking price of $6.9 million. They had subsequently scaled down the price but could not sell it at the price they wanted and finally opted for the absolute auction route where there is no reserve bid. That is perhaps the reason why the estate fetched only $3.4 million including a 10% commission for the U.S.-based Grand Estates Auction Co. which organized the auctions.
The owner was in a hurry to sell as he wanted to go off on a world tour and hence decided to undersell. The current municipal evaluation of the estate is more than $4.3 million and the property attracts a property tax of $41,000 a year. Luxury property in Montreal is finding it difficult to find a buyer. This year, the highest priced home for sale in Hudson was purchased for $825,000. Canadians are looking at alternatives to real estate brokers to sell their homes. However, Don Campbell, president of the Vancouver-based Real Estate Investment Network, believes that it is risky for vendors in Canada to go for auctions due to a limited number of buyers.
The Oakleigh Estate in Hudson initially listed with Profusion Realty Inc. in 2008. They marked down the listing price as the valuations went down due to the economic crisis. The owner who is an entrepreneur and scientist, who helped build the now defunct company Phoenix International Life Sciences Inc refused to lower the price beyond a point even when the municipal evaluation had gone below $3.5 million. Louise Rémillard, president of Profusion, highlighted the fact that the pricing of a listing has to be right for it to sell quickly as there’s nothing in real estate that price can’t fix.