Why this rundown house sold for a quarter of a million dollars

The detached two-bedroom home in Marshwood, near Bridport in Dorset, had been listed for sale for $17,500.

But potential owners had different ideas as a total of 192 bids brought this figure to a massive $251,250 at the auction on Friday, May 29.

Photos show the home in a run-down state with chipped paint, falling-apart cabinets, and what appears to be black mold growing on the walls and ceiling.

However, auctioneers believe with a full renovation the property could fetch more than $1,250 per month in the rental market.

Sean Roper, of Paul Fosh Auctions, said: “The bungalow, called Farthings, really grabbed the interest of investors and private individuals as soon as we listed it on the Paul Fosh Auctions website.

“And once the online auction opened that interest was replicated in the bidding which just kept on coming right up until the end when the two-bedroom, single-level living property sold for an impressive $233,750 above the guide price.

“Boasting two well-proportioned bedrooms, the property offers comfortable living in a peaceful and desirable setting.

“Set within a prime location, the bungalow, which is in need of a comprehensive renovation both inside and out, benefits from a bright and spacious layout, with ample natural light flowing throughout the house.

“The lot, which comes with off-road parking and a garden, offers significant potential for further development or extension, subject to obtaining the necessary planning permissions, making it an ideal prospect for those looking to enhance or expand.

“Marshwood is renowned for its high property values and strong community appeal, with properties rarely coming to market in this desirable area. Close proximity to a range of local amenities, including schools, independent shops, cafes, and convenient transport links.

“This lot offered those in the market a rare chance to acquire a detached bungalow in a prestigious location with vacant possession for potentially a very good price. Buyers soon recognized the potential offered by Farthings and piled in with their bids.

“For investment opportunities, rental figures are strong. Once renovated to a good standard, this property could achieve around $1,250 - $1,438 per month".

The next Paul Fosh Auctions sale, when some 100 varied lots will be on offer for sale online, starts at 12 noon on Tuesday, June 23, and ends from 2 p.m. on Thursday, June 25.