Owners list home worth $1m with shock auction reserve

The owners of a home in Auckland worth $1 million have taken the unusual step of listing the property with a surprisingly low auction reserve price.

The four-bedroom home at 28 Pecan Place, Avondale is being marketed with a reserve of just NZ$1 or 90 cents in Australian currency.

Ray White selling agent, Dushen Mallimaratchi acknowledged the low reserve would grab the attention of buyers, but said it was solely the owners’ choice.

“The owners want to get out of the Auckland market,” Mallimaratchi told Domain.

“They pretty much want the market to decide the price of the property. There’s no other way to express how motivated the owners are to get a sale.”

Another reason for the low reserve is to level the playing field for buyers. 

“That’s the reason we’ve done it this way and so everyone has a fair and equal chance to have a crack at it,” he added.

The home boasts a master bedroom, two large bedrooms and a flexible separate space that could be used for a study, office or even nursery.

There are two full bathrooms, including a master ensuite, and an extra toilet.

“Whether you’re looking for your first home, a base in the city fringe, or your next smart investment, be it a rental or an excellent choice for an Airbnb, you simply can’t go past this fantastic opportunity to secure this spacious and solidly built home,” the listing reads. 

“Nestled in a quiet, secure, and well-maintained community in the heart of Avondale, which offers you the perfect blend of comfort and ease.”

The estimated value of the home is between NZ$933,000 and NZ$1 million.

Mallimaratchi has been in talks with the owners – who live in New Zealand’s South Island – since last year.

He had been brought in to advise them on the sale. At the time, the home was in less than perfect condition after a period as a rental.

“When we actually went through the property it was pretty run down. I don’t think there’s regular maintenance carried on on the property,” he said. 

“So there were broken bench tops, the carpet needed changing and the walls needed painting. It just needed a freshen up.”

He suggested the owners sell the house as is. They had other ideas.

“We pointed it out to the owners and the owners were like, ‘Hey, look, if someone was to buy it and move in, we want them to buy and move in without having to worry about doing all the work’,” he said.

The owners, who bought the home in around 2005, reportedly spent more than NZ$50,000 ($45,000) on renovations.

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