Property for sale listed on Zoopla for £22,000 – why is the three bedroom house so cheap?

A property for sale has been listed on Zoopla for £22,000.

The three bedroom end terrace house is on Newcomen Street, Ferryhill, County Durham.

It has been listed an as investment on the website, so why is the price so low?

The listing, posted by Auction House North East, read: “This three bedroom end-terraced property offers it all with a great location and accommodation comprising in brief, entrance hall, lounge, dining room, kitchen, rear lobby and bathroom to the ground floor.

“The first floor hosts landing and three bedrooms.”

There is “gas central heating and Upvc double glazing throughout with external enclosed rear yard and on street parking to the front.”

The listing also boasts: “Located ideally for local amenities and schools and the Town Centre is only a short walk away.

“We anticipate a high volume of interest in this property so recommend calling us today for more information.”

So why is the property so cheap? The ad reveals the £22,000 is just a guide price for the property, as it is going to auction on 11 June.

According to Zoopla market stats the average estimated value for a house in the area is £62,178.

How does a guide price work? The listing reads: “Guides are provided as an indication of each seller’s minimum expectation.

“They are not necessarily figures which a property will sell for and may change at any time prior to the auction.

“Each property will be offered subject to a Reserve (a figure below which the Auctioneer cannot sell the property during the auction) which we expect will be set within the Guide Range or no more than 10 per cent above a single figure Guide.”

The advert also reveals there are so additional costs those purchasing the home at auction will incur.

These are the buyers premium, which is £1140 including VAT payable on exchange of contracts.

Also, there is the the administration charge, which is £900 inc VAT payable on exchange of contracts.

Another property for sale was recently listed on Zoopla for just £37,500. 

Being sold by Ashtons Estate Agency, why is the home so cheap?

A close look at the listing reveals why this home is on the market for so little.