A unit owner has made the “ballsy” decision to go to auction with no reserve, putting faith in the Sunshine Coast’s over-heated property market.
The risky move means technically the property could be sold for as little as $1 but in reality is likely to attract a higher price, according to agent Client Jensen from Harcourts Noosa.
The humble brown brick unit at 6/18 Camfield Street, Alexandra Headland, is situated in the so-called ‘golden triangle’.
Mr Jensen said taking the two-bedroom, one-bathroom unit to auction without a minimum price happened extremely rarely because the stakes were too high.
“It’s a ballsy move because if no-one shows up the property could sell for a $1,” said Mr Jensen.
“(No reserve auctions) pretty much never happen, no-one does them because there’s a risk.
“Imagine if you have a million-dollar house and there’s a possibility it could sell for $1, or $100 or half a million dollars.
“People just don’t want to take the risk. She’s trusting the strong market at the moment.”
Mr Jensen said the unit owner, a journalist, was after a quick sale so she could buy another place to live in Longreach where she was based.
Initially the house was to go to auction but the marketing campaign has since been updated to reflect the decision to remove the reserve.
It last sold for $315,000 in 2016.
Leading Sunshine Coast auctioneer Gordon Macdonald, a columnist with Sunshine Coast News, said the current national auction clearance rate of 84 per cent meant the property was likely to achieve a good price.
Mr Macdonald said a no-reserve auction seldom occurred but with a good marketing campaign could draw massive interest from a wide range of buyers looking for a bargain.
“At this stage in the current market there’s very little risk if it’s done well and marketed properly,” he said.
“It will get a lot of attention and buyers will go there with all budgets and have a crack.”
But even in a subdued market like the Global Financial Crisis (GFC), Mr Macdonald said a no-reserve auction would garner plenty of interest for the same reason.
He said such an auctioned required an auctioneer with a “good ear” who could handle the big crowd and competing bids.
