Maidstone home passes in at auction, sells later for $1.276 million as nervous buyers hold back
A three-bedroom home in Maidstone passed in at auction on a single vendor bid of $1.22 million, then sold in a fast post-auction negotiation for $1,276,000.
The neat-as-a-pin home at 8 Gibb Street, in the “Paris end” of the suburb, drew a crowd of interested buyers, but none would raise their hand to make an offer.
It’s become a growing trend, agents say, with several auctions passing in on Saturday, then selling directly afterwards. Nervous buyers are holding back and do not wish to overpay for property in a weakening market that’s likely to be hit with more interest rate rises.
Bidders kept their hands in their pockets, or on their umbrellas, after Village Real Estate managing director and auctioneer Huss Saad asked on a stormy Saturday morning for an opening bid for the home with its own cubby house.
They also kept quiet after he made a vendor’s bid, asking for a follow-up $20,000 offer from the crowd.
The house didn’t receive a single bid from the buyers, but after it passed in, a family who had recently migrated from Vietnam negotiated its purchase.
The sale price was in the middle of the $1.22 million to $1.32 million asking price range.
Saad said bidders were becoming fewer and farther between at auctions, even if they were ready to make an offer.
“Buyers are really waiting to see who else might be out there and what they’re willing to bid,” Saad said. “They think that holding off may give them a bit more power in the negotiation after.”
The home in Melbourne’s inner west was one of 630 scheduled auctions across the city on Saturday. By evening, Domain Group recorded a preliminary clearance rate of 55.0 per cent from 451 reported results, while 68 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
The Maidstone home was not the only one that passed in and sold later at the weekend. A three-bedroom terrace at 108 Roseberry Street, Ascot Vale passed in, then sold on the reserve of $1.2 million after the auction.
Nelson Alexander Ascot Vale selling agent Josh Kalender said two bidders competed and one made strong bids while the other attempted to slow proceedings by making $1000 offers.
The property passed in on a $1.18 million bid, before a quick negotiation. It sold to an upsizer from the local area.
“It’s really about the market sentiment at the moment,” Kalender said. “I tell vendors that if you’re not willing to offer good value, there’s always someone else that will, and that means they’ll miss out.”
A four-bedroom house at 11 Hamilton Street, Brunswick West had a similar result, with two bidders also making offers during the auction.
The property opened with a vendor bid of $1.46 million, before passing in on a $1.5 million offer. It sold after a short negotiation for $1.56 million – above the $1.5 million to $1.55 million price guide.
Jellis Craig Brunswick partner and auctioneer Dylan Francis said the buyers were a young, local couple looking to upsize their home and had been keen from the start of the auction to buy. Even so, they and other bidders were holding back from making huge offers.
“Buyers are just sitting on their hands … because a) they want to see it declared on the market before bidding, and b) they don’t want to overpay,” Francis said.
He said some buyers were struggling to get their finance approved in time to make any bids.
The Saturday market wasn’t all pass-ins. A two-bedroom single-fronted Victorian terrace at 15 Queen Street, Fitzroy North sold under the hammer for $925,000 after three bidders competed.
It sold in the middle of the $870,000 to $940,000 price guide.
“Properties like this have a different buyer pool when you’re talking investors, owner-occupiers and downsizers, and anything under $1 million in an A-grade area like Fitzroy North is always going to get a lot of interest and a good crowd,” Francis said.
In Northcote, a three-bedroom modern home at 3A Bent Street sold under the hammer for $1.49 million to a professional woman looking to move to the sought-after suburb.
Nelson Alexander Northcote selling agent Denise Kriaris said four bidders competed, with an opening bid of $1.25 million setting the scene.
A final bid of $4000 sealed the deal for the buyer, one of many interested in the property for its two car parks.
“That’s really rare for Northcote,” Kriaris said. “It’s been a really odd time, and we definitely don’t have as many buyers as we did at the start of the year. But people are still out and looking, and they’re buying.”
In Endeavour Hills, a four-bedroom home at 8 Orbison Court had seven active bidders compete for the keys.
The home had an opening bid of $800,000, with $50,000 offers taking the price to $1.2 million. It sold under the hammer for $1,226,000, well above price expectations, to siblings who said their mother would possibly be moving into the home.
Ray White Ferntree Gully partner Jack Rickard said the right properties were still attracting good competition from buyers.
“I think it’s a very price-sensitive market at the moment – if people see value they’ll bid, and if they don’t, obviously they won’t,” he said.
States
Capital Cities
Capital Cities - Rentals
Popular Areas
Allhomes
More
