Auckland property goes under the hammer with $1 reserve

One lucky bidder could get a foot on Auckland's elusive property ladder for mere pocket change, as a Manurewa home goes under the hammer with a $1 reserve.

The vendors are confident the risky move will pay off, says Ray White real estate agent Pat Lapalapa. The current owners "have full confidence" the allure of the $1 reserve price will drum up enough interest at Wednesday's auction to spark a competitive bidding war, with 94 people visiting the home during week two of the campaign. 

Any prospective homeowner who attends tonight's auction could be lucky enough to walk away with the property for loose change, Lapalapa said - with no catch.

"We can't advertise a $1 reserve without having a $1 reserve," Lapalapa told The AM Show. "The most common question I keep getting asked is, 'How much are they wanting?' There's a $1 reserve on there, so a dollar will do. If you can pay more, that will be great.

"Anyone who turns up today could be lucky."

Lapalapa confirmed there is no clause in the contract safeguarding the owners, acknowledging "that is the risk that you take with a $1 reserve".

Early bidding has kicked off on social media, with pre-auction offers of $1.50, $4 and a generous $14 - 14 times the reserve. 

"It is promising, we've probably had close to $50 as well. They've come through social media and I've asked them to come through to the auction and try their luck. Can't win the Lotto without buying a Lotto ticket," Lapalapa said.

A bedroom of the property.
A bedroom of the property. Photo credit: Ray White

"We're going to try and create a bit of a bidding war... they've seen how buyers have been in the current market, especially post-COVID. They do have confidence in us."

The 90m² home, set on a 600-sqm, fully-fenced freehold section, has a capital value of $530,000. It has three bedrooms, one bathroom and a double garage.

According to its listing, the property is being aimed at renovation enthusiasts, investors or first-home buyers.

"With huge upside potential, you want to take advantage of this property, you'd get instant equity after renovation or better yet realise the profit margins to be made and make bank," says the listing.

"Well located near shops, schools and public transport routes. Easy access to all amenities as well as Manukau City & Clendon Shopping Centre."

The kitchen.
The kitchen. Photo credit: Ray White

Features include ceiling and underfloor insulation, an electric stove, Kent-style fireplace and electric hot water. 

"We have a few registered buyers... we've got more than three," Lapalapa hinted. "I've been through the auction process, if registered buyers actually turn up is a different story.

"I'll leave it up to everyone else to come to the auction and find out for themselves."