Deer Lodge, a stunning 187-acre estate in Santa Barbara, California, was sold via auction on May 21. The property features 13 expansive structures, a vineyard, a treehouse, a fort, and a zip line, making it a unique luxury offering.
Beyond its impressive amenities, Deer Lodge boasts a distinguished ownership history spanning 123 years. The estate was owned by members of the John Deere family for seven decades before being purchased by Dan Burnham, former chairman and CEO of Raytheon Company. Burnham and his wife, Meg, acquired the property in 1997 from award-winning comedian and actress Caryn Johnson—better known as Whoopi Goldberg.
Prior to the auction, four buyers had preregistered, and some placed pre-bids, according to Mike Brady, the listing agent with Santa Ynez Land Sotheby’s International Realty. The final sale price will be disclosed once the transaction is finalized in approximately 30 days.
The Rise of Luxury Home Auctions
Once primarily associated with foreclosures, auctions have increasingly become a preferred method for selling high-end real estate. Wealthy homeowners, including business executives and celebrities, are bypassing the traditional listing process in favor of auctions, even when they owe nothing on their properties.
“Just like auctions of the world’s finest art, cars, and antiques, real estate auctions have proven to be a smart way to buy and sell luxury properties,” says Laura Brady, president of Concierge Auctions. The firm, specializing in high-end real estate, sold 22 properties in the first quarter of this year alone. Among its past sales are homes owned by singer and actress Cher, former Arizona Cardinals quarterback Kurt Warner, and University of Alabama head football coach Nick Saban.
Why Auctions Appeal to Luxury Homeowners
According to Ms. Brady, one of the key advantages of selling via auction is the difficulty of valuing one-of-a-kind estates. By starting at a relatively low price, auctions attract a competitive pool of buyers. Properties sold by Concierge Auctions typically have five to ten bidders.
For the Burnham family, the auction format provided national exposure for their unique estate. “We are redefining luxury real estate marketing, and auctions have proven to be a powerful platform,” says Mr. Brady. In the five weeks leading up to the sale, he showed the property to 22 potential buyers from across the country.
Another advantage of auctions is their “time definite” nature, says Pam McKissick, CEO of Williams & Williams, a 110-year-old real estate auction firm. Through its subsidiary, Luxury Group Auction, the company auctions one high-end home every few weeks. Many of its clients are retirees in the Northeast looking to move into upscale senior living facilities, which often have waiting lists. “Once they get accepted, they need to sell their homes within a specific time frame,” explains Ms. McKissick.
Additionally, online streaming allows buyers worldwide to participate, increasing competition and potentially driving up sale prices. However, not just anyone can bid. Ms. Brady notes that bidders must wire a deposit of $100,000 to $500,000, depending on the property, and provide financial references. Unsuccessful bidders receive a full refund of their deposits.
At Deer Lodge, “the bidders are highly discerning, educated, and influential. They seek quality in real estate just as they do in fine art,” says Mr. Brady.
Originally listed for $14 million, the estate was sold without reserve, meaning there was no minimum bid requirement. When asked if he was concerned about the final sale price, Mr. Brady was confident: “The quality speaks volumes. We believe someone will pay fair market value.”
