A well-presented Richmond investment property sold at a loss in post-auction negotiations on Saturday, and traded below its published reserve price.
asserted
property → present → price
A first home buying couple paid $1.22 million for the bright, freestanding three-bedroom house at 71 Cutter Street, which has timber floors, an outdoor dining area and off-street parking.
asserted
which → buy → street
The Richmond home last sold in 2020 for $1.44 million, records show, and has since been advertised for rent.
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records → sell → rent
The property was one of 714 scheduled to go to auction in Melbourne last week.
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property → schedule → Melbourne
By Saturday evening, Domain recorded a preliminary auction clearance rate of 56 per cent from 506 reported results throughout the week, while 79 auctions were withdrawn.
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auctions → record → week
Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
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auctions → withdraw → rate
The weekend was the first since the September interest rate rise, and since new laws were introduced around the disclosure of sale prices, comparable sales and reserve prices.
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laws → introduce → prices
A two-week grace period means only some reserves were disclosed this weekend, but all auctions from October 16 must have their reserves published a week prior.
asserted
reserves → mean → October
The Richmond property was listed for sale with a price guide of $1.2 million to $1.3 million, which was updated to a published reserve of $1.3 million, then a published reserve of $1.25 million.
asserted
which → list → million
Proceedings began with a vendor bid of $1.2 million.
asserted
Proceedings → begin → million
BigginScott Richmond selling agent Edward Hobbs had expected two bidders, but one did not bid.
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one → sell → bidders
A young couple placed a bid of $1.21 million, but with no further offers, the home passed in.
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home → place → offers
It sold in negotiations for $1.22 million.
asserted
It → sell → million
“An extra $10,000, short settlement, and the owners were happy to wrap it up,” Hobbs said.
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Hobbs → wrap → it
He said the buyers had been looking since January.
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buyers → say → January
“They bought it pretty well.
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They → buy → it
I thought it might at least get the reserve.
uncertain
it → think → reserve
They understand there is some affordability out there,” he said.
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he → understand → ?
Hobbs said he had fielded strong attendance at open homes, and that buyers didn’t bring up interest rates with him this weekend.
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buyers → say → him
He backed the new rules around reserve price disclosure.
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He → back → disclosure
“I like the transparency.
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I → like → transparency
I may have had one in 100 [auctions] where the owners have given us a reserve that is not what we were thinking and it has shocked us,” Hobbs said.
uncertain
Hobbs → have → us
The three-bedroom house on a 440-square-metre block at 2 Temple Street was listed with a price guide of $1 million to $1.1 million.
asserted
house → list → million
A vendor bid of $1 million was placed, but with no more offers, the home passed in.
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home → place → offers
The reserve price was $1.05 million and the property is now listed for sale at that price.
asserted
property → list → price
Three parties showed interest post-auction, Ray White Brunswick selling agent Matthew Schroeder said.
“We have got a few people that are interested, there is just a bit of trepidation from buyers at the moment, especially with properties that need a lot of work,” he said.
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he → show → work
Schroeder said the heritage facade made the home unsuitable for developers, and it couldn’t be rented.
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it → say → developers
The home had been in one family for six decades and the vendor moved out some years ago.
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vendor → move → decades
Potential buyers have included parents and adult children.
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buyers → include → parents
“It looks like they are using a bit of funding from the bank of mum and dad to buy something of that land size and do the work themselves,” he said.
asserted
he → look → work
Schroeder said interest rates were being discussed by both buyers and sellers as the buyers’ borrowing power diminished.
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power → say → buyers
“Yes, the rates are higher but it is probably the most competitive market for buyers we have seen in over a decade,” he said.
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he → see → decade
In Mickleham, in Melbourne’s outer northern suburbs, a stylish new build is still available after passing in on a bid of $543,000.
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build → pass → 543,000
The three-bedroom house at 45 Cassia Way features a Mediterranean-inspired curved facade of pale bricks and arched windows.
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house → feature → bricks
It was listed with price hopes of $500,000 to $550,000.
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It → list → 550,000
Two first home buyers competed: a solo buyer and a young couple.
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buyers → compete → ?
Bidding began at $530,000 and rose in mostly $2500 increments to $542,500.
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Bidding → begin → 542,500
After one more $500 bid, the property passed in.
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property → pass → bid
“Traditionally, the first home buyer market never missed a beat in all sorts of cycles we have been through,” AMS Real Estate selling agent Omar Morsi said.
asserted
Morsi → miss → cycles
“This is the first time we have experienced that first home buyers are becoming bothered by the current state of the market.
asserted
buyers → experience → market
…and 4 more, not listed.
The Aporia
