We speak to the team behind last week’s most intriguing property sale.
The property: A three-bedroom, one-bathroom terrace house at 6 Cook Street, Glebe, NSW. Sold at auction for $2,151,000.
Who was the agent/agency? Nick Playfair, Chris Nunn, BresicWhitney.
How long was this on the market? [Playfair] Four weeks.
Why did this one sell? The owners were upsizing. It’s in a cute row of about eight terraces, each with an individual name. A previous owner had renovated it and put a second level on. There was a big living space upstairs and it faced directly north.
Was it overpriced? No.
What did you think it would go for? $1.8 million to $1.85 million – at the top end, based on the market. We were guiding $1.7 million to $1.87 million as a 10 per cent range during the process. The owners had hopes. Could we get more than $1.87 million? But in the end, our advice was to put the reserve at a price we knew all the buyers would compete for.
What was surprising about it?
When you’re running an auction it is very much firming up later in the piece. Last year, you might from the first week know who your buyers are – they are making contract amendments, asking certain questions, which they do in a hot market – whereas now, they’re leaving their options open.
There’s less of an urgency to turn up at the first open home straight away.
We ran a four-week auction campaign. We had had good numbers through. We had some good active buyers coming through. They just weren’t latching on to it and sticking.
All our buyers saw it for the first time either eight or fewer days out from the auction. There was a mum with two kids. She came through on the Friday. The other two – a first home buyer in his early 30s and a couple that have just moved back from London – came on the Saturday.
The mum was talking about working towards an offer prior, which she didn’t [make].
Was that an attractive option for the vendor?
It very much depends on how the campaign’s doing. If they are the only buyer, it might be attractive. It was very much a day-by-day thing in the last week.
Once we had the first of those three through and the other two the next day, it started to feel like running the auction was more of a likelihood and potentially our best chance. Whether one bids, or the other two do also and we have two or three, it was the best opportunity for us.
What was interesting was how fiercely it was competed for. All three parties bid. One dropped out at $1.8 million and the other two took it the rest of the way up to $2.151 million. It had last sold for $1.37 million in 2019. That’s about 57 per cent growth. The first home buyer bought it.
Do vendors require more hand-holding in this market?
A lot of owners don’t want to run an auction if they feel like it’s going to pass in. They feel it’s embarrassing. They had some thoughts about: “Why would we run an auction if there’s no one or only one person there?”
Someone might offer only $1.5 million when the guide is $1.7 million, but if they turn up and want to buy it, you can have a sensible conversation. They can buy it that day. It becomes more like a negotiation on the auction floor.
But with all certainty, when you withdraw an auction you have zero per cent chance of selling at auction unconditionally, which is very clean. It sends a really negative sense to the market that we had nothing.
Do you reckon we’ll see another result like this: a) next week b) next year c) next cycle d) never?
a) I’ve got one running tomorrow that I think’s going to be competitive in Lilyfield.
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