Auction Showdown in Magical Murrumbeena

Buyers fought over this post-war property with great renovation potential
Photo: Woodards

On Saturday I attended an auction with a lovely client who has been looking for a home with his wife for three months, which is not a short space of time in this current property market.  

However, when we consider that the Christmas and January shut-down dominated much of this period, it has been sensible on their part to wait for the New Year’s listings in the hope of finding a home for the right price.

“Recent comparable sales analysis is crucial, particularly in a strong market.”

Their dream area is in Melbourne’s south-east and their ideal price is around the $800,000 mark. With a generous budget and a wish-list that is not unreasonable, why have they now missed out twice at auction?  

Couples in Their Thirties Magnetised by Solid Brick, Post-war Homes 

Unfortunately for them, a combination of factors including market timing, low stock levels in their chosen area and strong competition all played a part in their case.

They love the period detail of the solid brick, post-war homes that Bentleigh, Murrumbeena, Carnegie, and parts of Chadstone offer, but so do many other couples in their thirties.

My clients were keen to revamp the old kitchen
Photo: Woodards

We (I can still say ‘we’ as I’m not yet forty!) love the idea of taking an original 1940s or 50s brick house and renovating it, for example by stripping back the wallpaper, gutting the kitchen, opening up dining room walls and polishing hardwood boards to create our own 2014 character home oasis.

Since 47 Lindsay Avenue had great renovation potential, the devastation caused by the sale result was palpable for many young buyers on Saturday, including my buyer.

Comparable Sales Analysis Crucial Preparation Before Auction Date

As a buyer’s agent, we have an important role to play and a set of tasks to complete in the right order leading up to the sale date. Aside from assessing and selecting the right properties for our clients, we need to be acutely aware of values in the given area. 

“The nervous buyers were all in my client’s age group and they all appeared to have the same plans of renovating the property and making it their future home.“

Recent comparable sales analysis is crucial, particularly in a strong market – and in today’s market the sales data collated must be the latest and also needs to be refined.

This original property has two bedrooms and is located on a great street, set on a corner block of less than 550sqm. Subdivision potential was not discussed and developer activity was not obvious.

In fact, the nervous buyers were all in my client’s age group and they all appeared to have the same plans of renovating the property and making it their future home.

Buyers’ Shoulders Slumped as Showdown Reached Climax

My comparable sales analysis helped to determine a walk-away figure of $831,000.

My buyer was calm, the rain held off, the crowd was keen and the auctioneer was ready to make a sale.

One of two double bedrooms
Photo: Woodards

The bidding started at $700,000, some $20,000 into the quoted range and bidding took off between four or five buyers. The agent declared it on the market at $800,000 and bidding increments tick-tacked between $2,500 and $10,000.

“As I said to my buyer, it only takes two emotionally attached people to turn an auction into a good showdown.”

When things seemed to have stalled around the $860,000 mark, a new bidder called out a bid and the two remaining bidders fought it out, the younger couple painstakingly reaching for another thousand dollars every time he rounded it up by ten thousand.

His final bid of $890,000 secured the property and a few shoulders slumped across the crowd, though obviously not those of the neighbours!

Don’t Underestimate the Power of Supply and Demand

So what did we get so wrong? Was it the appeal of this unrenovated post-war house? I think not. Many in the area offer this style of property.

What about the shortage of stock available? Possibly.

Did we undervalue the popularity of this evergreen suburb which is close to the shops, in zone one and offer other houses from a similar era? Absolutely.

As I said to my buyer, it only takes two emotionally attached people to turn an auction into a good showdown. And a showdown it was for 47 Lindsay Avenue.

I find myself and my lovely buyers now back to the task of finding another post-war, unrenovated home in this tightly held patch.

We can search for a smaller block, an inferior house, or step a suburb or two further out. We can also try hard to find an off-market opportunity or a private sale property.

However, what we can’t do is underestimate the power of supply and demand, especially when emotions are at play amongst competing bidders.

For more information about Murrumbeena, read our suburb profile here

Points of Interest in Murrumbeena, Postcode 3163

Murrumbeena Primary School
St Patrick’s Catholic Primary School
Murrumbeen Train Station
City of Glen Eira