The Australian Financial Review has spoken to the team behind the most intriguing recent property sale for our column, How it Sold.
The property?
A three-bedroom Californian bungalow at 25 Loudon Avenue, Haberfield, NSW. Sold off-market for $2,030,000.
Who was the agent/agency?
Michael Tringali, McGrath Estate Agents Inner West - Leichhardt.
How long was this on the market?
[Michael] It wasn't on the market.
Why did this one sell?
The buyer had missed in a sealed envelope auction on the house next door and was keen, eager and ready to go.
Was it overpriced?
No.
What did you think it would go for?
Around $2 million.
What was surprising about it?
The buyer was the underbidder on the house I'd sold next door at 2A Chelmsford Avenue. He'd conducted his research and discovered that the [owner of this house] had lodged a DA [development application]. There was going to be a renovation going on next door. He was planning minor extensions, going up to put on more living space, along with a new kitchen, new bathroom and new fitout.
He said to me: "Do you reckon they'd sell next door? It's on the corner and that suits me better." I said: "I'll ask if they are." We asked the owner if he would consider selling. The owner said: "If the price is right, we would sell." I asked them to get a contract. Once they had a contract drawn up, the buyer looked at it. Once the buyer looked at it, he basically made an offer straight up and down. It was done in a week before Christmas.
And he paid even less than the $2.1 million next door went for?
On this one he will probably have to do extra renovations. But it allows him to do more in his style. Therefore, it's probably going to cost him the same, but he's got the location he wanted.
Do you reckon we'll see another result like this: a) next week b) next year c) next cycle d) never?
a) Given the heat of the market, we may sell another one next month. I've got two campaigns in the same suburb running at the moment, which allows me to assume we're experiencing the same level of momentum with buyer enquiries we were experiencing in December last year. The majority of those enquiries seme to be coming from buyers who lost out last year and weren't able to purchase prior to Christmas. They seem to be the most active buyers in the current marketplace.
