A waterfront bungalow on the Whitsundays that was auctioned without a reserve price has been sold for more than double the owners' anticipated price.
The property, which had the potential to sell for just $1, was sold to a local business owner for $120,000 on Monday night.
Marketing agent for Ray White Whitsundays Steve Marks said it was a fantastic result, which was above and beyond expectations.
“We had over 70 people enquire about the property and we had 20 registered bidders. We had bidders from every state in Australia, which is quite unique,” he said.
“We had an offer on day one of the auction of $50,000. The owners trusted us to take it all the way, and we got $70,000 over what their expectations were.
“We got a good result. It just shows motivation. It shows the sellers are selling and there’s no risk of not getting a result, so buyers can come with an understanding they can buy it at the price they want - there’s no reserve.”
The bungalow is located on Long Island, which lies halfway between the Australian mainland and Hamilton Island in Queensland’s Whitsunday Island Group, and is close to pools and resort facilities.
For the past 10 years, Palm Bay was managed by Peppers Resort, but has recently changed management.
Mr Marks told Real Estate Business earlier this month that the bungalow was being sold without a reserve as there had been no pre-sales to base a price on.
“We couldn’t fairly put a reserve on it that would relay to the marketplace the urgency of the sale. The owners really want to sell it," he said.
“The best way to do this was to be completely organic and let the market decide the price.”
Although the price appeared to be very cheap for a waterfront property, Mr Marks noted that the sale was only for the 45-square metre hut.
With the success of the no-reserve auction, Ray White Whitsundays have scheduled another no-reserve auction for a property in Abell Point Marina on December 9.