Real Estate Marketing and Public Relations

Online auction: Is this the
future of home sales?

NEW ROCHELLE — Buying a home in the city's luxury
Premium Point development had always been
considered a safe investment, especially since the
gated community is only about 20 miles from New
York City.

So when Peter Mastroianni bought a home there for
$2.2 million in March 2007, he figured he would
enjoy the summer with his family and then rent out
the property.

But then the housing market collapsed, leaving his
rental prospects high and dry.

"Sobering reality, that's what it is," said Mastroianni,
a community banker who has been unable to rent or
sell the property despite dropping his asking price
to $1.95 million. "You ride the highs and deal with
the lows, like any business."

Now he and his Realtor are trying their luck in a new
venue — an online home auction site called Bid on
the City.

Launched in Manhattan in October, the business is
starting to make waves in Westchester County as
buyers and sellers seek the best deals in a generally
deflated housing market.

The site's second Westchester County auction will
begin at 11:30 a.m. today.

Bidders can register at BidontheCity.com, which will
stream the auction in real time out of the company's
New York headquarters. Interested buyers can also
participate in person at 226 Fifth Ave. in Manhattan.

There are about 10 properties up for sale, with bids
starting at $1. Sellers have a base price requirement,
though, so don't expect to run away with a complete
steal.

Homes on the bidding block are mostly around $1
million and up this time around. An auction planned
for September will be dedicated to homes under $1
million.

"Our experience in Manhattan shows that the most
successful events are those that are dedicated to
certain groups of buyers," said Vlad Sapozhnikov,
general manager, who co-founded Bid on the City
with Albert Feinstein.

There are no listing fees to put a home up for
auction; the only charge is a 3 percent buyer's
premium once a transaction is completed.

Approximately 70 people are already registered to
bid in today's auction, though many more are
expected to tune in just to watch.

"The people who put their houses up on Bid on the
City are the same people who put their houses on
the market," Sapozhnikov said. "It's people who need
to sell. There's nothing to lose. We take all the risk
up front. We sponsor all the advertising and
marketing."

In Westchester, Bid on the City has partnered with
Realtors to show the properties and conduct open
houses, unlike in Manhattan, where they also handle
this component.

Lester J. Kravitz, a Pelham Realtor who has two
houses up on Bid on the City, says this combines
the best of 20th- and 21st-century marketing.

He sees this as the future of real estate, likening it to
eBay, the online marketplace.