Hay has a median house price of $115,000, based on recent sales on realestate.com.au, but a three-bedroom home on Murray Street listed at $7000 is considered by market analysts to have the nation's lowest selling price.

The Daily Advertiser understands that the property is under offer but has not been formally sold.

The real estate agent that listed the house, Landmark Harcourts Hay, declined to comment.

Advertising for the sale stated the home, which included a bathroom and car parking space, was "to be sold as is".

"This cladded home on a 506 square metre block of land is an ideal renovators delight," the advertisement stated.

"Please be aware, due to the nature of the sale, this property is unable to be accessed for inspections."

The property at 426 Murray Street was previously sold for $48,000 in 2004 and and $30,000 in 2012.

Hay private agent Ian Macleod was not involved in the Murray Street house's listing but has spent about 40 years working in the town's real estate market.

"Years ago it was the residence of the pub keeper for the old Terminus Hotel, which is now derelict," he said.

"It's a house in the terminology of what it looks like but its a knock-down and cart-away job."

"If you were going to buy it you certainly wouldn't buy it to renovate it; you're buying the block and you would demolish the lot."

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Mr Macleod said he had not seen a house go for such a comparatively cheap price during his time at Hay.

Mr McLeod said he would be surprised if it did sell as the additional demolition cost would about the same as an average empty housing lot in Hay.

A nearby house on Murray Street was sold in March for $315,000, which was much closer to Wagga's median house price of $360,000 on domain.com.au.

If Hay's $7000 house is sold or taken off the market, there was another contender for Australia's cheapest listing less than 1.5 kilometres away, with a two-bedroom home on offer for $39,000.