In a surprising turn of events, homeowners in Māngere East, Auckland, are taking a massive gamble on their property. After previously rejecting a $725,000 offer, they’ve listed their classic brick and tile home for a $1 reserve auction.
The three-bedroom, one-bathroom house first went to auction in January, but bidding stalled before reaching the undisclosed reserve price. Now, a change in circumstances has forced the owners’ hand. According to Ray White agent Tom McCartney, “They just need a result” and are hoping the $1 reserve strategy will attract a pool of enthusiastic buyers.
This strategy is a high-risk move. While it could spark a bidding war driving the price above the rejected offer, there’s also a chance the property could sell for a significantly lower amount.
The owners’ decision stems from a shift in plans. They initially purchased the property in February 2021 with the intention of developing the sizeable 706sqm section. However, those plans to build five two-bedroom houses have been scrapped, leaving them solely focused on selling.
This unconventional auction approach is sure to grab attention. Whether it results in a windfall or a regretful sale remains to be seen.
