A chocolate box-style cottage on Auckland's North Shore goes to auction this month with an ultra-low reserve of $1.
19B Utting Street, in Birkdale, has been billed by listing agents Alex Dunn and Ammy Multani, from Harcourts, as the ultimate property challenge.
“Are you the type of person who thinks the dirtier it is the better? If a little bit of rot scares you ... keep scrolling,” the agents declare in the listing on OneRoof.
“This project isn’t for the faint-hearted but the results will be highly gratifying. Transform this four-bedroom home back to its glory in such a scenic location.”
Start your property search
The property had been put on the market earlier this year, with a different agency, but then significant building issues were discovered and it was withdrawn from sale.
Dunn said the known defects had been disclosed. “It’s a project house. There is some structural rot in the support beams and some of the pilings are starting to fall away in the earthworks. Some moisture was also found in the kitchen and laundry,” he told OneRoof.
“It’s fixable from what we’ve heard and people have done their due diligence on it. It’s just who’s willing to take on that challenge?”
The vendors were very keen to sell, he said. “The house is vacant. It’s a marriage split between the vendors. Six contracts fell over based on building inspections. Our vendors are just about at breaking point. They just need to get rid of it. If we don’t sell it, the bank will by mortgagee sale.”
He added: “They want the most they can get for it, taking into account all the disclosures. The RV is around $800,000, but they’re not going to hit that by any stretch of the imagination. Once renovated it might go for $600,000 to $700,000 in that location.”
The buyer would most likely be a builder or investor, although a few first-home buyers had shown some interest. First-home buyers, however, may find it difficult to get a mortgage on a property in need of so much work.
Dunn said the house was the first he had sold with a $1 reserve, but he believes the tactic will create competition among buyers looking for a bargain.
“My background was marketing before I came to real estate. We thought we needed to get as much competition as possible. As many people bidding on this property as possible to achieve our vendor the highest price. Within the first 48 hours we had 25 enquiries.”
The property will be sold by auction on December 20.
