Our First Home property sells for more than $700,000

The first of three houses from reality television property show Our First Home sold at auction last night for more than $700,000.

The three-bedroom Avondale house went under the hammer at a live auction on TV One, after 10 weeks of renovation work.

The final sale price of $720,500 saw the Gourley family, originally from Tauranga, bank a $143,500 profit - setting an "impressive" benchmark for the other families, TVNZ head of content Jeff Latch said.

Image 1 of 23: The Gourley's kitchen before renovation.

"We really want all the families to benefit from their hard work, so it's great to see it's paid off so well for the Gourley's," he said.

"It's an incredible start to Our First Home's Live Auction Week, and the Gourley's have certainly thrown down the gauntlet to the other families."

But the family may not walk away with the full $143,500 if the Inland Revenue Department follow up and demand they pay income tax on the profit.

The family could be liable for 33 per cent tax on the profit made at last night's auction, which would see them forced to handover $47,000 to the tax man.

The Gourley family - Al and Anne Gourley, their daughter Amy Kim and her husband Matt Kim - were thrilled with the result.

"We're incredibly blown away. We felt the house was worth it and are glad that buyers have agreed," they said in a statement issued by TVNZ.

"We are really humbled by their confidence; we hope we've shown that you can take an ordinary bungalow and turn it into something special.

"We've had amazing support up and down the country and we want to thank everybody who supported us."

The family who makes the biggest percentage gain at auction will take home the additional $100,000 prize for their kid's first house deposit.

The Gourley's added 24.87 per cent of value to their property.

Tonight, the Schreuder family will watch as their three-bedroom home in Titirangi goes under the hammer.

The final home to go to auction will be the Wardlaw's Te Atatu property on Tuesday night, when the winner of the $100,000 prize money will also be announced.

• Our First Home's Live Auction Week continues on Monday and Tuesday at 7.30pm on TV One.