- Ray White agent Sahil Mehta has a week to sell a Henderson house before a bank mortgagee sale.
- Mehta aims to help the family avoid financial damage by setting an auction reserve price.
- The property, valued at $1.28m, attracted interest from flippers, with offers around $1.05m.
A West Auckland real estate agent has just over a week to sell his clients’ house before the bank steps in.
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Ray White agent Sahil Mehta told OneRoof that the owners of 276A Sturges Road, in Henderson, would likely make more money at their auction on March 9 than the bank would make at its mortgagee sale two days later.
He said he wanted the family to “exit their mortgage debt with dignity”.
“When a bank runs a mortgagee sale, its objective is simple: recover the outstanding loan. They do not set a reserve to protect the owners’ remaining equity. They do not provide vendor warranties. They are not focused on achieving a premium price beyond what is owed. Once the debt is cleared, their job is done. I believe there is a better way,” he told OneRoof.
Mehta said the family contacted him after their home was listed as a mortgagee sale with a different agency. “They were like, ‘OK, you have done sales nearby. Can you come and have a look at this? Can you save us from the bank mortgagee sale?’.”
Mehta moved fast and listed the property the next day. “BEAT THE BANK! Disregard previous price expectations - THIS MUST BE SOLD!” his listing on OneRoof said.
The vendors have been unable to meet their mortgage commitments, but hope that by selling with the agent, they will get a higher price. Photo / Supplied
Mehta said: “This auction is not just about a transaction. It is about giving a struggling family a genuine opportunity to walk away without lifelong financial damage.”
The property, which has an RV of $1.28m, was first listed in September last year with a search price of $1.2m, and went through several agents before being listed as a mortgagee sale on February 13.
Mehta said that the owners, a couple who bought the near-new house in 2018 for $1.19m, had since split up. The woman is still living in the house with her two daughters, but both partners were on a benefit and had not kept up with their mortgage payments since April last year. He said the debt was over $1m.
The agent’s listing had attracted a lot of interest, mostly flippers. “I can sell this property maybe today for $1.05m. I got an unconditional offer [after] I called a few flippers,” he said.
“Even in this tight market, I think the property is worth close to $1.2m.”
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Mehta said that the outlook was not good if the bank’s sale yielded a price that was less than what the couple owed, so he planned to set an auction reserve price to protect them.
The agent said he was explaining the owners’ situation in the hope that doing so would generate more offers. “If someone gives me an unconditional offer [that releases them from the mortgage], I will cancel the auction.”
Ray White agent Bob Lemalu is another agent with experience in such sales. He sold a South Auckland home in less than 24 hours at the end of 2024 after the bank threatened to take possession.
While the price was still well below the property’s $1.1m RV, it cleared the couple’s debts and gave them a bit extra in the back pocket, Lemalu told OneRoof at the time.
The agent expects the property to be picked up by a flipper, who will make some updates and hold on for a few months. Photo / Supplied
Since then, the agent has seen a lot more owners in distress, but has not had to do another “beat the bank” sale, he said.
Ray White owner Tom Rawson said he was seeing investors in his new Auckland city patch also moving before the bank clamped down. He said landlords who had lost tenants and were slipping behind on payments were moving quickly.
“People are making the call in a sideways market, a commercial decision just to exit,” he said, adding that while some were “pretty close” to having the bank move on them, he had not had to do a “beat the bank” sale yet.
But he was seeing more banks prepared to call a mortgagee sale now that others were doing so. “All of a sudden, it’s more risky for the banks, so they probably need to exit sooner, rather than later,” he told OneRoof.
“If [owners] were hoping that things were going to get much better and that was going to save you, hope is not a strategy that people are willing to work with.”
- 276A Sturges Road, Henderson, Auckland, goes to auction with Ray White on March 9
