This week, a luxurious modern Bel Air mansion was up for auction for $87.8million. But the highest bid came in just under $45.8 million, according to the home’s seller, dermatologist-turned-developer Alex Khadavi.

“Horrible, Horrible, Horrible!” Khadavi described the auction results to CNBC as “Horrible, Horrible, Horrible!” Two weeks after placing the property on the market, he filed for Chapter 11 bankruptcy protection.

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, the auction for the property in the luxury Los Angeles neighborhood failed to meet the $50 million reserve, the lowest amount Khadavi would entertain.

He said, “Nobody ever told me that this thing was going to drop below or below this level.”

Khadavi — who owes tens of millions of dollars to several creditors, according to court filings — had hoped the auction would precipitate a sale price large enough to cover his debt. CNBC was told by the doctor that he was not happy with the fact that Monday’s auction coincided both with significant drops in crypto and equities.

Khadavi stated that he believes his agreement with Concierge Auctions prevented the company’s starting bidding below the reserve price. He was surprised to discover that auction houses were starting to bid $10 million lower than the initial price they had agreed to. This lower starting point, according to the seller set the scene for everything that followed.

Slow bids were received and the final bid accepted on the auction’s last day was $4.2 million below the reserve. It was not possible to reach the $46.8million offer that had been made before the auction ended.

Concierge auctions did not comment on Khadavi’s confusion about why the bids were starting below his reserve. However, the auctioneer refused to reveal the number of bidders who actually participated in this auction. Chad Roffers (the company’s president) sent this email with the following statement:

The Trustee has accepted the highest bid after a lively auction. We are certain that market value has been delivered, having received over 80 qualifying showings within the past 60 days. 

A seller does not have to accept any bid lower than the reserve price. However, the auction of Khadavi’s property is. located at 777 Sarbonne Road,It’s part bankruptcy proceedings so it is more complex. CNBC spoke with Khadavi, who said the court would consider in June the highest offer to purchase the home. If approved, it will go ahead regardless of whether Khadavi approves.

Khadavi said that he is currently trying to find an offer which exceeds the highest bid in the auction. He also stated that he was considering taking legal action against the auctioneer because of what he described as a flawed auction.

Aaron Kirman, a co-listing agent at Compass stated that “Honestly, it’s not my happy” “We desired more.”

Kirman however stated that the auction was not flawed. According to the agent, who was involved in multiple luxury real-estate auctions, “At the final day, the highest biddingder is the highest bidding.”

High-end properties sitting on the market for long periods of time are likely to receive a price reduction of almost half. CNBC has reviewed recent auctions for ultra-luxury properties. the top four mansions to ever sell at auction saw their original asking prices chopped by 68% or more.  

According to the website of the auctioneer, the Bel Air sale will include a court-approved, 5% auction fee. This will be paid directly by the buyer. The property would be worth just under $48million. This mansion, if it is approved by the courts, would become the fourth-most expensive house ever sold at auction.