When eager bidders come together to fight it out for the house of their dreams, the reserve price has already been set.
The property officially goes on the market when hopeful buyers shout out competitive offers that match the predetermined reserve price.
But for all vendors, a dream auction is one that receives offers well above the reserve.
Ray White Norwood sales executive Brandon Pilgrim was bowled over by a property that he sold in 2021 that went half a million over the reserve, so when 1 Ware Street, Vale Park exceeded the reserve by $740,000 he was stunned.
“In this market, it’s a little bit more common, but still, I don’t think many people, any real estate agents would be able to tell you that they’ve done it too many times in their careers,” he said.
How does a property sell for more than expected?
Timing is everything
There were 44 bidders registered for the Sunday afternoon auction for 1 Ware Street, Vale Park.
The two-bedroom, Adelaide home was originally expected to go between $1.2 and $1.3 million.
“That’s what the owner agreed was probably a market value based on recent sales,” said Pilgrim. “But we definitely had no idea that it would go to this sort of level.”
Location was one factor that played a big part in the property’s success but so was the state of play in the current market.
“It’s one of those things where there’s not really much stock on the market at the moment, so that’s part of it,” he said.
“Then it’s just a bit of a rare opportunity as well, where it’s a corner block allotment with the potential to probably put up to three townhouses on it.”
“It’s just a function of timing,” said Di Marzio. “At the time there was a lack of stock, there wasn’t a lot on the market and there was a lot of pent-up demand. So it was really the perfect storm.”
First impressions go a long way
Beyond those external factors, the presentation of the property is integral in achieving a successful sale.
The Melbourne home in Balwyn North backs onto a beautiful reserve, revealing a stunning outlook that caught the eye of buyers.
Originally tipped to go just above $2 million, the four-bedroom property sold for $2.76 million, more than half a million dollars over the reserve.
“First impressions are very, very important, all those things play a key part in the eventual price,” Di Marzio said.
For the prized Vale Park property Pilgrim knew that the value was in the land but presentation was still a priority.
“Obviously, you’re selling the dirt that’s there but you still want the dirt to look nice and present well,” he said.
“The big thing about having a land site is people need to be able to see the actual size of it, you’ve got to make it look as big as possible.”
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