Sydney first homebuyer pays $1.2 million for derelict house: 'A mess'

A run-down home in Sydney's inner west sold for over $1.2 million when it went to auction over the weekend, with first homebuyers beating out builders ready to fix the place up.

Though the three-bedroom home on Sutherland Street in St Peters is extremely run down, or as some might say, completely derelict, it does have a lot of potential.

"What this three-bedroom terrace lacks in polish it makes up for in potential," the listing says.

"Set in a leafy, quiet part of the street with sought-after rear-lane access, the possibilities here are many. Located in a convenient spot with easy CBD access, its future is very bright."

Inside the home, the walls are tarnished and some have cracks running down them. The carpet is stained and grimy, and the kitchen appliances are rusty.

However, with high ceilings, a large main bedroom, an outdoor area and a car spot, it's easy to see how so many showed interest in the home and saw what it could be.

In the end, the home was sold for $1,205,000 at the auction on September 17.

First homebuyers beat out builders

Adrian Tsavalas was the agent selling the home and he told the Daily Telegraph there was plenty of interest from tradespeople and builders. However, it was a young couple looking to buy their first home who beat them all.

Before the auction, the home was littered with rubbish and Mr Tsavalas described the home as being a "mess". Once the rubbish and items in the home were removed it was clear there was extensive damage to the home.

He said the inside of the home was damp and part of the home would need to be knocked down as it was unstable.

• Thousands of Aussie holiday home owners asked to rent to homeless

• Aussie renters divided over 'ridiculous' new rule for tenants

• Young family forced to live in tent as Australia's rental crisis explodes

If the home is fixed up and restored, it could be worth upwards of $1.5 million, given the location.

It is not known what happened to the previous owner of the Sutherland Street home, though the Daily Telegraph reported it was understood they died a few years ago and the home has been unoccupied since.

Do you have a story tip? Email: newsroomau@yahoonews.com.

You can also follow us on Facebook, Instagram, TikTok and Twitter and download the Yahoo News app from the App Store or Google Play.