Preston bidding battle soars $190,000 past reserve, ignores correction
A Preston auction ended with applause and a handshake after it shot a huge $190,000 past reserve.
The four-bedroom house with a pool sold for $1.39 million to downsizers, who had their grandson bid on their behalf.
And despite a property market correction that had been expected to cut 10 per cent off the homes sale price, it was just $10,000 (less than 1 per cent) below a sworn valuation from a year prior.
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Five bidders vied for the renovated house at 9 Josephine Gve, opening with a $1 million bid and quickly reaching the $1.2 million reserve.
George Fafoutelli made the final bid $190,000 later on behalf of his grandparents, Helen and George, who recently sold their Reservoir home to a developer.
“We thought we would get there, I was pretty positive — we came prepared,” he said.
He was particularly happy to win and believed the market would begin rising soon.
Underbidder James Kaufman also believed the market will soon improve, and while the “fair fight” hadn’t gone his way, he shook hands with Mr Fafoutelli as a matter of “good form” after the auction.
“It’s disappointing today, but we will have another crack,” Mr Kaufman said.
“It’s the time to buy, loan applications are up so we will try to move quickly.”
Hocking Stuart auctioneer John Pasceri said while three more buyers had never had a chance to make an offer, the $1.39 million result had been far above expectations.
“The reserve was $1.2 million and we were hopeful it might get to $1.25 million,” he said.
“This result means buyers are screaming out for quality homes. There are not many great homes like it available, and that’s why we had so many bidders and in excess of 90 groups through the home.”
Vendor Adrian Volpe said after getting the house valued at $1.4 million last year, yesterday’s result was far better than expected, given the market had lost ground since.
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“I was a bit nervous about the sale, with the weather not being great and not certain if people would bid,” he said.
“But it’s good to get it sold. And I do like that I’ll be able to buy with less competition — that’s the saving grace for me.”