Crumbling cottage sold for $5000 hits the market ... what will it fetch?

The home at 4616 Mitchell Highway is listed for sale at $299,000.

Also known as Barkers Cottage, the historic building is severely decayed.

It has two bedrooms, one bathroom and sits on a 835 square metre block.

"Situated in the heart of the village, this iconic piece of history offers a rare opportunity," the listing says.

"Steeped in character and charm ... the possibilities are endless. It presents the perfect canvas for restoration enthusiasts."

The Central Western Daily understands an offer has been made to buy the house.

In a closed meeting on Tuesday night, Orange City Councillors voted to defer sale until a further date.

A council representative declined to comment when approached for information.

The CWD understands approval has been delayed to verify if the home comes under the council housing strategy.

According to online records, Orange City Council bought the house in 2001 for $5000.