- A South Auckland home is being auctioned less than 24 hours after it hit the market.
- The owners need to avoid their lender taking possession on Friday.
- Agent's team had to spring into action to get the property ready for sale.
A South Auckland home is heading to auction today - less than 24 hours after it was listed.
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The stressed owners of the three-bedroom house at 16 Hardie Street, in Mangere East, are trying to sell before their lender takes possession.
They hastily brought forward their plans to auction the home in January after learning that the finance company was going to foreclose on Friday
They've even declared on their listing they are willing to sell for as low as $600,000 in order to get a deal. “This owner has 1 DAY to BEAT THE BANK!” says the listing on OneRoof.
The property had been renovated but the owners got into financial difficulty. Photo / Supplied
Ray White agent Bob Lemalu told OneRoof yesterday that he got an urgent call from the vendors' lawyer the night telling him he needed to accelerate their plans. “Last night we got the call that it needed to go before Friday.”
Lemalu said the owners couldn't keep up with their loan repayments because of higher interest rates. Their lender, however, had refused their request to refinance their loan one more month.
“Unfortunately, they couldn’t get the finances together to extend their loan. The lender is now saying they will take possession on Friday," he said.
The agent's team then scrambled to get the listing live yesterday afternoon. They arranged a photo shoot and then hit their phones to let their database know the house was up for grabs. “We are up against it,” he said, adding that he had already held two open homes before speaking to OneRoof.
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Lemalu said the $600,000 reserve was a “great deal” and would be enough for the owners to repay the mortgage and cover costs.
The home has a 2021 CV of $1.1 million but similar homes in the area have been selling around $700,000. “We have no time for price by negotiation or offers - we just have to take it to auction straight away. They need an unconditional result,” Lemalu said.
The recently renovated home was “pretty tidy”, he said, and would suit both families and investors.
“It’s in good nick and there’s a double garage. Big yard, big section, good location. A family could easily suit that and also investors,” he said, adding that the rental appraisal was about $700 a week.
“Whoever comes today – the family is in no two minds, they know what is ahead of them and the risk associated but at the end of the day, they just don’t want to lose the house to the lender."
The house would appeal to families and investors alike, according to the listing agent. Photo / Supplied
Lemalu said the owners were worried the second-tier lender would sell the house for less than their total debt and chase them for any shortfall.
Listing and holding an auction within one day was certainly unusual. “The shortest I’ve had is two weeks,” Lemalu said.
Ray White head auctioneer Sam Steele said the turnaround was the quickest he had ever seen. He said there were plenty of properties that had their auctions brought forward after receiving offers within a day or two of appearing on the market, but there was usually a longer lead time to get to that point.
"Anything under a week is really fast, but certainly to do it in 24 hours is incredibly fast," he said. "At this time of year, people are very keen to get deals done so it should work in [the vendors'] favour."
- 16 Hardie Street, in Māngere East, Auckland, goes to auction on December 12 at 1pm
