A dated Kew house has sold on a $46,000 knockout bid to a buyer who first visited it on auction day.
The entry-level house on a 400sq m allotment attracted three bidders and sold for $1.05 million.
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Bidding started at $900,000 and quickly rose to $1 million.
The home at 93 Pakington St was called on the market at $1.001 million as bidding slowed to $1000 increments.
But the final knockout offer took the home to almost $50,000 past its reserve.
It had been advertised with a $1-$1.1 million asking price ahead of the auction.
Nelson Alexander Kew auctioneer Cameron Ingram said the $1.05 million final bid had caught him by surprise.
“I thought he said 50 cents, but it was $50,000,” Mr Ingram said.
The two underbidders had both made pre-auction offers for the home below the $1 million mark, and both bid to a higher level. But it was the third bidder, a young family, who hadn’t been to the home previously who had set the standard for the year ahead.
“That gives you confidence that people are willing to bid like they were a few years ago,” he said.
“This was entry-level Kew, so it was a good test.
“The market has found a level, last year the market was turning quickly, but now it has found its feet.”
Despite the strong auction activity, the area’s prices had declined and most of those selling in the area had now met buyers’ expectations, he said.
The vendors inherited the property in sad circumstances and will use the proceeds of the sale to buy their first home.
They now plan to relocate to Melbourne’s western suburbs.
They were thrilled it would now continue its legacy as a family home, with the buyers planning to renew the house and live there.
The vendors’ parents had lived at the address for decades, buying the house, which had a party wall to their own parents’ home next door, so they could care for them later in life.