A run-down house contaminated with methamphetamine and in dire need of refurbishment has sold under the hammer for $457,500.
The 1950s three-bedroom house on Killarney Street in Frankton, Hamilton, attracted six potential buyers when it was called at Lodge’s auction room on Wednesday.
Bidding opened at $300,000, the auctioneer announced it on the market at $450,000 and the property sold for $457,5000, well below its RV of $610,000.
“The vendors’ instructions are very clear, they wish to wash their hands of this investment property!,” the listing said.
Start your property search
Lodge salesperson Nathan Smith said the price exceeded their expectations showing that the marketing strategy to get the attention of bargain-hunters had worked.
“The whole plan was to basically have the outcome we had today – to have people in the room fighting over the property.”
Smith confirmed the property, being sold “as is, where is”, was meth contaminated and said a report showing this was provided as part of the campaign and mentioned in the listing.
“Basically, to tell people, just get there, it’s going to sell no matter what. A distressed sale is like a mortgagee sale in some ways – it attracts those bargain-hunters, they get in the room and they get a little bit excited.”
Read more:
- Mortgagee auction pain: $1m losses spread to Jacinda Ardern’s neighbourhood
- Bidding wars for defective Wellington homes brings in more than $1m
- Will the year-long house price slide come to an end in autumn?
The main interest had been from investors who could do the clean-up themselves and rent it out, or flippers.
It was his understanding that the new owner was an investor who was planning to hold on to the property.
Although it was marketed as being on 400sqm of land zoned residential high, Smith said there were not many developers looking to buy at the moment.
Since the auction, people have been calling him wanting to buy another one just like it.
Earlier this year, a 1920s Hamilton character home on Rifle Range Road, in nearby Dinsdale, that had been damaged in two separate fires sold in a Harcourts’ mortgagee auction for $411,000 after attracting eight bidders and 52 bids.
A luxury home on Bosun Place had been nominated for the Master Builders House of the Year. Photo / Supplied
Meanwhile across the road at Lugtons auction rooms, a brand-new four-bedroom, two-bathroom home that has been nominated for the Master Builders House of the Year sold under the hammer for $1.36 million.
The high-spec executive home on Bosun Place in Flagstaff, built by Sentinel Homes, attracted two bidders with the auction opening at $1.28m and creeping up in $20,000 bids until it paused at $1.32m.
After a long negotiation, Lugtons auctioneer Campbell Turner told the crowd that the vendor was prepared to meet the market and announced it on the market and sold at $1.36m.
An entry-level lifestyle property on Laxon Road in Rotokauri attracted multiple bidders at auction and eventually sold for $1.01m . Photo / Supplied
At the same auction, an entry-level lifestyle home on Laxon Road in Rotokauri attracted multiple bidders. The auction opened at $710,000, was announced on the market at $950,000 with small bids of between $3000 and $5000 placed until it sold at $1.01m – well above its 2020 RV of $680,000. The appliances came in an “as is, where is” condition.
- Click here to find more properties for sale in Hamilton
