Knockout bid secures first home in the outer north for $760,000

A three-bedroom home in Epping, in Melbourne’s outer north, drew such fierce bidding on Saturday that its vendors increased their reserve price during the auction, and sold it for $760,000.

The home at 8 Cerise Avenue, which comes with two bathrooms, a four-car garage and is move-in ready, was listed with a price guide of $665,000 to $731,500.

While its initial reserve was $680,000, Areal Property North lead agent Justin Sciola said five bidders were competing so decisively that, after an opening bid of $650,000, he advised the vendors to lift their reserve to $700,000.

“I told them to increase the reserve price, so I think we did have the interest above $700,000,” Sciola said. “To be fair, they [the vendors] would have made a decision around the $680,000 mark just to move it on.”

After bidding in increments of $10,000 and $15,000, a couple looking for their first home for 15 months, countered a $737,000 offer with a knock-out bid of $760,000.

“The underbidder had just sold his house and he was bidding strong, he was bidding in fives [$5000 increments] and then the buyer that bought it … they were bidding in winning 10s [$10,000 increments], and they jumped at, you know, 23,000,” he said.

Sciola said while the market was flooded with a lot of investor stock needing “a lot of property work”, it was not all “doom and gloom”.

“Investors are dumping their stock and trying to capitalise on what they can, but good homes still sell in a great market regardless of the times,” he said.

The property was one of 182 scheduled to go to auction in Melbourne this week.

In Melbourne’s outer-south east, a renovated two-bedroom unit in Clayton South with a reserve of $520,000 passed in at auction after only one genuine bid.

The home at 3/13 Oakes Avenue, featuring a fully renovated bathroom and located close to Clayton shopping precinct, had a guide of between $495,000 and $540,000, said Shanky Walia, a lead agent with Ray White Clayton.

Walia said despite there being two interested bidders, only one made a bid with an opening offer of $480,000. With no counter-offer, Walia said he made a vendor’s bid of $500,000, after which the home passed in.

The sale is now being negotiated with both parties, a downsizer couple who made the single bid, and an investor.

“Both said they will have a chat with the family and get back to us … we will most likely have an increased offer from the downsizer,” Walia said.

“They recently sold their property and are taking into consideration that they have to put some money into the home to fix it.”

Walia said the market had probably slowed this weekend due to the AFL grand final and next week’s predicted interest rate rise.

“Overall, first home buyers are very active, as well as upsizers and family home buyers,” he said.