Multimillion Dollar Home Goes on the Auction Block - News Channel 36, August, 2009

Right now, there are more than two hundred waterfront homes for sale on Lake Norman, all above a million bucks!

So, how do you stand out when competition is that tough?

Situated on a cul-de-sac on Lake Norman is a 7000 square foot home which has sat on the market for a year.

The listing price: $2.5 million.

Wanting to turn his equity into cash, the owner turned to Charlotte based Grand Estates Auction Company and their absolute auctions.

"This particular seller has another property that he is already building," says Stacy Kirk,

Grand Estates President.  "This causes the buyers to become motivated to act," she continues.

"Absolute means that there is no minimum, reserve bid price, and that can be difficult for people to believe," says Kirk.

So if the highest bid on auction day is a half a million dollars, the seller has to take it.

"We see this property as having a great deal more value than that, and I suspect there may be some bids for $500,000," says Kirk/

Almost always the homes sell for market value or more.

"The sellers chosen this method because they want to stand out from the crowd. They are ready to sell and they ultimately understand they don't select the sale price for the property." Kirk expects 10 to 12 bidders on this auction.

They have to pre-register and must be able to close on the home in 30 days.

"Sometimes we'll do this incredible... national and international advertising and the next door neighbor will be the winning bidder," says Kirk.

Just days ago, she sold this house in Vail, Colorado.

A couple of weeks ago a Nantucket Island estate in Massachusetts went for more than local realtors expected at $5.2 million.

Yes, the seller is taking a risk, but one thing is for sure. "There is a deadline, and the deadline for this property is Tuesday, August 4th."

Kirk's family started the auction company 10 years ago when her mom was trying to sell a multimillion dollar home.

The previews on the Lake Norman home started Friday, but the auction Tuesday is private and only open to registered bidders.