Property put to auction with $1 reserve sells

PHOTO: Auction. FILE. Royalty Free Photo

According to STUFF a Palmerston 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.

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.