Buyers looking to secure properties with strong offers rather than face stiff competition under the hammer has been taken as a sign of higher buyer confidence in the Manningham market.
Barry Plant Doncaster East agent Todd Lucas recently sold two properties ahead of auction to impatient buyers unwilling to compete at auction.
A three-bedroom townhouse at 15 William St, Donvale sold for $1.1 million on November 6, well ahead of its planned November 16 auction.
“That was about $50,000 above where the reserve was likely to be,” Mr Lucas said.
A restless investor also picked up 4/20 Wetherby Rd, Doncaster for $600,000 on October 31.
“All the interest was around the low $500,000s,” Mr Lucas said. “This buyer was looking for an investment – they’d missed out on four already, they didn’t want to keep looking.”
Mr Lucas said being transparent with buyers about likely vendor price expectations led to realistic offers.
“There’s a lot of buyer confidence at the moment and buyers are trying to take properties off the market before auctions – they’re willing to pay above where the likely reserve is,” he said.
“If there seems to be a gap between the majority of buyers and one buyer wants to pay above that, that’s where we sell before (going to auction).”
A three-bedroom property at 39 Glenda St, Doncaster sold for $186,500 above the reserve price after bidding from five groups at the October 9 auction.
The house sold for $1,436,500 to a young family, after being announced on the market at $1.25 million.
National Property Buyers director Antony Bucello said fear of missing out was starting to become obvious in the lead up to Christmas.
“You can see the frustration and disappointment on the faces of the underbidders, not just because they’ve missed out on that particular property, but I believe also because they know competition is increasing,” Mr Bucello said. “You can see their shoulders and or jaws drop when the price exceeds their budget by significant amounts.”