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Wednesday, January 15, 2014

Will this $11 million Mississauga mansion sell for less than half it's value at auction? Or is the media being played again?



This is 2290 Saxony Court in Mississauga, Ontario.

Its an 18,000 Sq tt, 4 Storey, 23 Room, 9 Bath French Chateau Inspired Mansion. From the realtor description:
This Masterpiece features hand picked creme marfil marble from Spain, 10 Ft Honduran mahogany doors, 23 Ft coffered ceilings, plank sized North American white oak flooring, floor to ceiling hand carved marble fireplace mantle, A $1 Million Hvac system, automated smart system, an 8 car garage, a wine cellar. 
Extras: a state of art theatre room + a games room complete with heated hardwood floors and a bar! The exterior boasts buffed chamfered Indian limestone (approx cost $1 Million), 25 tons of structural steel framing, 2′ water nain, 200 Amp generator.
Supposedly the was originally priced at $11 million (curiously the numerous press articles don't list what it's appraised at - we've all seen that story before) and the owners, in an attempt to sell the home quickly, have turned to Ritchie Brothers to auction the house.
The 23-room mansion, located at 2290 Saxony Court, off of Mississauga Rd. just north of the QEW, was originally priced at $11 million, but the auction company is estimating the house could sell for about $5.5 million as the owners are looking to sell quickly.


However, Ritchies Auctioneers managing director Kashif Khan said the mansion could ultimately wind up selling for more than the estimated price. He said auctions work best when there's a unique item up for grabs and it's priced right because that leads to competitive bidding. Khan said he expects that to happen with the Mississauga home.
Ahhh, suddenly the picture clears.

Ritchie Bros is attempting to generate advertising for their auction and a bidding war. The hook?  Announcing the house MAY sell for half it's original listing price of $11 million.

Meanwhile the house gets worldwide media attention with newspapers, like this photo spread in the Vancouver Sun.

Is it working?
The company has received calls about the property from places such as Asia and South America and there has also been interest here in Mississauga from well-known, wealthy locals, said Khan.
Curiously this online Windsor newspaper story contains an interesting reader's comment about the photo of the mansion above:

The comment says, "the front of the property has been Photoshoped; the sidewalk and curb are where the pillars and fence are. There is no more setback to this monstrosity than there is to a bungalow on Bloor. I hope no one is bidding online based on those pictures. Unless there is a disclaimer along with the description and photos of this place it constitutes fraud."

Misleading photoshopped real estate pictures in a real estate promotion picked up by media outlets and run worldwide?

Haven't we seen this before?

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10 comments:

  1. Google Maps, thank you.

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  2. If you google the address, you can view it in streetview. The date on the streetview says August, 2011 and it shows the builder's signage. I wonder if it has been sitting empty since built. This could explain the need for Ritchies.

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  3. It's clearly photoshopped...:

    https://maps.google.ca/maps?safe=active&bav=on.2,or.r_qf.&bvm=bv.59378465,d.aWc,pv.xjs.s.en_US.ob7ly0us8QQ.O&biw=1366&bih=666&dpr=1&q=2290+Saxony+Court+in+Mississauga,+Ontario&um=1&ie=UTF-8&hq=&hnear=0x882b441eb0e835c5:0x72559cab3a7a317c,2290+Saxony+Ct,+Mississauga,+ON+L5H+4B5&gl=ca&sa=X&ei=fgHXUr7TBeam2gWroICoCw&ved=0CCkQ8gEwAA

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  4. Wow, what a difference. Be sure to scroll around in Google maps and take a good look around that and otehr homes. A large part of value is determined by the neighbourhood. Being another home on a rather typical cul-de-sac and the fact that the other homes around looks like nice suburban homes rather than huge estates. Definitely a nice place, but big question as to actual unique value of having a nice building in a rather normal looking neighbourhood. I think it's reasonable to expect that someone spending $11,000,000 on a home will be looking to buy into something very special.

    CanAmerican

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  5. I don't think the picture is altered. To my eye they just used a good angle from the curb and perhaps a wide angle lens that would elongate the shot.

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  6. According to Pricey Pads the property was listed for $7,500,000 in June of 2013 and it appears not to have sold.
    So $5,500,000 is not quite "half price".
    More like how the Bay ALWAYS has women's clothing at "70% off".

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  7. Even more revealing, look up Saxony Court Mississauga on Google Earth. The house is grotesquely overbuilt for the size of the lot. It is literally cheek-by-jowl with its neighbours. The Truly Wealthy do NOT pay to rub shoulders with their neighbours -- at least not the neighbours in a regular suburb!

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  8. Interestingly, that picture on Google Street view (which shows a bunch of for sale signs on the lawn) was shot in August 2011.

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  9. If you look a little futher, you will find that Mr. Cerny the owner of this house, burnt the first house down that was on this property claimed bankruptcy, which was contested because it was a fraudulent bankruptcy, and then built this huge monstrosity.

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  10. This house price was inflated.... and too big for the lot- spending that kind of money with so many flaws is crazy... 6.2 million less commission and marketing costs.... plus carrying this house for 5 years ( not 3) means builder lost a lot of money - regardless. Never worth 11 million-- just a pipe dream.. He had tried to sell for 7 million and apparently deal fell apart. So buyer beware.. You may have just bought someone else's bad investment and unfortunately now it's yours... :(

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