A dilapidated terrace in Bondi Junction sells at auction $520,000 over reserve. Photo: Jeremy Piper
A dilapidated Bondi Junction terrace, where buyers were warned to “enter at their own risk” has sold for $2.72m, $520,000 over reserve.
Crumbling plaster, rocky floorboards and broken tiles didn’t deter the 16 bidders, many of them builders, hoping to breathe life back into the Birrell St home.
Bidding was fast and furious, opening with a bid of $2.05m, with five actively bidding.
Belle Property Bondi Junction principal and listing agent Edward Brown was surprised by the result, noting it sold for more than they expected, after guiding around the $2m mark.
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Inside the run-down home. Photo Jeremy Piper
“It was interesting, how do you price a property like this given how much work it needs? It’s not liveable, you’ve got to start from scratch,” he said.
Yet the “blank canvas,” of the rundown home was exactly what drove the interest, he added.
“There’s nothing in this home that people want to retain other then the front,” he said.
“So then you’re not paying a premium for a house that you can move into straight away,” he said.
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Dilapidated property sells for $2.72m. Photo: Jeremy Piper
Proximity to Bondi Junction shopping centre, rear lane access and the potential to add a garage and studio was also appealing to buyers, he added.
Mr Brown said fully renovated terraces in the area could sell between $4m-$4.5m.
The Vendor, Charles Ritten, had owned the home since 1979 and was present at the auction with his ex-wife Catherine Ritter in support.
“We are very happy, it’s even a bit higher then we hoped,” Ms Ritter said.
He had moved to a flat nearby a few months earlier that was easier to maintain.
Buyer and builder Andrew Eyon. Photo Jeremy Piper
Ms Ritter reported that the property had never been renovated and “had always been in a poor state of repairs, and I didn’t have the time to help him renovate,” she said.
The buyer, Andrew Eyon, was a local carpenter who planned to flip and sell the home with his business partner who also attended the auction.
“It’s always a good time (to flip and sell)” he said, adding the rate cut had “definitely changed my perspective as its easier to afford things now,” he said.
Cooley’s Auctioneer Jake Moore calls the auction. Photo: Jeremy Piper
He hoped to complete the renovation in about six months, expecting it would cost around $500,000.
Cooleys Auctioneer Jake Moore said the heated competition had fuelled the high result.
“When you’re buying in a good location and you’ve got that many bidders, it gives you confidence,” he said,
“When there’s 15 other people wanting it for that price as is, if he does a beautiful renovation, he’s probably going to make money.”
MORE HOT AUCTIONS
A Campbelltown home has fetched a whopping 39 registered bidders selling for $1.1m, $300,000 over reserve.
The 50-year old rundown abode at 12 Reddall St was a deceased estate and appealed to young families, first home buyers as well as developers interested in the large block.
It was well below the average condition of a home in the area, according to LJ Hooker agent John Zheng.
“It was an amazing auction,” he said. “(It sold) well beyond my expectations.”
12 Reddall Street, Campbelltown.
The property to a young family who plan to renovate the property who had a young daughter that went to school in the area.
The opening bid started at $680,000 and took 20 minutes to reach the final result.
Other bidders included a mix of developers, builders and young families and couples.
Crowd of around 80 people for the Reddall St auction.
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A Kirrawee home has sold for $1.73m, $120,000 over reserve, to a brother and sister duo buying their first home.
With Dad bidding on their behalf, the siblings came out with a strong opening bid of $1.65m, $40,000 above the reserve, knocking out five of the seven registered bidders for the home at 56 Johnston Ave.
56 Johnston Avenue, Kirrawee, NSW real estate
McGrath St George’s Michael Lloyd said “the first bid blew (the others) out of the water.”
“We did not expect it to be that strong and that initially bid eliminated most of the bidders,” he said.
“They came with a plan and their dad was bidding for them, they had missed out on a few other properties and thought we aren’t going to miss out again.”
The home was at the end of a cul-de-sac and had a pool in the yard.
The siblings had been living at home, saving up for a deposit to purchase together, according to Mr Lloyd.
“I’m really happy to see young buyers getting into the market.”
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