Thursday’s Auction for 11 East 74th Street Called Off

There may be a happy ending, or a mostly happy ending, to the long and odd story of 11 East 74th Street, the six-floor, seven-bedroom, walnut-paneled mansion that was supposed to be auctioned off this Thursday.

According to listing brokers Rachel Koenig and Lisa Simonsen, there’s an accepted offer on the house, whose tag had fallen from $35 million to $32.5 million, $29,275,000, $26,975,000, $24.95 million and then $20.95 million.

So the auction, which would have been the first for a new online real estate venture called Bid on the City, has been called off. Vlad Sapozhnikov and Albert Feinstein, the auction site’s Ukraine-born founders, aren’t thrilled. “We’ve sent them an email congratulating them on the sale, and reminding them there’s a 2 percent termination fee,” Mr. Sapozhnikov told The Observer. “But they replied that we don’t have anything in writing.”

A sample listing agreement posted on the site’s terms page says, “In the unlikely scenario that You or Listing Agent choose to remove the property from during the Listing Period, but before the bidding event you agree to pay a withdrawal fee of TWO PERCENT (2%) of the Minimum Price.”

But Mr. Feinstein conceded that terms for the auction hadn’t been finalized when the brokers canceled the auction. The mansion’s reserve price still needed to be worked out, along with the auctioneers’ commission. That fee probably would have been 1.5 percent, he said, which means Bid on the City would be making more from the termination fee, though it seems unlikely they’ll get it in full. “I’m sure we’ll work something out,” Mr. Feinstein said.

“We are not in communication with Lisa and Rachel right now,” Mr. Sapozhnikov said. “The house had been on the market since 2006, and as soon as it appeared on our site it sold a week later.”

“It’s too early to talk about all of that,” Ms. Simonsen said today. “We have a client that we had been working with for a long time before Bid and the City.”

Thursday’s Auction for 11 East 74th Street Called Off