A family of four have pushed a two-bedroom South Melbourne townhouse to a “dream price” in post-auction negotiations.
While two families bid for 218 Pickles St, most of the action took place after the property passed in.
An eventual $850,000 was the vendors “dream price” and emerged after a tough auction that fell short of the mark, according to The Agency auctioneer Peter Kakos.
The auction started on a $770,000 vendor bid, before a family jumped in with a $10,000 rise — enough to stall the auction and send Mr Kakos inside to consult with the vendor.
When he returned a second family joined in, but a subsequent bid from the first bidder stopped any further activity at $800,000.
Despite just $30,000 in bidding, post-auction negotiations added another $50,000 to the figure.
Mr Kakos said with another bid or two the home would have been called on the market at around $820,000.
“But $850,000 was the dream price, though the vendors would have taken something in the lower $800,000s,” Mr Kakos said.
The modest auction activity also reflected a common trend in today’s market, with many prospective bidders choosing to sit on the sideline — or being forced to by their lender.
“There were a few more there who didn’t bid, and one was because of finance — and that’s one of the big factors in the market,” Mr Kakos said.
“That’s the biggest thing holding things back.”
Having two families contest the home, despite the slow market, showed people were ready to get on with their lives despite what the wider market is doing, Mr Kakos said.
Local schools and the affordable price, compared to most of the surrounding suburb’s homes were key to their interest.
“Increased infrastructure in terms of schools is bringing families to the area … and they don’t just want an apartment, they want their own space,” Mr Kakos said.
“It goes back to living within your means. New lending criteria has made people assess what they can actually, truly afford.
“There’s great opportunities, it’s just being patient.”