'We can't be too greedy': Amaroo home sells for $760,000 prior to auction

With fewer homes selling at auction as the number of buyers declines due to financial issues, more consideration is being given to selling homes when pre-auction offers present themselves. 

The three-bedroom home at 8 Naas Close, Amaroo, which was originally scheduled to go to auction on Saturday, sold the day before when the only interested party in a position to buy placed an offer of $760,000, said co-selling agent Chris Frederick of Luton Properties Gungahlin. 

The home attracted 30 groups during the campaign, and there was “plenty of genuine interest” from a number of the viewers, he said. 

However, many of the prospective buyers were unable to organise finance by the time the auction date approached.

“We had a couple of parties interested in the property, but just the one was able to make it to the level we were after, and no one could do anything higher than that,” Frederick said. 

“The end result of $760,000 is still where we were expecting the home to sell for, so despite not selling within the auction, it’s still a great result.”

He added that, while auctions were good for generating competition and active bidding, there were benefits to selling when appropriate pre-auction offers were made.

“When there are pre-auction offers, you’ve got buyers that want to get the property straight away and just lock it in,” Frederick said.

“Auctions also bring a lot of uncertainty – buyers can be a bit flaky in a sense and pull the pin at the last minute – so pre-auction offers guarantee a sale for the owner, which is really important at the moment.

“Essentially, once a pre-auction offer exists, it’s a bit more security for the owners, which is ideal with the unpredictability of the current market and buyers’ financial abilities.”

Last weekend, a Chapman home was passed in at auction after a number of bidders pulled out at the last minute, but a deal was made in the hours following due to a determination to get the home sold.

Frederick said the many factors making auctions more difficult for buyers meant that agents and sellers were more open to accepting any offers when they received them.

“If someone comes in and they’re really keen, they’re motivated, and their offer is at a level where the owners are happy … we are in one of those markets where we can’t be too greedy, because that is when it comes back to bite you a little bit,” he said. 

“And, if you’re happy with the pre-auction offer and other parties do decide to come in and place other offers, it really just turns into an auction over the phone.

“You can still get more than the initial offer you are given, but in saying that, the worst-case scenario is only that you have an offer that you are happy with, and it is all locked in.”

Both parties were extremely happy with the result, Frederick added. 

“The buyer is moving in from the south side, they are by themselves and with a dog, and wanted enough space for their dog to run around in the backyard,” he said.

“The sellers are upsizing. They are a family with two young kids, and the home is becoming too small for them.”