NEIGHBOURS and buyers heading to bid at another auction are hardly the crowd to instil confidence in an auctioneer that there’s likely to be bidding on a property already passed over the previous year.
But the pair’s unexpected appearance underscored the ability of the auction process to draw buyers from a crowd and create bidding in a seemingly stale property.
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Buxton agent Ben Riddle, who faced the dilemma of cancelling the auction at 40 Nantes St, Newtown, late last week, found two buyers competing for the three-bedroom home they both hoped would be future projects.
The sale was one of 15 at the weekend as Geelong’s auction clearance rate lifted to 48 per cent.
Quoting a range from high $800,000 to low $900,000, the property sold for $950,000.
“Two bidders showed up, which were both unexpected,” Mr Riddle said.
“One was the next door neighbour who was always looking for projects but who wasn’t in that price range a couple of weeks ago when I spoke to them, but decided they’d have a go for it,” Mr Riddle said.
“The buyers we sold it to were a lovely couple who were looking at it to rent it out first and do something substantial with it down the track.
“They only saw it at the open house on the day and were actually on their way to bid at another auction they’d been to multiple times.”
Mr Riddle said it showed it only took two buyers to create the competitive environment to establish a good price for a property.
“That can happen a lot this year but we’re also seeing early signs of a market that is just coming off the boil,” he said.
Mr Riddle said buyer sentiment was more measured this year, meaning properties that sold with three bidders six months ago were more likely to pass in with one bidder.
“We’re seeing a market going back to a level playing field,” he said.
He said buyers should recognise that sellers choosing to auction their homes were probably highly motivated to sell.
“It’s a good way to create a deadline around a sale, creates some urgency in a market where
buyers don’t want to act with urgency any more.”
SEARCH THIS WEEK’S SALES RESULTS
Geelong’s auction clearance rate lifted to 48 per cent on a higher volume of properties, with 30 offered to buyers.
Homes to pass in were at Belmont, East Geelong, Geelong, Geelong West, Herne Hill, Lara and Newtown.