A US couple were left red-faced after accidentally buying a $US25,000 ($A39,000) “dirty alley” at auction for what they thought was a bargain home.
JJ Hollingsworth and Alemayehu Mergia, from San Francisco, were overjoyed when they received a letter from the local tax collector’s office, informing them that a property at 1926 Kirkham St would be auctioned off for as little as $US1 ($A1.50), after the owner stopped paying their taxes, Realtor reports.
The couple, who live in the home next door, seized the opportunity to put in a bid on what they thought was a two-unit rental property, which had most recently sold for just over $US1 million ($1.5 million) in December 2024.
They scrambled to put in what they believed to be a fair bid on the home, having initially ignored the letter informing them about the auction.
However, on the final deadline day for registering interest, they made the decision to throw their hat in the ring for the sealed auction, submitting a cashier’s check for $US25,000 ($A39,000), as well as an additional $US8,000 ($A12,000) check for the transfer tax.
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A San Francisco couple who thought they had purchased a $US1 million home for just $US25,000 in an auction were horrified to discover that they had actually bought a “dirt alley” next door. Picture: Realtor
JJ Hollingsworth and Alemayehu Mergia believed they were bidding on a $US1 million property at 1924–1926 Kirkham St. Picture: Facebook
“We would always regret it if we didn’t. Wouldn’t you?” Ms Hollingsworth told The San Francisco Standard.
“Wouldn’t you wonder what could have happened.”
Their initial elation at discovering that they had won the auction quickly turned to shock and horror when their transfer tax check was returned, prompting them to read the fine print just a little more closely.
As it turns out, the couple had not purchased the house that sits at 1924–1926 Kirkham St.
Instead, they had bought a 25-metre by 2-metre long unpaved track that runs between that property and their own home.
Upon reading the tax collector’s letter more closely, Ms Hollingsworth and her husband realised that they had missed several key pieces of information, namely a line in the memo that stated the auction was for the sale of plots that had been “rendered unusable by their size, location, or other conditions.”
The couple discovered they are now the owners of a dirt track that runs alongside it. Picture: Realtor
Horror soon mixed with humiliation, the composer revealed to CBS News, admitting that, by the time they realised their mistake, they had already celebrated the purchase of their new home with friends and family — and even stopped by the property at 1924–1926 Kirkham St. to inform the tenants they had new landlords.
“It was devastating,” MS Hollingsworth admitted. “It was absolutely devastating.
“We had already celebrated and told our friends. I went over and said, ‘Hey, I’m your landlord now. We’re not going to kick you out or raise your rent.’”
To add insult to injury, the couple paid far more for their alley than any other bidder had offered in the auction, which featured multiple parcels across the city with similar restrictions.
According to the Standard, 47 plots were offered in the sealed auction, and about half of them were sold — four for just $US1 ($A1.55) each.
The rest were auctioned off for between $US10 ($A15) and $US11,000 ($A17,000).
The median sale price in the auction, if the couple’s bid were omitted, was just $US435 ($A667).
The couple said they are now attempting to get their money back.
However, the only way that they can do that is if the Board of Supervisors votes to overturn the sale, something that the Standard reports has been done only once in the past.
Failing that, Ms Hollingsworth said she and her husband are willing to pursue further legal
action, telling the outlet: “I don’t pick fights. … I fight, but I don’t pick ‘em.”
The 25-metre by 2-metre long unpaved track that runs between that property and their own home. Picture: Google Maps
Still, the tax collector’s office is adamant that it did everything it could to make clear exactly what property was being offered in the auction.
Amanda Kahn Fried, chief of policy and communications, told CBS News in a statement: “The Office of the Treasurer & Tax Collector conducts sealed bid property sales in strict accordance with state law and local procedures.
“Each parcel offered for sale is fully described in the public notice, including an accurate parcel map and clear language noting that the parcels are small, irregular, or otherwise unsuitable for development.
“In this case, the parcel in question was correctly identified, depicted, and described in all materials provided to potential bidders.
“We also conducted additional outreach, including written notices and opportunities for bidders to ask questions prior to submitting bids.
“While we regret that any bidder may have misunderstood the nature of a parcel, the City cannot assume responsibility for errors that result from a bidder not reviewing the publicly available materials carefully.”
The couple are at a loss for what to do with their very expensive dirt track. Picture: Realtor
For now, the couple are at a loss for what to do with their alleyway, which runs next to their existing home and is currently used as a fire lane, according to signage posted at its entrance.
Other similar lots have previously been purchased by homeowners with adjacent properties and then used as garages, or for an extension of their existing garden.
However, Ms Hollingsworth and Mr Mergia say their garden is already plenty big enough.
While they could close it, or even charge their neighbours to use it, they admitted they’re reluctant to do so because they don’t want to make “enemies” in their local community.
In the meantime, they have renamed the street “Hollingsworth Alley” and are trying to find humour in their situation.
Parts of this story first appeared in Realtor and was republished with permission.
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