As is. Where is.
I've just sold the roughest property I've ever listed. It was a mess. Contaminated, right next to a massive power pylon, damp and mouldy, totally trashed and full of all sorts of rubbish and rotten food. And did I mention fleas?
It was so bad, even after it had been cleaned up, we had to issue health and safety warnings. People had to leave their shoes on to visit the property and we couldn't allow children on site unsupervised.
But the amazing thing? It was my busiest listing in October/November.
People came in droves to the open homes, and we had competitive bidding at the auction.
People sniffing a bargain? There was definitely some of that.
Good bones? It certainly has potential to add value.
But, I think it was more of a reflection on the lack of options available for first home buyers at the moment. Combined with squeezed margins for investors looking for value-add in a plateauing property market.
I'm seeing it more and more.
First home buyers willing to take on a big project just to get on the property ladder. It's still pretty tough out there for them. Several buyers even missed out on this property because their bank was too risk averse to lend the money for it.
What's the solution? Unfortunately, there's no silver bullet. Increased supply would help. Higher wages. More flexible lending. The list goes on...
But, if you, or someone you know, is desperately trying to get on the property ladder – my advice – keep trying.
It'll be worth it in the end.
The buyers of this property are stoked. They may have a long road ahead fixing it up, but they have a clear vision of how it will finish up. Good on them!
Rodney Fong is a Licensed Salesperson and Auctioneer working with clients throughout Tauranga, Mt Maunganui and Papamoa.< Back to Blog Articles