Auction Tales 170525
May Auction Tales, the stories of Melbourne real estate auctions, or those I see.
Auctions are fun if you are not the one bidding for your next home. Nerve wracking, frustrating and confusing if you don’t know what you are doing.
Each week I view at least one auction. Often they are different real estate brands and different auctioneers. They all have their own style.
TALES FROM A MAY AUCTION
Another Ray White auction last weekend. This home was in the right area however I felt that it would go beyond my clients price range. I like to look when I can even if not completely suitable as it gives me insight into the market.
I loved the name of this street (Laha). It was a nice street with autumn colour, quiet yet close to Northland Shopping Centre, Preston North East Primary, Albert Rd and Wood St.
A front townhouse, 1 of 3 on the block. Three bedrooms, two bathrooms, a single living area, one car garage and small courtyard on 204m2. Priced at $650,000 to $690,000.
How comparable were the Comparables used in the Agents Price Guide?
- 1 8B Crevelli St Reservoir, Sold Price $685,000 21/1/25
- 2 7/100 Albert St Preston, Sold Price $695,000 30/12/24
- 3 3/10 Faye St Reservoir, Sold Price $645,000 14/12/2024
Comparable Property Sales
“These are the three properties sold within two kilometres of the property for sale in the last six months that the estate agent or agents representative considers to be most comparable to the property for sale”
‘Most comparable’ land size, land composition, house size, structure, degree of renovation, location, position, etc,within 6 months.
Were these homes the ‘most comparable’?
- 8B Crevelli, 3 bed, 2 bath, a double garage rather than a single, on 123m2
- 7/100 Albert St, very modern, 3 bed, 2 bath, single garage
- 3/10 Faye St, 3 bed, 1 bath, much older, single storey
These are things that I assess on behalf of my clients.
May Auction Day
A spectator only at this auction, there was a decent number of people in attendance. For the first time in a very long time, it was pouring rain and chilly, making it more convenient to hold the auction inside.
Spread evenly around the kitchen living area, one of the agents was in conversation with a potential bidder. Was he intending to bid? Yes. What was the highest price the bidder would go to?
Excuse me! What!! Maybe he was hoping to get the buyer on the hop but in a room full of people, standing quietly with murmured conversation only, the agent was asking the bidder to disclose his auction strategy with his competition, and I include the other bidders and the agent as this bidders competition.
Three bidders, our potential bidder watched and as the price went higher than the range, he became disinterested.
At the usual checking in with the seller at 706,000, the selling agent burst into song to keep us engaged. Another what?! This auction was bizarre.
24 bids (approximately), opening bid of $640,000 (vendor bid), on the market at $706,000 and sold for $714,000.
As always, I say it like I see it or hear it. It was bemusing.
Auctions and Making an offer prior
I am beginning to see this happening more regularly. Buyers are hoping to act before the competition gets organised.
You can make an offer prior, DEPENDING on the seller (or the Selling Agent).
If you do want to do this, then your offer will need to be strong as you are asking the seller to take the home off the market mid campaign.
Do your research. Know your price. Know your walkaway. Do your inspections.
It’s worth a shot depending on the sellers motivation.
Don’t forget to add in Stamp Duty, do your own calculation at the government website www.sro.vic.gov.au
Do you think there has been illegal building work done or perhaps they have built over an easement? Consider Title Insurance. There are a few companies that can arrange this.
Need help buying or selling? Book a time to chat.
