‘Realistic’ sellers cut reserve for Marrickville house by $95,000 at auction
A couple in their late thirties upgraded to a Marrickville house for $1,655,000 at auction on Saturday, but only after the sellers cut their reserve to meet the market.
Four buyers – half first-home buyers and the other half upgraders – registered to bid on the two-bedroom property at 115 Warren Road.
It was one of 537 homes scheduled to go to auction in Sydney on Saturday. By evening, Domain Group recorded a preliminary clearance rate of 61.1 per cent from 365 reported results, while 96 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
This is the first time Sydney’s preliminary auction clearance rate has been above 60 per cent this winter. A 60 per cent clearance rate is considered a balanced market, and the last time Sydney exceeded this threshold was on May 28 at 62.8 per cent.
AuctionWorks director and chief auctioneer Jesse Davidson was met with two long minutes of silence before an opening bid of $1.4 million was placed, below the guide, to which Davidson replied: “I’m not even going to argue with you”.
The home, initially guided at $1.45 million then revised upwards to $1.5 million after buyer feedback, was contested by three active buyers in the end as each took turns in raising the price in mainly $10,000 increments.
The final $5000 bid took the sale price to $1,655,000, some $95,000 short of reserve, which after a few moments of deliberation with the vendors was enough for the hammer to fall.
Successful buyers Charmaine and Xavier, professionals in their late thirties who declined to give their last names, were overwhelmed by emotion and had been looking since Easter for a place to upgrade to from their Dulwich Hill unit.
The pair said they were looking for the right place rather than timing the market.
“We were really just waiting for the right place to come along… [interest rates] obviously plays into it. That’s a factor for everyone right now. We definitely have that in mind, but we’re pretty happy,” Charmaine said.
Raine&Horne Marrickville’s Filippo D’Arrigo said the auction went to plan with four expected registered bidders on the day and reasonable vendors, who were also upgrading.
“The vendors were realistic. There were no doubts when we asked the question [of reducing the reserve],” D’Arrigo said. “They were listening to the market and happy to go through the process.
“Today was a true representation of a good quality home. It was a real family home and there were people who wanted to buy it.”
The home last traded for $1.48 million in 2017, records show.
Marrickville’s median house price grew 24.4 per cent to $1.97 million in the year to June on Domain data.
In Double Bay, a cashed-up local downsizer picked up a one-bedroom unit for $2,005,000.
Six of the eight registered buyers placed a bid on G01/8 Patterson Street, which opened at $1.52 million.
Despite falling short of the $1.6 million guide, McGrath Paddington’s Georgia Cleary said the property was on the market within three bids, surpassing the $1.58 million reserve.
Cleary said the standout result was ultimately down to the property’s quality.
“If there is a point of difference then that is reflected in the price … in a normal market you see the better properties getting better prices, which should be the way,” she said, adding that the boom six months ago was “artificial” and could never last.
“This is a more sustainable market, and it’s better for buyers and sellers. There is a lot of local money and local interest to buy property.”
Double Bay’s median unit price grew 19.8 per cent to $2 million in the year to June.
In Concord, a young couple with triplets bought a 1950s art deco full brick house for just shy of $4 million with plans to build their dream home.
Four out of the seven registered buyers placed bids on 4 Sanders Parade, which had no price guide.
The auction was quick to start at $3 million and the handbrakes went up at $3.9 million, where the agents and Cooley’s auctioneer Michael Garofolo said they had to “really earn our keep”.
The vendors eventually reduced their $4 million reserve and the highest bidders and sellers met at the final price of $3.94 million.
“The market is still there, buyers are still there; as long as you’re realistic, you’re selling,” Garofolo said.
“That’s still a premium price, we have to get our heads out of the clouds from six months ago. Yes, the market has come back, but it hasn’t fallen off a cliff.”
In Lane Cove West, a local family purchased a three-bedroom property that hit the market for the first time in over seven decades for $2.45 million as an investment.
The successful buyers outbid six other registered parties, including two online bidders who kicked off the auction for 34 Wood Street at $2 million.
The Agency North’s Shane Slater said the buyers were planning to do a minor renovation to rent it out before moving in after a few years.
“They’re going to do paint and carpets, a bit of a tidy up then rent it out for the next three to five years,” Slater said.
“It’s really sought after. Six months ago, it probably would have gone for $2.6 million. These people are pretty astute buyers now, jumping in now to get it at that price.”
The reserve was $2.2 million.
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