In Down Market, Buyers Balk at California Mansions

Photo: California mega-mansion sale prices slashed by desperate sellers

Even in a state that's home to Hollywood's rich and famous, a few California houses are truly the height of extravagance.

One such supermansion, the Orange County Super Castle, is 16,500 square feet and features an in-house casino. It has a climate-controlled, 10-car garage and a staggering 3,200-square-foot bedroom, bigger than many homes.

It's the kind of decadence that normally houses some of the richest people on the planet. But these mansions now sit empty as hard economic times have reached all the way up to the highest-end homes. No one seems to want to pony up $10.5 million for a home, even if it has a casino inside.

VIDEO: Tough economy forces sellers to bring down the cost of their extravagant homes.
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After sitting on the market for four months, the Super Castle went to auction Saturday, but the highest bid barely hit $6.6 million -- a $3.9 million difference. The seller rejected it.

"You know, our heart aches for a lot of people that are in this position, but people in this position have taken that risk," auctioneer Ed Kaminski told "Good Morning America." "They thought it was a worthwhile risk, and sometimes it works out in their favor, sometimes it doesn't."

It's a lesson supermansion builder Larry Igarashi learned the hard way.

"I am not building another home like this," he said. "Probably, I will go more economical, you know? Common-demand size."

In the meantime, many supermansions have been divided into multiple condominiums to try to recapture some of their value.

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