How it Sold: Russell Lea house drops from $2.4m to $1.9m – then sells at $2.08m

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Was it overpriced? Initially, yes. When we had price guild of $2.4 million it was overpriced.

What did you think it would go for? In the range we sold it.

What was surprising about it?

Managing the vendor to meet the market. We’re in a falling market so where they think the market is at, it’s even less then where they think it’s at. In a rising market you go to look at a $2.2 million property and it sells for $2.5 million because there are ten people who want it. It’s now the exact opposite.

Initially advertised with a price guide of up to $2.4 million in October, the house passed in with no bids in December.  Supplied

The biggest hurdle was us as the agents and our expectations being high – and the vendor as well.

We took it to auction on December 8 and there were no bidders. Post-auction we had bit of interest in the range of $1.9 million to $1.95 million, but the vendor was still thinking it should be well into the 2 [million]s – up around $2.2 million to $2.3million and then once post auction nothing happened in December.

We got into the New Year and the vendor was starting to realise maybe I am asking too much. She said “I’ll consider anything over $2 million, but try to get as close to $2.1 million as possible”.

We had the first open house again on 19 January. The two buyers came through that weekend. We had another six groups through, but those two indicated they were interested.

It took until the New Year for the vendor to question whether she was asking too much.  Supplied

We had an offer [from one of those parties] that week at $1.95 million. On 24 January they were at $1.95 million, then the next morning they came up to $2,050,000.

The night before [24 Jan] the other buyer called with a query about the contract. He had been through the house earlier in December, after it was passed in at auction. He called again the following morning. I said we had a buyer, had a contract and were going to exchange by lunchtime.

I said if you want it, you’ve got to be ready by lunchtime. He said “I’ll put in an offer of $2,080,000”.

I went to the first buyer and said I’m sorry but another buyer has offered a higher price. Do you want to offer more?

The eventual buyer was someone who first inspected the house post-auction. Supplied

They said “We’re firm at $2,050,000”. Then they left it.

When did you exchange with Buyer Two?

About lunchtime. It was a sellers’ market for the five years leading to 2017, now it’s become a buyers’ market, but if you have two buyers at the same time you can create that urgency.

Do you reckon we’ll see another result like this: a) next week b) next year c) next cycle d) never?

The final competition between two buyers sold the house for almost exactly the vendor’s reset asking price. Supplied

a) Probably next week. They are going to happen over and over again this year.

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