A “beautiful” home in the Noosa region has sold for way above its reserve price, as auctions remain the dominant method of sale.
The property went for 80 per cent more than expected, with two bidders jostling until the hammer struck at $3.5 million.
Tom Offermann Real Estate principal Tom Offermann said the result provided the sellers with a surprising and much-needed pay day.
“They were on the phone to one of our agents (at the auction) and could not believe what they were hearing,” he said.
“There were circumstances surrounding the sale that I can’t come into but suffice to say the windfall was a godsend for them and could not have come at a better time in their lives.”
The home went to a local couple.
“They had just sold another property through our company, so it was important for them to have somewhere to go, and it (the property) suited (them) perfectly,” he said.
“It’s a beautiful home.”
Mr Offermann did not reveal the address of the property “out of sensitivity for the buyers who paid such a premium”.
He said the price was pushed up due to an intense bidding war between two parties “who just had to have it”.
“The premium really resulted from the competition created through the auction process, which can become very emotional,” he said.
“One fear that buyers have is that they are paying too much, but in an auction, buyers can see what other buyers are willing to pay in a transparent open environment and that makes them comfortable continuing to bid.
“In most cases, buyers set a limit that they will go to, however in this case it seems that the limit was set pretty high, if in fact there was a limit.”
Mr Offermann said auctions had been the dominant method of sales for more than a decade, adding that is the most effective strategy for all properties, regardless of value or type.
“Auctions are great for sellers because they ensure that the best price is achieved through competitive bidding, and the contracts are always on a cash unconditional basis without a cooling-off period, finance conditions or building and pest inspections,” he said.
“The buyers are required to satisfy themselves with all matters prior to the auction, so the sellers can feel confident when the property sells under the hammer that the sale will proceed through to settlement.”
But he said homebuyers had plenty to gain from auctions as well.
“For buyers, it is also beneficial because they can get a quick decision and the negotiation is done in a fair and transparent open environment,” he said.
Mr Offermann believed auctions would remain the preferred option for sales.
“Auctions are here to stay,” he said.
“They have been the dominant method of sale in Melbourne for 50 years. It just took other states a bit longer to understand them and for agents to learn the process.
“There is a specific skill set that needs to be learned by agents, so it’s important that if you are selling that you make sure your agent has the experience and training to conduct the entire campaign through to a successful outcome. It’s a whole different process to private treaty sales.”
Offermann Real Estate also recently sold a five-bedroom home on McAnally Drive at auction for $13.5m, after five bidders competed for the mansion.
Meanwhile, a well-known and conspicuous house perched on top of the Sunshine Coast was sold under the hammer via Next Property Group on Saturday.
No.15 Foote Ridge at Buderim, with its striking yellow residence, went for $4.6m.
Auction results
39 Court Road, Nambour
Sold under the hammer for $635,000
2 Bed, 1 Bath, 3 Car
Ray White, Kathryn Willshire
11 Centenary Crescent, Maroochydore
Passed in for $1.35m, contact agent
5 Bed, 3 Bath, 2 Car, Pool
Ray White, Jason Mills
40/67 Regatta Boulevard, Birtinya
Sold prior to auction for $535,000
2 Bed, 1 Bath, 1 Car
Ray White, Brent Higgins
27/143 Mooloolaba Esplanade, Mooloolaba
Sold prior to auction for $1.35m
2 Bed, 2 Bath, 1 Car
Ray White, Caleb Clarke
501/14-20 Aerodrome Road, Maroochydore
Passed in for $940,000, contact agent
2 Bed, 2 Bath, 1 Car
Ray White, Pam Thomas and Sarah Olsen
2406/1A Mungar Street, Maroochydore
Sold under the hammer for $665,000
2 Bed, 2 Bath, 2 Car
Ray White, Niall Molloy and Ari Whisson
15 Foote Ridge, Buderim
Sold under the hammer for $4.6m
4 Bed, 4 Bath, 2 Car, Pool
Next Property Agents, Richard Scrivener and Loren Wimhurst
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