The disclaimer probably didn't help.

At the auction for three Western Rd properties at the heart of a sinking homes saga, Harcourts Rotorua owner and auctioneer Glenn Austin told the 15 potential bidders in the room that "purchasers acknowledge they are aware of geotechnical investigations".

"It is anticipated further ground subsidence may occur," he said.

BENN BATHGATE/STUFF Number 80 attracted seven bids, the highest reaching $160,000.

The homes were built as part of the Oakland Estate development and subsidence problems first came to light in 2008. In 2012 the Department of Building and Housing reversed the consents for the three properties, prompting a legal tussle between developers, the engineers, the council and the property owners ahead of an out-of-court settlement with seven property owners.

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The three homes then became the property of Rotorua Lakes Council.

BENN BATHGATE/STUFF The highest bid was $235,000 for number 76 Western Rd.

Austin said the reserve prices for the three houses, numbers 66, 76 and 80, would not be revealed and invited the bidders to kick off proceedings with bids for number 76.

"You won't offend me with an opening bid," he said.

The first bid came in at $50,000, "well below," according to Austin.

BENN BATHGATE/STUFF Harcourts Rotorua owner and auctioneer Glenn Austin.

Bids then escalated from $100,000 to the final bid of $235,000, a sum Austin said would not be adequate to purchase the property.

Next on the block was number 66.

Bids again started at $50,000 before peaking at $150,000.

"These prices are from 20 years ago," Austin said.

A final bid of $150,000 was rejected before bidding started on number 80, again at $50,000.

"Who's going to help me sell a property," Austin said.

The bidding went from $50,000 to a high point of $160,000.

"We're not going to be selling at this level," he said.

The auction took seven minutes in total.

Rotorua Lakes Council chief financial officer Thomas Colle said the purpose of the auction was to recover public money.

"The properties did not meet the market appraisals we had done and we will now consider our next steps," he said.

At the time of the settlement, councillor Merepeka Raukawa-Tait said council could have done more.

"There's nothing wrong in the council showing a little compassion from time to time and I thought that was what we lacked. We just lacked compassion."