A deceased estate sold under the hammer this week for more than $100,000 above its RV after an intense auction.
The two-bedroom brick and tile cross-lease flat on Rocking Horse Road, in Southshore, Christchurch, had been unoccupied for some four years before executors for the estate put it on the market last month.
Marketing for the property made clear they wanted the house sold on auction day, but the response was a surprise.
Listing agent Andrew Swift, of Harcourts Gold, told OneRoof there were five bidders in the room, three of whom put their hands up. After flurry of bids, many in increments of $500, the hammer came down at $376,500.
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Swift said the money, minus fees, would be donated to various charities, according to the wishes of the late owner.
“It can happen if you get competition. It sells for over RV,” Swift said.
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Swift’s advertising said the house was damaged in the 2011 earthquakes and had undergone some remedial work, but the insurance company “has settled with the estate for the remaining damage and this property is offered to the market on an ‘as is’ uninsured basis”.
“There was still floor level variation, so the guidelines mean that it would be difficult in its current state to get insurance on. If you can’t get insurance, you can’t get funding,” he told OneRoof.
The buyer was a builder who planned to renovate the house and probably on-sell it.
Swift said there was a good market for these sorts of flats, and a nicely done place could fetch $480,000 to $500,000, so there was margin in it for the buyer.
He said he had over 44 enquiries about the property, and 21 groups viewing it. Potential buyers, who would have had to pay cash for the property, were a mix of cashed-up investors and flippers, including a couple of bidders who had only seen the property the morning of the auction. A full information pack meant that there were not too many unanswered questions, he added.
The 1970s two-bedroom flat needs more remediation after the 2011 earthquake, so owners will be unable to insure it. Photo / Supplied
Three bidders fought for the house, which has not been occupied for four years. Photo / Supplied
Swift said the buyer was a builder who planned to renovate the house and probably on-sell it. He said there was a good market for these sorts of flats.
The agent said that 13 years after the Canterbury earthquake, there were still plenty of "as is, where is" properties that had not been remediated. He has a pool of some 150 builders on his database who seek out these properties, which have become a bit of a specialty for him.
“There were some people in the mix who would have bought it to live in probably without insurance. There are still people out there who after the earthquake felt that their insurers did them no favours. So, they’re quite happy to self-insure and take the risk on themselves.”
He said the price would be entry level for the popular beachside suburb.
“It’s a family neighbourhood, there’ll be perhaps downsizers or sometimes with these places we get people buying them as a beach retreat. They just want a weekend by the sea.
“It’s always been quite a popular neighbourhood, people who move into the area seldom move out. Prices go to well over a million dollars for a waterfront, modern place,” he said. The city is only 10km away, and the schools and shops of New Brighton and South New Brighton are just up the road.
Harcourts auctioneer Riley Malzard said that to have eight bidders was exceptional in the current market, where one or two per property was the norm.
“It’s like 2021, where we had 95% clearance rate on auctions. Our rate today is sitting at 65%, although today we sold nine out of 12, so 75%, with another under offer already.
“It’s great to see some action heading into this time of year, it kind of forces the market, it’s a good spot to be in,” Malzard said.
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