Own­ers get much more than they bar­gained for

The Sunday Telegraph (Sydney) - - HOT AUCTIONS -

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

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