A three-bedroom do-up in South Auckland that was brought to auction with a $1 reserve sold under the hammer for $635,000.
The owners of 3/8 Barneys Farm Road, in Clendon Park, were “over the moon” after their home fetched more than 40% above its 2017 rateable value and delivered them a profit of almost $400,000.
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The listing agent, Ray White Manurewa’s Dushen Mallimaratchi, said that while setting the reserve at $1 was a risky, the gamble had paid off.
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There were 25 registered bidders at the auction last Thursday – a mixture of first home buyers, families and investors - and about another 150 people watching the proceedings.
“There was good atmosphere. Everyone believed they had a chance because it was $1 reserve and people thought they might get lucky and buy it for $400,000,” Mallimaratchi said.
The 100sqm cross-lease home, which sits across the road from Waimahia Intermediate School, was bought by traders looking for the next renovation project.
The do-up property was bought by traders looking for their next project. Photo / Supplied
Mallimaratchi said the vendors were “over the moon”.
“They are really, really grateful for getting the price they asked and are now looking to upgrade,” he said.
He added: “Property is a big asset for everyone and if I got a chance to do a $1 reserve campaign again, I would do it again,” Mallimaratchi said.
The property was zoned for mixed housing urban density, and according to OneRoof records last changed hands in 2008 for $260,000.
The $1 reserve tactic also worked well last year for fellow Ray White agent Pat Lapalapa, who listed a three-bedroom do-up for $1 reserve that eventually sold under the hammer for $600,000.
14 Landette Road, in Manurewa, Auckland, sold last year for $600,000 after going to auction with a $1 reserve. Photo / Supplied
Thirty nine registered bidders turned up for the auction of 14 Landette Road, in Manurewa, with more than 200 people watching the July auction.
Lapalapa said that the crowds benefited other properties on that 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."
