30 May 2011

The clearance rate for this week was 59% as reported by the REIV. Out of a total of 829 reported auctions, 487 were sold and 342 were passed in. The NPB clearance rate for the week was 60%, with 6 of the 10 properties we reviewed selling.

There were many auctions we attended this weekend where the properties were passed in and some of those were sold afterwards by private negotiation.

30 Dally St Northcote is a nicely renovated single fronted Edwardian with wide frontage and very good car accommodation. It was quoted $720-790k and that failed to attract a single bid other than the agent’s bid on behalf of the vendor to start proceedings at $700,000.  There were no further bids and property passed in. With a reserve of $765,000, the property remains for sale.

A small crowd gathered at 17-19 Hodson Rd Warrandyte to watch it pass in on a real bid of $1.275m.  This beautiful property with views on over 4500sqm of land was initially quoted by Fletchers at the right level $1.2-1.3m, however the quote range was lifted to $1.25-1.35m in the week leading up to auction, indicating there was either considerable interest or the agent had unrealistic vendors. Not surprisingly the latter was correct as a closer look at the comparable sales in the area indicated it was worth around 1.25-1.3m. The auction only attracted one “real” buyer. There was a very low opening bid from someone at $1.1m however the agent quickly moved to $1.25m on a vendor bid which was followed by a real bid of $1.275m. The property was passed in and the highest bidder was informed the reserve was $1.4m. A final offer from the buyer of $1.3m was rejected by the vendor and the property remains for private sale for $1.4m.

In Hawthorn East, around a dozen people braved the cold and watched an uneventful auction at 3/43 Clifton St. The villa unit with renovated kitchen was quoted at $500-550k and failed to attract a single bid. Passing in on a vendor bid of $530k, the property was later reported as sold at an “undisclosed” price.

The full list of the properties we reviewed this weekend:

Suburb Type Beds Quote Result
Caulfield North Apartment 2 $420-460k SOLD $500k
Hawthorn Apartment 2 $445-475k PASSED IN
Hawthorn East Villa Unit 2 $500-550k SOLD AFTER
Elwood Apartment 2 $530-570k SOLD $582k
Blackburn House 3 Above $590k SOLD $660k
Heidelberg House 4 $700-770k SOLD $802K
Northcote House 2 $720-790k PASSED IN
Ashburton House 2 $740-810k SOLD $850k
Warrandyte House 4 $1.2-1.3m PASSED IN
Brighton East House 4 $1.7-1.85m PASSED IN

There are approximately 785 auctions are scheduled for next week while the following week will be quiet due to the long weekend.

Don’t be afraid to negotiate hard on a pass in scenario if the conditions are conducive to doing so. Equally, don’t let a good opportunity slip through your fingers if it’s a good property and the price is fair and reasonable. Do your research and happy property hunting.

Antony Bucello
National Property Buyers
0418 131 950