Real estate is not typically bought and sold by auction in Canada. However, a luxury family home in Calgary, Alberta is becoming an exception to the rule. The home has been listed for $3.88 million but has had no buyers come forth over the past two years, sparking the idea for a bidding war. Auctioning properties, while rare, can instigate real estate transactions which may otherwise be difficult to come by through traditional means.
The Calgary home is located on Clarendon Road in northwest Calgary. It is 4,600 square feet and boasts a gourmet kitchen, a wine cellar, a Guinness-themed bar, and a stunning view of the mountain. The brokerage overseeing the auction and any subsequent real estate transactions says its global reach will help connect potential buyers to the large home.
This is the first time in nearly 18 years that a family luxury home has been auctioned off in Calgary. The last luxury detached home which was auctioned off in the city was sold for $2 million in June 2000. For this auction, bidders must pay a $100,000 refundable deposit to prove they are qualified to buy.
The brokerage at the helm of this auction says that this is a more transparent and competitive way to purchase a home, as each person making an offer knows exactly what they are up against. They further indicate that similar auctions could popularize in Calgary if they live up to their promise of efficiency and value on both sides. Those considering an auction or other means of selling their home should speak with a lawyer to understand Alberta laws associated with these real estate transactions.
Source: CTV News, "Rare auction to be held for Calgary luxury home", Michael Franklin, Feb. 15, 2018