This flashy Bel Air mansion that was listed at $87.8 million flopped at auction — and now the seller is furious

An over-the-top modern mansion in Bel Air is up for auction this week. The highest bid came in at just under $46 million, according to the home's seller.

"Horrible, Horrible, Horrible!" was how Khadavi characterized the auction results to CNBC. He filed for Chapter 11 protection two weeks after putting the home on the market.

The auction for the property in the Los Angeles neighborhood failed to meet the $50 million reserve despite flashy amenities such as a stealth DJ booth that rises out of the living room floor by hydraulics, a black marble-clad car gallery and a glass and marble bridge suspended above the foyer.

He said that nobody told him that it would go below this level.

Dr Khadavi seated on top of the DJ booth that rises from beneath the floor at his spec house in Bel Air.

According to court documents, Khadavi had hoped the auction would lead to a sale price large enough to cover his debt. The doctor told CNBC that he wasn't happy that the auction happened at the same time as large drops in both equities and cryptocurrencies.

The company was precluded from starting the bidding under the reserve price because of the deal with Concierge Auctions. He was shocked when the auction house started bidding $10 million below the lowest price he agreed to consider. The seller thinks that the lower-than- expected starting point set the stage for what happened next.

The highest bid was accepted on the last day of the auction, but it fell short of the reserve, as the bids came in slow. The final offer of $46.8 million was not achieved.

A screen grab of the auction results from Khadavi’s mobile phone.

Concierge Auctions did not comment on why bids started below his reserve. The auctioneer wouldn't say how many people bid in the auction. The company's president, Chad Roffers, offered this statement via email.

After a spirited auction, the high bid is in the hands of the Trustee. We are confident that market value was delivered with over 80 qualified showings in the last 60 days.

A glass-and-marble bridge overlooks the living room and leads to the owner’s wing.

Normally, a seller is not required to accept a bid below the reserve price, but the auction of the property located at 777 Sarbonne Road is a bit more complicated because it is part of the bankruptcy proceedings. If the highest offer is approved by the court in June, the sale will move forward regardless of whether he likes it or not.

He said he was considering legal action against the auctioneer for what he called a flawed auction, and that he was in a race to find an offer that exceeded the top bid.

"I'm not happy, I wanted more." said co-listing agent Aaron Kirman.

The agent who has been involved with several luxury real said he doesn't believe the auction was flawed.

An almost 50% price cut is not unusual for high-end properties that sit on the market for a long time before finally going to auction.

A 5% auction fee will be paid by the buyer of the Bel Air deal, according to the auctioneer's website. The current offer is $48 million. The mansion is the fourth most expensive home to ever be sold at auction.