Melbourne vendor drops ‘yesterday’s price’ to secure sale

3 weeks ago 38

The three-bedroom townhouse at 2/13 Armstrong Rd, Bayswater, sold for $715,000 after five active bidders competed for the keys.

A Melbourne auctioneer has warned sellers not to chase “yesterday’s price for today’s marketplace” after a first-home buyer paid $715,000 for a Bayswater townhouse.

Five active bidders fought for the keys to the three-bedroom home at 2/13 Armstrong Rd on Saturday, pushing the result $65,000 above its reserve.

Bidding opened at $550,000 before the double-storey townhouse sold above its $630,000-$690,000 advertised price range.
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Ray White Ferntree Gully lead agent and auctioneer Austen Kosasih said the result showed realistic sellers were still being rewarded, even with buyers remaining price sensitive.

“The main ingredient to the success here is how open-minded and reasonable he is,” Mr Kosasih said.

“His reserve price was $650,000, which was the middle of the price range.

“He was happy to sell the property and it’s about being two steps ahead of the marketplace and not having yesterday’s price for today’s marketplace.”

The home attracted eight registered bidders and 75 groups through the door across the three-week campaign.

The Bayswater townhouse drew 75 inspection groups across its three-week campaign before selling above its advertised price range

Mr Kosasih said the agency had expected the property to sell for about $650,000-$680,000 before competition pushed the final price higher.

“We thought that $650,000-$680,000 was a reasonable expectation to have for this property, and then the market decided that it was worth $715,000,” he said.

The buyer was a first-home buyer, with the auction result showing entry-level homes in Melbourne’s east were still drawing strong competition when priced within reach.

The low-maintenance outdoor area helped attract first-home buyer interest to the 2/13 Armstrong Rd, Bayswater, auction.

Seller Michael Whelan said the auction had gone well after a strong campaign.

“It just went really well,” Mr Whelan said.

“We had about 30, maybe 34 people turn up for the auction, the auction team did a brilliant job.”

Mr Whelan said he expected to remain in Melbourne’s east when he bought again, pointing to Bayswater’s convenience as a drawcard.

“Bayswater is five minutes to the shops and close to the freeway,” he said.

Mr Kosasih said an interest-rate cut would help buyer confidence, but inflation, unemployment and political uncertainty would also shape the market in the months ahead.