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July 26th
The Melbourne property market is settling down nicely into it's usually winter norm. There are usually a few sales that will fly and a few that won't. Buyers are faring a little better than vendors just at the moment as the stock levels are a bit above average but a 67% clearance rate in the heart of winter in Melbourne is certainly nothing to sneeze about.
The JPP team contested only four auctions at the weekend after three successful purchases earlier in the week. We were successful in two. The interesting auction was in an inner South East suburb. An agent quoting $450k - $500k received an unconditional offer on Wednesday evening of $532,500. This was rejected, as it probably should have been. The property was worth low to mid $500's. At auction on Saturday the auctioneer opened on a vendor bid at $450k. After receiving no bids, the auctioneer went inside to receive instructions. He came back out and again asked for any advance to his vendor bid. He was grateful to receive a genuine bid of $460k. After no further bidding the auctioneer again sought instructions from his vendor. After this second break he began talking about the possibility of a pass in and finally solicited another bidder to enter the battle with $470k. This was relatively short lived with another bid of $475k seemingly stopping the nervous bidder in his tracks.
Lo and behold, the auctioneer needs more instructions from his vendor. It was actually becoming a little amusing and the crowd was beginning to wonder whether the vendor was running the auction by remote!! After the third resumption the property was announced "on the market". To say this was a surprise was the understatement of the century. After a fourth stoppage and two more bids, the property was sold at $495,000. This was $37,500 below the unconditional offer that was rejected three days earlier.
I am still uncertain as to the motivation of the vendor but we were happy to buy a property well below the comparable sales in the area.
Thanks very much to all those who came and saw us at the Home Buyers Show at the Exhibition Buildings over the weekend. It is always a real buzz catching up with past clients as well as speaking to so many new people that haven't heard about Buyer Advocacy.
If you are thinking of buying a property in Melbourne, either as an investment or to live in, please do not hesitate to give us a call.
Ian James
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