Sold For Less Than I Expected

It has been a real mix this weekend with several properties selling between the quoted range or just over.

I wanted to put in an offer for Jenkins St, Northcote prior to auction but the Real Estate Agent said that the vendors wanted to take the property to auction. Auction was scheduled for May 15, 2010.

The three bedroom townhouse on offer was very nice. It had good design features, a manageable rear yard and a garage.

The auctioneer from Nelson Alexander started the auction. After accepting increments of $10,000, the auction stalled at $895,000. Asking price was $770,000-$850,000. The auctioneer went inside to consult the vendor and when he came out he told the crowd the house was on the market. After several calls of him saying $895,000 once, $895,000 twice.... the house finally fell under the hammer for (you guessed it) $895,000. That's $45,000 over the quoted range.

I felt somewhat relieved that the vendor had not accepted offers prior to auction. In the past, I had attended "open house inspections" only to see the house sell prior to auction for well over the quoted range. (Sometimes up to $300,000 over the range). Agents even telling me that I needed to put in a "substantial" sum on top of the asking price in order to secure the property.

Had the vendor at Jenkins St, Northcote taken offers prior to auction, I would have paid at lease $30,000 over the selling price. I have missed out on a few properties this way but as I can see from this example, sometimes it's best to wait for the auction to see what actually transpires on the day.

I must say I was very surprised that Jenkins St, Northcote sold for $895,000. Considering a similar home in Rathmines St, Fairfiled sold on February 27, 2010 for aprrox. $932,000. I thought Jenkins St, Northcote was a much better property. It had a larger laundry, bigger back yard and nicer finishes (especially the floor boards). Rathmines St, Faifield was one of three on the block and also was part of an owners corporation.

I did not bid at auction for Jenkins St, Northcote and that's because I finally secured a lovely property of my own.