Underbidders beware
The new year is expected to bring sellers good cheer, writes Nathan Mawby
AWEST Footscray home that surged to almost $1m has prompted a warning hopeful homebuyers might need to revise their expectations next year. Two househunters who had both been searching for their next home for more than 18 months clashed at 5 Fontein Street, driving the auction $100,000 past expectations to a $990,000 sale.
The deal was one of the hundreds done under the hammer last week as the city recorded an 84 per cent clearance rate from 1165 scheduled auctions, according to realestate.com.au.
Property Home Base director Julie DeBondtBarker made the $880,000 opening bid, at the top of the pre-auction price guide, and the home was instantly on the market. “I was thinking I’d smash it,” Ms DeBondt-Barker said.
But two other parties jumped in, including the eventual buyer who had been looking for a year and a half.
This left her clients to continue their own lengthy search, which had stretched across the same time frame.
“The buyer had clearly just decided they were buying it no matter what,” she said. “That’s a ridiculous result, but it’s a sign of the times.
“Anyone who misses out this weekend will be licking their wounds, but should then reassess and recalibrate. You will probably at some point have to decide what’s more important, the home or the location.”
Barry Plant’s Jason Allen said almost 20 groups had been interested in the updated threebedroom weatherboard, but the opening offer had stopped most from bidding.
Meanwhile, 13 parties registered to bid for a 318 Nepean Highway, Frankston, house with Kananook Creek on its back doorstep.
Seven put their hands up to push the property $201,000 past reserve to a $951,000 sale.
Hocking Stuart’s Adam Miller said the investors who won the keys weren’t sure what they would do with the property, despite having paid a benchmark $1883 per sqm.
“Watch this space, this area is going to see a lot more investment from people who might have shied away in the past,” Mr Miller said.
Realestate.com.au expects 1204 homes to go under the hammer this week — the secondhighest offering this year.
This will be our last edition for 2020 and we will return on January 16. In the meantime, we wish all our readers a safe and happy festive season.