PHOTO: Auction. FILE. Royalty Free Photo

According to STUFFPalmerston North property put up for auction with a $1 reserve has sold for $400,000.


SPONSORED: Looking for a real estate database from $99 plus gst? | SALE

Owner James Faber said there were scary moments when bidding seemed to stop at $350,000, but he was happy with the final result.

“It sped up really fast, someone was really excited to throw the first bid out at $100k, and it went reasonably well until $200k, then slowed right down.

“I think there were a few serious bargain hunters only in the room.”

The property was valued at $480,000 by CoreLogic when Faber first listed it about six weeks ago, which he agreed with.

The $80,000 reduction, which equated to about a 17% fall, was fairly typical of how the market had moved since, Faber said.

First-home buyer

Profile a Property FOR SALE – UNTIL SOLD | $99 plus GST

“In the last week or two I’ve seen similar comparable properties pop up in the kind of $395,000-plus price point, so those sorts of things were things that got me really stressed about where this might go,” he said.

Faber said a $1 reserve was a valid sales method, and while he would not rule out using it again he would not do it again in the current market.

Downtown shopping centre

Downtown shopping centre in Palmerston North | FOR SALE