Street Advocate Auction Review 10th October
Has The Property Market Gone Mad?
We went to four auctions over the weekend and took an offer for an off market property, so a big day for us!
The first property of the day was for my clients who had engaged me to bid on a couple of properties in the Coburg area. Working nearby, my clients were looking close to the inner city and found a property they liked at 106 Reynard St, Coburg, quite a busy thoroughfare.
Quoted at mid to high $700’s the buyers tried to secure the property earlier by making an offer of $840,000, which was rejected. Fair enough but when I was engaged, the agent continued to quote the property in the same range knowing they had received an offer well above that, interesting… Anyway the big interest on this property was due to its access to a park at the rear and a room built above the garage.
With more than five bidders interested in the property, an opening bid of $800,000 quickly kicked off proceedings. The bidding fiercely continued between ourselves and a number of other bidders until we reached a maximum, then two were finally left to fight it out. The final result, a whopping $1.185 million.
In my opinion this auction looked like a case of getting carried away in the moment which, if the current market was to tank, would see the new owners struggling to recover what they had spent. We stopped bidding at $906,000 so how two others saw value $300,000 above, and on a busy street, is beyond me. Another property in the same street sold last year for $780,000. Have prices gone up 50% in 12 months? I doubt it.
My second bidding effort was on another busy road at 141 O’hea Street Coburg. This property was well presented and had good street appeal. The crowd, like at the previous auction, consisted of first home buyers and young families looking to get into the market somehow.
Quoted at $690 – $750,000 a buyer opened the bidding at a very low level of $650,000, at which point we joined in with an $800,000 bid and put the property on the market immediately. Jumping in and out of bidding we fought with two other buyers, in the end losing at a price of $910,000, just shy of our buyer’s top price.
Image Source: newkeyrealestate.com.au 10 Henley Street, Pascoe Vale South
We were then off to 10 Henley St Pascoe Vale Sth where my buyers Cassie and Craig were hoping we could secure an unrenovated 3 bedroom weatherboard.
This auction started very differently and the bidding was much slower. Was that because of the area, the fact the property needed work or the bidders were less confident, who knows. What we did know is that we were in with a good chance.
Bidding was everywhere, we chopped and changed and mixed up the bids to keep our competitors on the back foot. Bidding from $700,000 we battled against a young female buyer on the phone who’d had enough at the $750,000 mark. It was then between another gentlemen who was looking to demolish and rebuild and myself.
We jostled in $5,000 increments then changed to $1,000 and even $500’s bids, confusing the auctioneer and many onlookers. In the end we managed to secure the home for a great price of $778,500 and the right settlement, our buyers were thrilled.
