There was barely a seat to be found in the Bayleys Canterbury auction room last Thursday and one property was to blame for drawing the crowds.
The four bedroom, two bathroom home located in the popular St Albans subdivision in Christchurch was up for auction, uninsured on an ‘As is, Where Is’ basis.
Marketed by licensee Sonia Cameron, the campaign pulled an excess of thirty parties through the doors over a three week period. Auction day saw six bidding parties fill the room with four strong bidders on the day. Once the figure reached over $650,000 the final two bidders kept their hands raised until the hammer went down at $686,000.
“It was a great result for the vendor,” says Sonia. “The property was one of the more expensive ‘As Is’ properties that we have sold but there had been two similar properties sold for a similar price in the area recently,” she said. She explained how the auction has been win-win for the vendor, “they received their insurance pay-out and a great price for the property.”
“In this case, we see that there is a lot of money to be made with these properties”, explains Sonia, who specialises in marketing ‘As Is, Where Is’. “Selling at auction is allowing the vendor to now move on and live their lives post-quake and end up better off financially.”
About ‘As Is Where Is’
Largely unheard of before the 2011 earthquakes, ‘As Is, Where Is’ is a trend which has emerged from the heated real estate market. These properties are earthquake damaged uninsured properties which are appearing on the market
more regularly and with a steady stream of buyers.
Sonia Cameron says, “Vendors have decided they are not going to repair a property or they don’t want to go down the rebuild avenue, so take the cash from their insurer.”
“Effectively they’re selling the land which has an uninsured dwelling on it. Some people are buying them and bringing them up to code and reinsuring them, others are just living in them or renting them out.”