Melbourne auctions: Developer pays $200,000 over reserve for beloved family home
Developers braved the uncertain coronavirus-impacted property market to pay well above reserve for an ageing family home on a large block.
Auctioneer Paul Harrison said about six bidders were interested in buying the 1363-square-metre Pascoe Vale property, but just two took part.
It was one of 100 auctions scheduled in Melbourne this weekend.
By evening, Domain Group had recorded a preliminary clearance rate of 70.1 per cent from 72 reported results.
Bidding between the pair, set at opposite sides of 8 Devon Road’s backyard, quickly sent the price past the reserve of $1.35 million.
Increments never went below $25,000 as the two developers brought the price to $1.55 million, where it sold $200,000 more than reserve.
There were 10 attendees, the maximum currently allowed, while a few others stood in the driveway.
Nelson Alexander agent David Vaughan said it was a good price, despite the weak market. He said the buyer would land bank the property for some time before making a final decision on what to build.
“Stock has been tightly held in this area and being the block size it was, it was in high demand,” he said. “You can put four or six units on the block subject to council approval.”
The vendors, Jim and Lily Spurway had lived at the property since they built it and had raised their two children there.
“We’ve lived here 62 years, and we built the house in 1958,” Mr Spurway said.
The couple were downsizing, as the big yard was becoming too challenging for the 89-year-olds to maintain.
“There used to be an orchard down the back, but there’s just one pear tree left,” Mrs Spurway said. “I used to love [growing] silverbeet and cabbage too.”
The couple have bought a smaller, single-level home a couple of suburbs over.
“Oh, a lot of memories, yeah, we’ve enjoyed ourselves here,” Mr Spurway said. “Very happy, [the price was] more than I expected so that’s good.”
Another family home in Mentone sold too, in post-auction negotiations after passing in.
The home at 109 Patty Street had belonged to one family since 1946, and its new owner was planning to restore the home as faithfully as possible.
“She comes from Parkdale, and wants to restore it to its original condition,” auctioneer and listing agent Kevin Chokshi of Ray White Cheltenham said. “She loves the location, loves the character of the home.”
The home passed in at $1.045 million after some short and sharp bidding, $50,000 below the bottom of the quoted price range.
The buyer beat three other bidders to clinch the home for $1.055 million.
Mr Chokshi said the sale stalled because the home was in need of a fair bit of renovation, which made buyers nervous.
“Buyers are looking for social proof at the moment,” he said. “It’s very old, been in the family since 1946, and it had never been touched.
“It was a bit of an unknown when you’re taking on a property like that.”
Earlier in Brunswick West, another older-style family home sold well, beating its reserve by $135,000.
The three-bedroom house at 274A Union Street, which Jellis Craig agent Aaron Leask said had been in one family for nearly 90 years, attracted four bidders.
“It was built in 1926 or so,” he said. “So a bit of history went on sale today.”
Bidding lasted for just 10 minutes, while the rain held off.
Mr Leask said the bidders passed the reserve of $1.04 million quickly, and later sold for $1,175,000.
“I sold it to an older gentleman, who may renovate it or rebuild for his kids,” he said. “Hopefully they hold it for another 90 years themselves.”
Later in Elwood, a two-bedroom unit sold to an online bidder, also substantially beating its reserve.
The apartment at 1/4 Dickens Street sold for $112,000 more than the seller’s minimum price of $710,000.
Bidding started at $700,000 and was past the reserve within three bids. It sold for $812,000, with five bidders taking part.
“The buyer is a home buyer, a younger home buyer,” auctioneer and listing agent David Wood said. “That seemed to be the majority of the registered bidders.”
Mr Wood said some investors were registered, but didn’t see as much value in the unit as the home buyers.
“It overlooks a communal garden, and it’s just a great apartment,” he said. “It’s got more accommodation than the average single fronted home.”
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