No reserve auction: Could someone pick up this Auckland house for free?

The owner of a three-bedroom brick and tile house in South Auckland could be giving away their home for free when it hits the auction block on Saturday.

So committed is the vendor to selling 2 Carisbrook Crescent, in Papakura, that they’ve agreed to a “no reserve auction”, which means a deal regardless of the sale price outcome.

Harcourts auctioneer and listing agent Dan Hewes told OneRoof that he had been in the business for 33 years but “this is the first time I have come across one like this”.

He said there was no reserve set for the property because the vendor “wanted to send a clear message to the market that he is seriously selling”.

Read more:

- Auction record smashed: Buyers pay $12.8m for mansion they saw just 24 hours earlier

- ‘Pull down’ deceased estate picked up for $412,000 after three-way auction fight

- Tony Alexander: Ignore the screams - there won't be any more rate rises this year

Most properties go to auction in New Zealand with a set reserve – the price at which the vendor is willing to sell. Auctioneers typically keep the reserve under wraps until it has been met, but some properties do go to auction with declared reserves, some as low as $1.

However, “no reserve” auctions are a rarity, and are often associated with properties that have significant flaws.

That’s what makes 2 Carisbrook Crescent a standout, said Hewes: it’s a solid, low-maintenance brick and tile home. “You know, it’s pretty bulletproof, a pretty solid sort of house for someone to get into.”

Another highlight is the reserve across the road. “It’s quite nice to be looking over the reserve rather than, you know, houses, roofs or whatever,” Hewes said.

Hewes said the owner was selling because they were wanting to pursue a personal project.

“He’s not one of these people that are just testing the market to see what the market says.

“He’s selling it, that’s it, you know.”

The 145sqm house sits on a 451sqm section and has a 2021 CV of $850,000.

The owner of the three-bedroom home is, according to the agent, committed to selling. Photo / Supplied

While properties that are advertised with ultra-low or no reserves run the risk of selling for an extremely low sales price, Harcourts national auction manager Shane Cortese said most generally end up selling at market value.

“The no reserve options generally get to where they should be in the market. You tend to have more bidders because people are expecting to get a bargain,” he told OneRoof.

Cortese said low-price marketing strategies were aimed at “flushing out the cash buyers and determining where the value of the property is in the current market”, although they were a bit of a risk “because you’re not in control of a reserve price”.

He said recent sales figures indicated quick wins for vendors who were meeting the market, with deals taking longer for those whose expectations were above current buyer sentiment.

“We are certainly calling a number of auctions, and in many cases giving the vendors the opportunity to sell,” he said.

Hewes said 2 Carisbrook Crescent was definitely going to sell on Saturday. “I think that it’s a bit of a unique situation, you could say a perfect storm. I suppose with a vendor who really wants to sell and needs to get on with it. And yeah, someone could get a real bargain.”

17A Greenhithe Road, in Greenhithe, Auckland, is being auctioned with declared reserve of less than $1m. Photo / Supplied

Last year, several properties went to auction with $1 reserves in a bid to capture buyer attention, the most high profile of which was the sale of a beachfront home in the Coromandel.

The Thornton Bay property, which had been damaged in the extreme weather that hit the region in early 2023, ended up selling for $375,000 at a busy auction in October.

OneRoof has also seen several properties hit the market this year with declared reserves. A deceased estate in Auckland’s Mount Albert sold under the hammer for $742,000 last week after going to auction with a declared reserve of $699,000, and a two-bedroom home at 17A Greenhithe Road, in Greenhithe, goes to auction on March 26 with a declared reserve of below $1 million.

- 2 Carisbrook Crescent, in Papakura, goes to auction on March 9