A three-bedroom do-up in South Auckland could sell for as little as $1 when it goes to auction on April 15.
Ray White Manurewa agent Dushen Mallimaratchi, who is marketing 3/8 Barneys Farm Road, in Clendon Park, said setting the reserve at $1 was risky but his vendors trusted the market to set the value.
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The reserve price was already driving interest: in the first 24 hours after it was listed, 40 people added the property to the watch list.
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“People are surprised and some are commenting on social media post asking if they can buy it for $2,” Mallimaratchi laughed.
Mallimaratchi was confident of a good result. “There’s always a risk with a $1 reserve but the vendors are trusting the process and want the market to decide the price of the house," he said.
The three-bedroom home, which has a 2017 CV of $450,000, is on a cross lease site zoned for mixed housing urban density. It last sold for $260,000 in 2008.
3/8 Barneys Farm Road has a CV of $450,000 . Photo/ Supplied
“People are getting scared of auctions and I want to show that everyone has a chance to have a go,” he said.
Mallimaratchi said the property would appeal to first home buyers or those who were looking for a renovation project as it is a fixer-upper.
“Through our open homes I’ve met a lot of home buyers looking for a property to add value to,” he said.
The $1 reserve tactic worked well last year for Ray White Manurewa agent Pat Lapalapa, who listed a three-bedroom do-up for $1 reserve that eventually sold under the hammer for $600,000.
That tactic attracted a then-record 39 registered bidders for the auction of 14 Landette Road, Manurewa, with over 200 people watching the auction price go to $70,000 over CV.
Lapalapa said that the crowds benefited other properties' auctions on the night too, with the under-bidders staying on to bid on other lots.
He said: "A $1 reserve removes the vendor price expectations barrier. Some people don't even turn up to the auction, yet they could have been successful and bid something the vendor would have accepted."
