Fire-damaged home at 1 Mansfield Rd, Benalla sparked a 30-bidder frenzy after going to auction with a $1 reserve, eventually selling for $98,000.
A fire-ravaged Benalla home listed with a $1 reserve has sparked a 30-bidder frenzy, eventually selling for just $98,000 as bargain hunters piled in.
More than 30 buyers registered for the gutted property at 1 Mansfield Rd, with the auction quickly turning into a chaotic scramble for one of the state’s cheapest homes.
The four-bedroom house, which has sustained extensive fire damage and is considered likely beyond repair, was sold strictly as-is with no internal access offered to buyers.
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Listing details warned the structure would most likely require demolition, with the sale pitched as a high-risk, high-reward opportunity for builders, investors or buyers willing to start again.
The eye-catching result comes as Melbourne’s auction market faces a key test, with PropTrack data showing a 59 per cent clearance rate from 580 reported results, including 340 sales.
1 Mansfield Rd, Benalla – for herald sun real estate
Collapsed ceilings and charred beams highlight the scale of destruction inside the gutted home.
First-home buyers are increasingly capping their budgets, with many now targeting the $800,000 mark as borrowing power tightens under rate pressure.
Ray White Victoria chief auctioneer Luke Banitsiotis said the Benalla result showed how unpredictable auctions had become when buyers sensed an opportunity.
“A declared reserve auction of $1 for an unlivable home saw over 30 registrations, eventually selling for $98,000,” he said.
He said strong competition was still evident elsewhere, pointing to a Clarinda home that attracted five bidders and ran for almost an hour before selling for $1.05m.
Sections of the home have been reduced to framing, with severe fire damage visible throughout the structure.
Debris and damage fill the bedrooms, reinforcing expectations the home will require demolition.
A Dromana land sale also drew three bidders and reached $1.005m.
Mr Banitsiotis said vendors who priced their homes correctly were still being rewarded.
“The theme of the day has been that those who have listened to the market and set realistic expectations have been richly rewarded at auction,” he said.
Belle Property Rosebud and Dromana agent Jarrod Eastwood said buyers were adjusting rather than retreating.
“I think buyers are mostly just getting on with it,” Mr Eastwood said.
The kitchen remains coated in soot, with appliances and cabinetry heavily impacted by the blaze.
1 Mansfield Rd, Benalla – for herald sun real estate
“They’re factoring it in with what they offer, or maybe they’re borrowing a little bit less now, but overall they’re still active.
“When properties come up that they really want, we’re still seeing them move and we’re still seeing property sell.”
Mr Eastwood said demand remained strongest in the entry-level segment, particularly between $800,000 and $1m.
Ray White Ringwood chief executive Chris Watson said the market had absorbed recent rate rises but faced a bigger test ahead.
The property was sold as-is with no internal access, leaving buyers to assess risks from limited information.
Smoke and fire damage extend into wet areas, with the bathroom left in poor condition.
“We were expecting rises this year anyway,” Mr Watson said.
“They’ve probably come a bit quicker than people thought, but overall I think the market is holding up OK.
“The real test will be spring, when more stock comes onto the market.”
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