Owners get much more than they bargained for
THE owners of a rundown home in Strathfield walked away with a price more than $450,000 above what they would have accepted at auction yesterday.
The four-bedroom house at 27 Swan St sold under the hammer at an early morning auction for $2.35 million after attracting an opening bid of $1.8 million.
And although the reserve price was undisclosed, selling agent Steven Devine reported the vendors would have been happy with $1.9 million considering the home was set on a smaller block for the area.
The interior was also dated and the 574 sqm property was in need of plenty of “tender loving care”, Mr Devine said.
The Devine Real Estate founder estimated a renovation job would have required an investment of more than $100,000. The vendors had used the house as an investment property for at least a decade, last renting it for $800 per week, CoreLogic records showed.
“It was a great result for the size,” Mr Devine said. “On a cost per square metre basis it was much higher than the average for the area.
“The price reflects future growth potential more than anything else. It’s a growth area and what today might seem like over-the-top will be good value down the line.”
Four buyers registered for the auction but only two took an active part — an investor and a couple hoping to occupy the property.
Auctioneer Michael Carolan said there was a “nervous” energy at the start of the sale but this quickly disappeared once the bidders had made a few offers. The bids went up in initial increments of $25,000 before slowing to $20,000 and $10,000 increases once bidding passed the $2 million mark.
The investor was the more aggressive of the bidders and ended up clinching the home with an offer $10,000 above the underbidder’s last bid.
The property was one of nearly 540 Sydney homes to go under the hammer yesterday in what was a more subdued day for sales compared to last weekend when there were more than 700 auctions.
In nearby suburb Lewisham, a five-bedroom Queen Anne-style Federation house on Gould Ave sold under the hammer for $2.731 million, $431,000 over reserve.
Agent Shad Hassen of The Agency-Inner West said the auction was competitive from the start.
The opening bid was $2.6 million, well above the $2.3 million price guide. Two more buyers put their hands up to bid, but the opening bidder emerged victorious.
Mr Hassen had earlier in the day sold a three-bedroom terrace in Petersham, dropping the hammer at $1.75 million, $200,000 over reserve.
Auctioneer Michael Carolan at the auction of the Swan St house (below left). A house in Lewisham (right) sold for $2.731m. Picture: Chris Pavlich