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Cheapest Home In New Zealand

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  • Cheapest Home In New Zealand


    Would you like the opportunity to own a 4 year old home, with 4 bedrooms, 2 bathrooms, 3 living rooms, and with 3 car garaging, that has a 2007 Christchurch City Council Valuation of $594,000 for as little as $100 ?

    A Christchurch real estate agent has come up with a great way of marketing and selling his home. Premier Realty Ltd, managing director Brad Maxwell (a 25 year veteran of real estate explains).

    Home affordability has become a major issue for most people around the world. Now for the cost of just NZ$100, you can purchase a seat in the company’s online auction room, and bid for this home.

    But this is an auction with a unique difference, you place your bid based on what you think will be the LOWEST bid, and if you are the ONLY person to bid that amount, you will own the property, freehold. THE LOWEST INDIVIDUAL (UNIQUE) bid, buys the home at that price, and all bids must be between $0.01 and $1,000.

    So you could be the successful bidder of this home for the cost of your seat in the auction rooms, ($100) plus the amount of your bid.

    Like all auctions there is a reserve, which is based on the minimum number of seats to be sold in the auction room.

    For instance the seller sets a reserve of say $400,000 for their home.

    The cost of a seat is $100, so there is a minimum number of seats available of 4,000.

    Once the minimum number of seats have been sold ie 4,000, the property will be sold.

    (if the minimum number of seats are not sold, say only 2,000 seats are sold , the seller reserves the right to cancel the auction, and the bidders will receive a full refund of their purchase costs of the seat), or if it is close to the minimum say 3950 seats are sold the seller may elect to proceed with the auction.

    There will be a limit to the number of seats sold over and above the minimum number.

    The bidders by 1 or more seats in the online auction room at $100 per seat.
    They can purchase 1 seat or 100 seats. For each seat purchased the owner of the seat can make a bid – based on what they think the lowest bid will be.

    For example the bidder may bid say $1.56. when they place the bid it is locked in to the system. (No other bidder see’s or knows what the other bids are).

    If this is the lowest individual (unique) bid, they win the auction and own the home outright, for the total cost of their seat ($100) plus the bid amount ($1.56), a total of say $101.56 could be all you’d pay for the home.

    This could be the cheapest way of buying a property ever.

    There is no risk to the potential bidders, as they are guaranteed a full refund of their seat purchase if the minimum number of seats for sale is not met, and the seller withdraws the property from sale.

    The successful LOWEST bidder, will receive the title to the property upon payment of the bid price, and vacant possession of the property. They may of course decide to sell the property for a profit.

    The first property to use this method is situated at 4 Willowview Drive, Redwood, Christchurch, has a Christchurch City Council 2007 Rateable Valuation of $594,000.

    (This would be a fantastic home for a little over $100).

    Statement Released by Brad Maxwell Managing Director and Auctioneer
    Premier Realty Ltd MREINZ, 356 Main North Road, Redwood, Christchurch.
    PH: 03 352 0134 or 027 614 5178, Fax 03 352 0152
    email [email protected]
    Last edited by donna; 19-01-2009, 03:37 PM.

  • #2

    Am I missing something though? After the minimum number of seats are sold to achieve the reserve or close to it all you would have to bid is 0.1 cent and that would be the lowest bid. But it wouldn't be unique because everyone would do it.

    Or do you keep discarding the common lowest bids until you get to the first unique one?

    Who audits the bid count to find the lowest unique bid at the end of the auction?
    Last edited by outspoken; 18-01-2009, 08:01 PM.


    • #3
      This sounds more like a lottery than an auction....


      • #4
        Yeah I thought that after I posted too Judge.

        Does the vendor have to disclose any interests (as in seats bought) or assosciated parties?


        • #5
          If there are say 4,000 bids of which 3,995 are for 1cent, 2 for 2cents, 1 for 3cents, and 2 are for 4 cents, the winning bidder will be the one who bid 3 cents as he/she was the lowest individual (unique) bid.

          The system identifies the lowest unique bid, all bids are locked in by the bidder, and the results of the auction, is confirmed by the Independant Auditors, and will be made available to bodies such as Commerce Commission or Internal Affairs.


          • #6
            The vendor nor any member of their family, are not permitted to purchase seats, nor any member of the auctioneers real estate agency.


            • #7
              Who developed the system and are there checks to make sure a programmer has not hidden some codes that allow him/her to view the bids and be able to put in a bid just before closing?


              • #8
                The system is developed inhouse and the codecs are secure the bids are locked in by the bidder and only the auctioneer has access to the part of the system with a double level security.


                • #9
                  Have the codes been independently audited and all network traffic going to be monitored and logged?

                  Sorry to sound like an a-hole, but this online system seems like a prime opportunity for someone to take advantages unfairly...


                  • #10
                    At this stage security is paramount all ip address's logged, email address's have to be verified, and we need contact address's and so far we do not appear to have any concerns, but thank you for the warnings


                    • #11
                      Payments for seats have to be by way of electronic transfer before a bid is placed so if we have problems we have bank details as well


                      • #12
                        The way that NZers take to lotteries they will probably get a million dollars for the house. If I had visibility of how many entries there were and how many entries each participant placed, I think I would have a pretty good chance of beating the odds.


                        • #13
                          Well done Popeye on your creativity and innovation to deal with the current tough property maket.

                          Have you confirmed with the Lotteries commission that this is NOT a lottery? It seems to meet the requirements of a lottery except the successful buyer has to actually pay a bit extra to achieve the purchase (only up to $1,000).

                          If it is not a lottery and you are successful in selling then I reckon you have just created an innovative new way to sell properties!

                          Good luck with it.
                          Last edited by kieran; 18-01-2009, 10:14 PM.
                          Kieran Trass


                          • #14
                            Bids between 0.01 and $1,000 someone's going to get a very cheap house, going to try and get it on Campbell Live or Close Up...... TRY YOUR LUCK MATTNZ, buy 100 seats cost you $10,000, win the house, sell it for $20,000 double your money overnight...
                            Last edited by popeye; 18-01-2009, 10:15 PM.


                            • #15
                              Because people have to buy a seat for the auction room and then BID, and then pay the bid price my legal team said it had all the elements of an auction, not a draw (lottery).

                              Same as bidding online at trademe or ebay, there is a bidding process not a draw.