Source : the age
A vendor accepted a bid of $4 million when her Balgowlah property passed in on Saturday, $20,000 less than she was offered by another party.
Two parties expressed interest in four-bedroom 28 New Street West earlier in the week, sales agent for Cunninghams Real Estate, Georgi Bate said. But one group, a family from interstate, advised her on Friday that while they would attend, they would not be registering.
The other party, a couple with adult children, were the sole registered bidders and said they would rather negotiate privately after the property passed in.
On that advice, auctioneer Emma Brown-Garrett passed it in without a bid and Bates asked everyone to leave. Negotiations then began, with the registered bidders increasing their pre-auction offer of $3.8 million to $4 million.
The vendors advised they were open to that offer.
However, the unregistered party, who was still present at the property, then made a counteroffer of $4,020,000. The vendor decided to take the original offer from the registered bidders.
The property had a guide of $3.8 million and a reserve of $4,050,000.
There is no legal requirement for a vendor’s reserve to be in line with their property’s price guide.
“The vendors were happy with their decision,” said Bates. “I said, ‘You could have gone with the higher offer.’
“[The vendor] said, ‘I could see they were ready and here to register, and I was happy with that price.’”
The vendors plan to move closer to their adult children on the lower north shore.
The property was one of 600 scheduled to go to auction in Sydney this week.
In Glebe, a single bid of $4.2 million secured the keys to a four-bedroom terrace in the prestigious Toxteth Estate.
Two parties registered on the day to bid for 20 Toxteth Road but when the auction opened, no one raised their paddles. The auctioneer then placed a vendor’s bid of $4.1 million. A bidder, an investor with an interest in blue chip property, offered a further $100,000 and the property sold.
The property had a reserve of $4.2 million, the same as the guide.
Sales agent for BresicWhitney Inner West Chris Nunn said some buyers saw current market conditions as an opportunity to bid for a property with less competition.
“At the moment, nerves are getting the better of people, and it’s leaving a good opening for discerning buyers who can hold their nerve to purchase at a fair price,” he said.
Robyn Willis is a property reporter and the former lifestyle editor for The Sydney Morning Herald and The Age.
