$1 house sells for $395,000

[essence]

Sunday News | Sunday, 01 June 2008

A three-bedroom home which had $1 reserve has been sold at auction for $395,000.

The west Auckland house, complete with a partly-finished self-contained flat and sitting on a 1012sqm section, went under the hammer yesterday afternoon.


Read the rest of the story here

[Green Fish]

Great marketing by the agent and the owner, for a very successful outcome.

But anyone who actually believes that there is really a $1 reserve is fooling themselves. There will always be a nominee bidder out there.

[essence]

Originally bought for $400K

This property was purchased on 18/5/08 (one year ago, almost to the day) for 400K.

Doing some very quick and rough calculations - now sold for $395K, advertising $4K(?), REA Commission $15K - vendor lost $24K on purchase price of 07.

[JohnL]

On the TV news they also mentioned he had spent quite a bit on the property so the loss was much larger!!!

John

[tim360]

The vendor spent about $50k renovating according to the TV news. The agent seemed pretty reluctant to promote this sort of auction, considering the publicity it generated I'd have thought he'd be loving it.

[princess]

Publicity on a process that delivers a $75k loss is definitely something they could live without :-)