Inner Melbourne’s cheapest house sells for $701,000 after competitive bidding war
A three-bedroom house in Spotswood billed by its agent as inner Melbourne’s cheapest has sold under the hammer for $701,000.
The timeworn home at 10 Robb Street had a price guide of $600,000 to $660,000, which Buxton Inner West agent Matthew John found was unmatched by similar-sized freestanding houses listed within 10 kilometres of the CBD.
The single-fronted Victorian had intact period features but was in need of a makeover, with aged wallpaper, a vintage bathroom and flamboyantly patterned carpets. It had been lovingly held for 45 years by the late owners.
The property was one of 556 scheduled to go to auction in Melbourne this week.
The buyer, from neighbouring Seddon, confidently beat her only competition – a first home buyer couple – to pay $101,000 above the $600,000 reserve.
“There were a lot of people who decided in the week leading up to the auction that they weren’t going to pursue it once they got some numbers and costs done,” said John.
He said the buyer had previously completed a period home renovation and fell in love with the house’s character and history. She opened the auction with a bullish $670,000 bid.
“That was her tactic – to start really strong,” John said. “There were another two groups there with some form of interest, but they just didn’t get the chance to bid.”
The bids tightened from $5000 to $3000 and finally $1000 increments. The first home buyers topped out at $700,000, and the successful bidder needed just $1000 more to finish the job.
The first home buyers were seeking a property near their parents that they could renovate. One of their mothers was bidding on their behalf.
John said the neighbourhood had become popular thanks to the Grazeland Melbourne outdoor dining precinct.
“It’s a nice residential street with other period homes, and is only two streets away from the train station and Spotswood Village, which is very popular,” he said.
In Carlton North, a professional couple are the new owners of a classic, three-bedroom brick terrace, after a post-auction negotiation that netted a $1.2 million result.
Agent and auctioneer Andrew Melilli of Nelson Alexander Carlton passed in 29 Davis Street after a single bid from the couple of $1.11 million.
Potential buyers in the crowd kept their cards close to their chest, and with no further bids, Melilli took the couple inside for discussions.
The reserve had been set at $1.22 million – the top of the $1.11 million to $1.22 million guide – but the vendor was content to sign it over for $1.2 million.
The deal was the culmination of weeks of strategy. The home was on the market in May when the federal budget, which included changes to negative gearing and capital gains tax, was announced. It went to auction, but passed in amid shaky sentiment.
Melilli reduced the original guide of $1,275,000 to $1,375,000, and reignited the campaign.
“The auction process is becoming more of a pure transparency, market value exercise,” he says. “It’s not necessarily transacting at auction, but everything is still transacting.”
The property has a loft retreat, and the versatility attracted the buyer.
“It has got a beautiful facade and street appeal, but the flexibility of the floor plan is what’s really good for a professional couple,” Melilli said.
In Mount Waverley, three young families competed for a four-bedroom townhouse in the Mount Waverley Secondary College zone.
The buyers, who were upsizing from an inner-city property, paid $1.13 million for 1/25 Torroodun Street, against a reserve of $1,020,000. The campaign guide was $990,000 to $1,089,000.
Of the active bidders, one was renting locally and the other was from the south-east suburbs. Agent Nicholas Richards of Ray White Mount Waverley said the move-in-ready nature of the home was a drawcard.
“Some wanted to do some updates, but it was a comfy home to move into, versus a property that was perhaps land value only or needed a lot of work,” he said.
Bidding opened at $900,000 and rose in $10,000 increments. The pace quickened when the home was announced on the market, ending on a poignant note.
“It was a bit emotional because one of our bidders was there with their children, and that’s how auctions are,” Richards said.