FIRE destroyed a Cressy home yesterday morning as its owners made their way to a funeral on the mainland.
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The Tasmania Fire Service estimated the damage to be up to $500,000.
The circa 1850 house was for sale by offers over $349,000.
A Northern Midlands Council worker was the first to report the fire about 9.30am.
David Green was the first to respond to the scene with the Cressy Fire Brigade.
"When we arrived, we could see smoke coming out of every corner and gutter of the building. The actual fire started in the back. That's where the most intensity was, so that's where we attacked it from," Mr Green said. South-Esk fire brigade district officer Ian Bounds said crews were forced to control the flames from outside the building.
"It's an older-style house and they're usually quite hard to control," Mr Bounds said.
"The crews had to stay outside the structure because the beams were collapsing."
In total, four crews were on site to control the blaze.
Their focus was to protect other properties from the full extent of the flames.
"The occupants of neighbouring houses were evacuated as a safety precaution," Mr Bounds said.
The cause of the fire is under investigation.
The real estate agent of 42 Main Street, Cressy, described the home as a "complete, massive package".
The double-storey five- bedroom home was set on 2315 square metres of land.
The house had been recently renovated with fresh paint. A new hot water service, a new ensuite, a new kitchen and new windows were only some of the investments that the owners have lost in the blaze.
Another was a games room on the ground floor that measured 8.3 by 11.6 metres.