A classic worst house on a great street, described as the “mother of all do-ups”, sold at auction at the weekend for a mere $380,000 – $590,000 less than its $970,000 CV.
The South Auckland deceased estate in Eugenia Rise at Totara Heights, Manukau, fetched $380,000 on a street where three-bedroom homes are likely to sell in the $900,000s price range.
But that sale price only looks like a bargain on paper, said Harcourts agent Troy Restieaux who brought the property to auction with William Tatana, because of the substantial work required.
The marketing for the split-level three-bedroom home described the bush-clad setting as “adventurous” and said it was not just the birdsong that was going to go “cheep, cheap, cheep”.
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“The three-bedroom 1980s fibre cement-clad home itself is in poor condition and it would be the mother of all do-ups.
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“More likely the astute buyer will appreciate the fabulous location, the demolish and rebuild potential, and relish the glorious, secluded Totara bush setting of 945sqm (as per title) in suburbia.”
Restieaux told OneRoof there were three bidders on auction day. The successful buyers are in the building and construction industry, and will now either have extensive repairs to pay for or make a decision on whether or not to bowl the house and start over.
Restieaux said despite the lovely setting in a good location, the house had multiple big issues.
There was possible asbestos in the cladding and there was water ingress and mold, among other issues.
The 1980s house, built from fibre cement, had possible asbestos, water ingress and mold. Photo / Supplied
“The reality was it sold as an ‘as is, where is’ property and it was in very poor condition.
“I think also because the house is perched over a gully which is on the property I think even just a rebuild will require significant works, but obviously there’s a lot of scope.”
The sale price reflected that whichever option was chosen there was a lot of work to do.
While the 945sqm size of the section looks large, also on paper much of it was not useable, he said.
The house had attracted a lot of interest with thousands of people watching the video online but when people came to view most realised it was beyond their scope.
“Just multiple large issues but to be fair it is a very lovely setting there and it’s quite private and away from the road.”
The location is in a desirable position near the Botanical Gardens, Totara Park and pools, motorways, schools and the mall, and with the house tucked away from the street along a right of way there is plenty of off-street parking.
Despite the home’s issues, there were some other good points with the marketing describing internal character timber features and wraparound patio and decking.
“To complete the rustic charm there’s a classic Shacklock Orion cast iron coal/wood burner range for winter warmth,” the advertising said.
The experienced buyers are figuring out whether the place would be bowled or renovated. Photo / Supplied
Shane Cortese, Harcourts chief auctioneer, said auctions were still the best way to flush out market price whatever the type of property.
Auctions were transparent and played out in front of the vendor, allowing them to make decisions, he said.
“Until someone actually puts in an offer and puts their hand up in an auction room every bit of price feedback is hypothetical; it’s an opinion.
“But when you get that number and someone else gives a number then it plays out in front of you and it’s real.”
Vendors in the current market needed to have a degree of flexibility in the auction room, and to have had a good agent in the run-up to the auction – a good agent is one who does not promise the world but deals in facts, he said.
“The realistic outlook of the owners comes after three weeks of really great intel and feedback. It’s the good agents that are presenting that face-to-face with no sugar coating anything that are making owners happy because they are making decisions based on fact rather than opinion.”
Cortese said last week was a tough week in auction rooms but there were still solid results overall.
He likened the market to a bit like the Melbourne Cup.
“After the Cup, there is always a punter who catches attention because they put a $5 multi bet on and walk away with $50,000 or $60,000. But what hasn’t caught attention is the 1.1 million punters who bet $10 and won $12.50.
“It wasn’t breaking any records but solid – that’s kind of what this current real estate market is.”
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