The Australian Financial Review has spoken to the team behind the weekend's most intriguing property sale for our column, How it Sold.
The property: A two-bedroom, one-bathroom first-floor flat at 3/33 Carabella Street, Kirribilli NSW 2061. Sold at auction $1,202,000.
Who was the agent/agency?
Dan Tussie, Deborah Richardson Real Estate, Kirribilli. Ian Morison, vendor.
How long was this on the market?
[Dan] We listed it prior to Christmas and opened it up until three days before Christmas. I wanted a fairly good run. Because there was nothing on the market, I was flooded with enquiries. I opened it up again in the first week of January and ran it through till the 28th. l thought I needed that time for people's lawyers to come back from their boozy holidays.
Why did this one sell?
It was dead plain and ugly as sin. But the position is stunning. It faced east, north and west with no common walls.
Was it overpriced?
Clearly not. I don't feel property is overpriced if two bidders are fighting for it to the very last dollar. If it had passed in and we had to bump them up, then perhaps that property was overpriced.
What did you think it would go for?
I thought it would sell for $1,150,000.
What was surprising about it?
It was owned by five siblings and was originally owned by their grandmother, who bought it for about 12,000 pounds in the sixties. [£12,000 in 1965 was equivalent to $313,437 in 2016, according to the RBA's Inflation Calculator.] It was emotional. They had gone there as kids, they'd visited her there as children. The '60s pink and blue bathroom was in immaculate condition and a there was a retro kitchen with the original cupboards and all in absolutely pristine condition. It had been rented for many, many years. It was a long, hard decision to sell. I think I appraised, appraised it and appraised it over the years until the decision was made that it was hard to deal with. The five grandchildren were my age – in their 60s or 50s. It was difficult coming to decisions with five of them, especially if money needed to be spent on it.
I was only dealing with one of the siblings, but he was the toughest. He was quite bullish in price, whereas the others may have been more reasonable to deal with, price-wise. He was very, very tough to deal with. I had to adjust my guide on the website several times as he kept upping the ante. My original quote price was $980,000 to $1,050,000 and as I started to get offers around $1,000,000, $1,050,000, he upped the ante. As I get $1.1 million, he's saying, "It's clearly worth more." The eventual reserve was $1.2 million, which was unrealistic. I didn't think the property was of the calibre to fetch that price.
At the auction, we announced it on the market - much to his dismay, but his brother talked him into it - at $1,140,000. I warned him the hammer could go down at $1.14 million but with the bidders going for it, I said this was a good risk. It was. Between the two bidders it went right up the extra $62,000. He wrapped his arm around me and said, "I knew you could do it, Dan" and gave me a huge hug.
[Ian] In my view the unit was worth every cent of $1.2m. During the sale process, I acted in a fiduciary capacity for my siblings, and withstood the agent's calls that we accept various lower offers. So the message to all vendors is to make the agent work hard so you get a good result, rather than a quick result. That's tough or just sensible?
[Dan] It was bought by a family for their daughter, a youngish daughter. I would imagine she would be in her 20s.
That's one way around the affordability barrier, isn't it?
It's the only way, let's be honest.
Do you reckon we'll see another result like this: a) next week b) next year c) next cycle d) never?
a) Hopefully next week. Give me one. Have you got an old grandma?
