Inner-west two bedder sells for $915,000 after auction pass-in

An investor selling a Seddon property, in Melbourne’s inner west, settled for less than the reserve price in post-auction negotiations with a single bidder.

The two-bedroom house at 16 Charles Street sold for $915,000 and had a price guide of between $890,000 and $950,000. It had a reserve of $920,000. It features high ceilings, timber floorboards and period fireplaces.

The property was one of 1071 scheduled to go to auction in Melbourne this week.

Jas Stephens Real Estate lead agent Andy Simpson said out of two interested bidders, only one – a first home buyer – turned up to Saturday’s auction and opened with a $900,000 bid.

“I then placed a vendor bid at $910,000, and they went again at $915,000,” Simpson said.

“It was very quick, and we passed it in [after] the one at $915,000 and the owner accepted that price after auction.”

Simpson said the vendor was an investor who lives on the other side of the city.

“I would suggest [they were selling for the same reasons] as other investors at the moment, with all the taxes coming in. It’s just not viable any more.”

He said first home buyers had become “a little gun shy … after reading about the property market in the media. So the numbers have been a little bit low in terms of attendance and interest.”

Simpson said he was still getting interest from interstate investors, mostly from Sydney.

In Melbourne’s middle north, a first home buyer couple paid $880,000 for a family home in Thomastown after outbidding a fellow first time property buyer in a rapid-fire auction.

The house at 167 Victoria Drive, featuring three bedrooms, a large backyard and an extensive security system, was guided at between $780,000 to $858,000. It had a reserve of $875,000.

There is no legal requirement for a vendor’s reserve to be in line with their property’s price guide.

Harcourts Rata & Co lead agent Mario Tucci said two of the three registered bidders competed for the home.

“The opening bid was $780,000, and it went up by 10s [$10,000] and 5s [$5000 increments] until the end,” he said.

Both active bidders were young, first home buyer couples searching for a family home, Tucci said.

”[The federal budget] has wiped out all the investors … which is very unfortunate,” he said.

“Because now investors are only going to be buying brand-new properties, it’s just pretty much owner-occupiers buying at the moment.”