Melbourne auctions: Bold bidder snags $938,000 Essendon North home with clever tactics
A bold bidder has used smart strategies to snag a three-bedroom house in Essendon North for just $2000 short of his maximum budget in a hard-fought auction.
Five parties battled it out for the keys to the side-by-side home at 10 Raleigh Grove, in a test of tactics that pushed the price to $938,000, some $58,000 above its reserve.
It was one of 174 auctions held in Melbourne on Saturday, a quiet auction weekend ahead of the Melbourne Cup public holiday.
By evening, Domain Group had recorded a 68.9 per cent clearance rate from 110 reported results.
The Victorian capital’s housing market has been picking up in recent months amid lower interest rates, but buyers at auction were still cautious to pay too much.
After a slow start, bidding for the well-presented home got underway at $750,000, below its quoted price guide of $800,000 to $850,000.
The price rose in increments of $10,000 and $5000 until the home reached its reserve of $880,000 and was declared on the market.
The ultimate winner gave the impression of deep pockets by making quick replies to his competitors after entering the fray at $885,000. Even after the increments dropped to $1000, he placed some larger offers of $2000.
The underbidders stretched themselves, with a woman placing a few last-ditch offers even as the man beside her repeatedly shook his head to indicate they were finished, to the mild amusement of the crowd of about 30.
The hammer eventually fell at $938,000.
Winning bidder Ross, who wished to be known only by his first name, gave no indication he was running close to the top of his budget.
“I tried to keep knocking them out, I knew they were probably at their limit,” he said afterwards.
“I had $2000 to go and that was it.”
Auctioneer Paul Filippone of Barry Plant had been training potential buyers on how to bid at auction.
“Ross took the advice to a T,” Mr Filippone said.
“He rebutted each and every time quickly. And if the increments were 1000 he was going up in two [thousand].”
Earlier, a two-bedroom townhouse nearby drew a crowd of about 20, with three parties placing bids.
The entry-level property at 1/5 Queen Street Essendon attracted an opening offer of $520,000 but auctioneer Christian Lonzi of Jellis Craig Essendon was then met with silence and placed a vendor bid of $530,000.
Cautious buyers eventually edged the price up to $566,000, when it sold to a first-home buyer whose father was bidding on her behalf. It had been listed with a price guide of $530,000 to $580,000.
As the auction was held in the garage to shelter from the rainy morning, Mr Lonzi suggested the confined space could be a little more intimidating for buyers than usual.
“I was pleased to get an opening bid,” he said.
“It was a bit more difficult than it would be in a more normal setting.”
Elsewhere, a two-bedroom Port Melbourne apartment passed in and sold afterwards, with three first-home buyers competing.
The art deco unit at 7/2 Seisman Place kicked off at $650,000, and quickly reached $675,000 where it passed in.
It sold in post-auction negotiations for $689,000.
“I think there [are] more first-home buyers entering the market,” Frank Gordon Estate Agents’ Stephen Yue said.
“They see it as a good time to buy while rates are low and they have the opportunity to buy before Christmas.”
At the other end of the market, a prestige Rob Mills-designed Toorak home passed in after one genuine bid of $3,950,000.
Its auction began with a vendor bid of $3.9 million and, despite two other parties showing interest, it had not sold at time of writing.
Abercromby’s Mark Williams expected the three-bedroom residence, featuring Miele appliances and a private courtyard with water feature, to sell within days.
“They are just being cautious like all good Toorak people at the moment,” he said.
“The market is improving but it is cautious.”
In Fitzroy, a top-floor two-bedroom apartment sold for $890,000 after interest from three bidders.
The contest for 503/160 Argyle Street began on a vendor’s bid of $775,000, with no-one keen to make the first move, Jellis Craig Fitzroy’s Lee Muddle said.
The winner had previously owned and was renting in the area, while the underbidder was a first-home buyer.
Bidding was “fairly confident”, he said. “It was raining, it was pretty miserable. People want to get on with their day.”
Held inside in front of an intimate crowd of about 20, the auction surpassed the reserve of $825,000, the top of the quoted price range.
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