Proceeds from the sale of Peter Madoff's home will be turned over to the U.S. Marshals Service.
It is part of a forfeiture agreement that Madoff and his family agreed to when he pleaded guilty to fraud charges last month.
The Wall Street Journal reports that the asking price is about $100,000 less than what the Madoffs paid for the pad in 2004.
Madoff agreed to serve 10 years in prison and surrender all his assets when he pleaded guilty to conspiracy and falsifying records. Sentencing is set for Oct. 4.
Bernard Madoff is serving a 150-year prison term for the largest Ponzi scheme in history.