A South Auckland home that was burnt to a crisp is heading to auction at the end of the month.
The three-bedroom property at 2/43 Derrimore Heights, in Clover Park, was originally listed as a mortgagee sale at the end of last year but was pulled after a series of suspicious fires broke out at the property.
Ray White listing agent Rubal Singh said the second-tier lender had taken possession of the property at the end of last year and enlisted him to sell it.
The house had been vacant and was on the market when a fire broke out in early January.
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Less than a week later and a day before open home, another fire took hold and the property incurred significant damage.
Singh said the second-tier lender, who was the mortgagee, pulled the property from sale while they considered their options and whether to claim insurance.
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“They decided no they don’t want to do anything with insurance. It’s a loss anyway to the mortgagee and they will just write it off in their losses pretty.”
The house was relisted this week with the updated listing photos showing broken windows, singed walls and ceilings, and melted gutters and downpipes.
Singh hadn’t seen any documents but had been verbally told the damage wasn’t structural so the property could be rebuilt.
The house is being marketed as a “diamond in the rough”, with Singh saying it would appeal to builders, traders and renovators with the right expertise.
“Property investors probably want to do it up and keep it as a rental. And some people would want to completely demolish it and build a new house on it. There could be multiple options,” he told OneRoof.
The property could be repaired as the agent has been told the damage does not appear to be structural. Photo / Supplied
While the agent has in the past sold two fire-damaged homes and dealt with mortgagee sales, this was the first time he had a property that embodied both sets of unfortunate circumstances.
“This is a fire damage and a mortgagee so it’s like the worst-case scenario and it seems like people love it.”
Within 24 hours of the property hitting the market, he had already had about 10 enquiries from people interested in it.
He said the property appeared to be popular with people looking for a deal or if they thought they could make a “quick buck” from it.
The cross-lease property has a CV of $850,000, but Singh said it was impossible to give a price indication given it was both fire-damaged and a mortgagee sale.
The house was on a good, quiet, no-exit street in Clover Park / Manukau Heights, he said, which was close to motorway access and the Manukau shopping centre.
Earlier this year a partially burnt down home on Paul Crescent, in Fairfield, Hamilton sold for $332,500 – almost half its RV of $550,000.
The property failed to sell in 2022. A fire broke out just before Christmas last year when it was unoccupied.
- 2/43 Derrimore Heights, in clover Park, Auckland, goes to auction on July 31
