The 24,000-square-foot Shipley Mansion, which is nestled in the San Martin foothills and came on the market mid-May, attracted 18 offers from people all around the world and was poised to set the record for the highest home price ever in South County.
All but one offer came in above, or well above asking price, according to listing agent Duane Adam of Sotheby’s International Realty.
Nearly five months later, however, the house is still on the market and the price has been raised. The 20-acre property, located at 915 West San Martin Ave., has a vineyard, a theater and front gardens inspired by the Garden of Versailles.
“That’s French country design. That’s what we like,” said homeowner Dale Shipley, of the house’s design.
The house was appraised at more than $10 million in June, but was originally listed for less than $2 million.
Adam priced the mansion below market price, but was not surprised that most offers came in above the asking price in May.
“If the exposure is proper, the offers tend to gravitate towards what real market value is,” he said.
The listing price has been increased to reflect the house’s market value and is now $7,999,950.
“They simply had a longer period of time in order to sell the property, so they are not as rushed right now to get the property sold,” said Adam.
Pricing a home much lower than it’s worth is also a ploy used occasionally to generate a lot of interest in a home that the owners hope will lead to a bidding war well above asking price, Nancy Robinson of Coldwell Banker of Gilroy told the Dispatch in May.
“If (Adam) had priced it at $10 million, nobody would have looked at it,” she said. “That house is not going to sell for $2 million, I’ll tell you that. This is a once-in-a-lifetime thing.”
The Shipley Mansion is owned by Dale Shipley, who founded the Silicon Valley-based Veritas Software Corporation in 1983. The Shipley family will be moving to one of their other homes in Santa Clara County and will no longer be living in San Martin, Dale said.
When asked why he was selling the mansion, Dale Shipley responded, “that’s personal.”
Records from the Santa Clara Tax Collector’s Office confirm rumors floating around the real estate community that Shipley is behind in paying his taxes on the property.
According to county tax records, Shipley owes $656,710.07 in taxes, penalties, fees/costs and interests, due Oct. 31. His current status is delinquent.
Once a homeowner is considered delinquent in paying property taxes, the owner has five years to pay these taxes, or the state can confiscate the home and sell it by auction, according to a records person from the Santa Clara County Tax Collector’s Office.
Shipley is four years behind on taxes and if he fails to pay his property taxes by 2015, the state can confiscate the home and sell it by auction, according to the Collector’s Office.
Within hours of the announcement that the Shipley Mansion was for sale, Adam received more than 500 calls and emails from interested buyers, including the agent for pop superstar Rihanna and former Baltimore Ravens linebacker Ray Lewis.
Several potential buyers flew in to see the property. One came from Beijing, but did not make an offer. Several flew in from Southern California. Of the 18 who made offers, 17 of these offers came in over the original asking price, according to Adam.
“One actually flew in from Slovakia and asked less than the asking price, which was a surprise,” said Adam.
He is not, however, surprised that the house is taking a while to sell.
“In that price range, the days on the market is always longer,” he said.
