'No problems selling it' - $127,000 derelict Rotorua property draws rush of prospective buyers

The walls are literally crumbling and rain pours through a gaping hole in the roof, but the real estate agent for a Rotorua "project" house says she'll have no problem selling it.

After being listed on Friday for $127,000, a property on Pohutukawa Drive in Rotorua that is optimistically described as a "fantastic value project for investors" has had 15 expressions of interest.

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Real estate agent Kerif Smerdon says the interest from prospective buyers has been intense, with overseas vendors wanting a quick sale and listing the dilapidated property below its capital valuation of $147,000.

"I've had probably 15 calls in the last two days with this thing, and I'm just one of the agents for this property," Smerdon said.

"The vendors live overseas. They wanted it done, finished, gone. Rather than trying to get top price, they wanted it off their hands.

"I won't be listing another house on a Friday. These people are not enjoying their long weekend, ha."

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Smerdon said there is already a buyer under contract for the property that has made an offer "more than the asking price" that has first dibs of the property until this Wednesday.

However, Smerdon said they are still "not confident" this contracted offer is going to go through so they are "trying to get a back-up offer in place".

This looks as if this will not be a problem though.

"We had it online and within overnight it was slapped up on to the NZ property investors Facebook page throwing it out to all the investors," Smerdon said.

The three-bedroom, double-garage property in the suburb of Owhata is in such poor condition it is not safe to have open homes.

"Yeah, viewing is just by appointment because of the hazards in the property," Smerdon said of the 896sq m block.

"It's got a locked gate on it so of course we've got to open it up. But we just didn't want open homes, kids coming, people not being prepared with footwear and what have you -all those sorts of things and people not being prepared.

"There's a lot of broken glass, rubbish, everything all through the grass so we're having no open homes because we don't want people just rocking up and walking around. It's quite a hazard."

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However, Eves real estate agency hopes the property is structurally sound and could potentially just need the interior renovated to become liveable.

"The thing is with this one, although it doesn't look the part, the fact of the matter is anyone coming in, the permit is already done," Smerdon said.

"We're suggesting everyone gets a builder's report. I'm not a builder.

"I don't know structural-wise where it sits because there is a hole in the roof as well and it's been vacant for three years, so we just don't know at this point until we see some reports. It could be just fitting out the interior or it could be a little bit more.

"With water pouring in for three years I imagine there's going to be some damage to the flooring, I don't know."

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The online listing urges buyers to view the property as a "fantastic-value project".

"This property is not for the faint hearted, but for those with know-how, you are on to a winner here. Bring your hard hat, your tools, and some sturdy footwear and get your due diligence done quickly as this property will not sit around for long!"

Smerdon also admitted she had never sold a property in such poor condition.

"It's not typical by any stretch. There's always going to be properties that have a few holes in the wall, or not presented well, but there's a lot of properties that all need the same thing," she said.

"Just some are presented better than others. You know there might be a house with all its walls.

"No, this one is outside of the box. Rotorua isn't full of properties like this."

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