A wooden chalet near Penzance in Cornwall, is in a terrible state. The single-storey one-bedroom timber shack has deteriorated horribly, and the overgrown hillside is threatening to reclaim it.
The state of the chalet means it was no surprise that it went up for auction with a guide price of just £25,000. However, the final sum it fetched came as something of a shock.
The chalet was built in the 1940s and now no longer boasts mains services. But although the building itself may not be a great deal to write home about, it sits on the hillside overlooking the coast onto Mounts Bay, and has a stunning panoramic view of the headland.
Bidders saw the enormous potential for development, and flocked to the sale yesterday. The result was a bidding war, which sold the chalet for an astonishing £235,000. Andrew Jarrold, associate director and auctioneer at Countrywide, told the Daily Mail: "There was euphoria in the sale room, everyone was clapping." He told The Cornishman: "That is the power of an auction - it lets the market decided the value."
It's not the first time a run down property has shocked by selling for many multiples of the asking price.
But doubling the guide price is small potatoes. In 2012 we saw a run-down house in Tonypandy quadruple it. It went up for auction with a guide price of £4,000. In the end it sold for £16,500 - in just 45 seconds.
Perhaps the most impressive uplift at auction was a three-bedroom house in Stockton-on-Tees near Middlesborough. It was expected to become the cheapest in the country after being listed at auction for £750. In the end it sold for £14,000. The auctioneers pointed out that once renovated it would be worth as much as £35,000 - which means that it would still pay for the right property investor.