Market ‘buzz’ is back: inner west home sold for $150,000 over reserve in minutes
An inner west house has sold under the hammer for $2.65 million in a lightning quick auction that saw nine bids placed in a bidding war that lasted roughly three minutes.
Auctioneer Damien Cooley had barely finished his introduction of the property on Frazer St in Lilyfield when he received an opening bid of $2.3 million — $50,000 above the $2.25 million price guide.
The bid from a buyer’s agent was quickly countered with an offer from a developer at $50,000 higher.
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From there the offers flew in, jumping up in increments of mostly $50,000 until the developer submitted a bid of $2.65 million.
The auction was then paused as the buyer’s agent who made the opening offer phoned her client to consult, later revealing she was maxed out.
Mr Cooley did a quick scan of the crowd of about 20 people, including two other buyers who had registered to bid, and declared the property was “going once, going twice, sold”.
The final price was $150,000 above the reserve.
The auction had started at 9am and was all over by 9.06am, with Mr Cooley’s introduction to the home and the buyer’s agent’s time-out for the call taking up half of the time and bidding taking up the rest.
The speed of the sale caught some neighbours off guard, with one couple telling the Sunday Telegraph they were disappointed to have missed the entire event just because they arrived a few minutes late.
Selling agent Peter Gordon of Cobden and Hayson-Balmain said he too was surprised just how quickly the home sold considering the reserve price had already been optimistic at $2.5 million.
“It feels like confidence is returning to the market,” Mr Gordon said, adding that nearly 70 groups had inspected the property prior to the auction.
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Most of the interested buyers were developers and builders with hopes of unlocking the potential of the 903sqm block — an unusually large land allotment for Lilyfield.
“It’s the single biggest block that’s come up for sale in the area for quite some time,” Mr Gordon said prior to the auction.
The buyer is understood to be a developer with plans to carve up the block and replace the existing four-bedroom house with new dwellings.
Mr Cooley said there appeared to be more energy in the market since the Coalition’s surprise win in the election last weekend.
The win ended speculation that negative gearing tax concessions would be scrapped — a proposal Labor carried into the election.
“There’s a buzz at the moment,” Mr Cooley said. “People seem more willing to bid.”
Earlier this week, a block of 15 units in Chatswood sold for a total $10.8 million to an overseas investor prior to auction.
The block on Victoria Ave had been due to go under the hammer with expectations of selling for about $9 million but strong interest pushed the price up, according to selling agent Melanie Lahoud of Ray White-Unlimited.
Ms Lahoud showed about 50 groups of buyers through the unit block and said it was sought after due to its “blue chip” location in the heart of Chatswood. “It’s rare blocks like this come up for sale,” she said. “We got a lot of interest.”