Melbourne auctions: House flippers ink paper gain of nearly $500,000 on Seddon home
Two house flippers have inked a paper gain of nearly $500,000 on their latest project, a stylish three-bedroom house in Seddon.
David and Ann Sherman have been renovating and selling houses in Victoria and Queensland for four years and have done seven projects since starting.
It was one of 394 auctions scheduled in Melbourne on Saturday.
By evening, Domain Group recorded a preliminary clearance rate of 57.0 per cent from 272 reported results.
Coronavirus hit during the renovation of 50 Austin Street, but the two decided they would take it to auction anyway.
“We just decided to soldier on and we’re happy with the result at the end of the day,” Mr Sherman said.
“We’d been working solidly for about eight months to get it up to scratch,” Ms Sherman added.
After a brief auction, the home sold for $1.27 million, towards the top of its quoted price range, to a young family from the area.
The couple bought the home for $778,500 in late 2014, public records show, a 63 per cent rise in five years.
While some of the $491,500 difference will go to taxes, the two are happy with the sale.
“It’s a tight environment to be doing this thing because we’re talking big dollars,” Mr Sherman said. “But at the end of the day we’re very happy with the result.”
They have made flipping houses their full-time job.
“We were both in senior management, and we were sick of stressful meetings and getting phone calls in the middle of the night,” Ms Sherman said. “It’s messy, dirty work but we love it.”
Immediately following the auction, Jas Stephens listing agent Marina Condic said it was good to see her listing get across the line on one of the busiest weekends since the COVID-19 crisis began.
“It went really well and we’re really happy it sold under the hammer,” she said. “We should have a reasonable weekend through Victoria.
“Stock levels have been low across the board so a good property in a good location should still sell relatively well.”
Earlier in Kensington, a large two-bedroom unit attracted a crowd and seven bidders.
Competition for 8/465 Macaulay Road was fierce, with auctioneer and listing agent Ryan Currie taking bids as fast as he could speak.
“A lot of bids, fast and furious bids,” he said. “It was a great result.”
After more than 40 quick bids, the house sold to a first-time bidder and buyer for $741,000, $41,000 more than the reserve and the top of the quoted price range.
Mr Currie said he hoped there would be more good results like his through Melbourne on Saturday.
“This will be a good barometer of what the market is doing,” he said. “Since COVID kicked in the rug was pulled out from us.
“Now the buyers and sellers are more comfortable and we’re back in business.”
In Elsternwick, a three-bedroom home sold to a family for $1.95 million in a hot auction.
Kay and Burton agent Grant Samuel said half of the bidders for 24 Seymour Road were priced out quickly.
“We had 10 registered bidders which is a huge turnout,” he said. “We opened at $1.7 million and about five of those 10 put their hands up.”
The quoted price range was $1.7 million to $1.87 million.
Mr Samuel said there had been 128 parties through the property during the lead up to the auction.
“In a market where everyone’s wondering what’s happening, to have such demand around that price point it’s good to see,” he said.
Mr Samuel said buyers were keen to see the property because of its location and finish.
“Knowing the park was next door was like a garden that you’re not buying,” he said. “It’s in the heart of Elsternwick and possibly the best street.”
In Clifton Hill, another two-bedroom unit passed in but sold in post-auction negotiations for $705,000.
Nelson Alexander agent Charlie Barham said the unit at 104/27 Groom Street was the first to resell since the block was built.
It had been an interesting campaign, with the eventual buyer not even attending the auction, he said.
“It passed in at $680,000 [on a vendor bid] and it sold to someone who didn’t come to the auction, interestingly,” he said. “They’re from country Victoria and they decided not to come down.”
He said it was pure luck the buyers got a chance to nab the like-new, modern apartment.
“I think in any market, if you’ve got an interest it stands to reason you should always attend the auction and don’t assume it’ll be too competitive,” he said. “Sometimes you can be in the right place at the right time.”
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