Agent thrilled as house sells for 56 million per cent over reserve

Agent thrilled as house sells for 56 million per cent over reserve

17 February 2015 by Nick Bendel 2 comments

Television cameras were on hand as a vendor’s gamble to set a $1 reserve for his property succeeded.

The four-bedroom home in the Sydney suburb of Blacktown sold for $565,000 at auction on Saturday.

Starr Partners Fairfield director Raj Bhandari, who had suffered sleepless nights in the lead-up, was relieved with the result.

“We were looking for somewhere between $550,000 and $570,000 as a decent price,” Mr Bhandari told Real Estate Business.

“The vendor was more nervous, but I wasn’t too far out. He had a lot of money at stake. From my perspective, we were nervous because we wanted to achieve a good result for the vendor and to come out with our reputation intact.”

Mr Bhandari said the auction had a fun, community feel, with more than 100 people in attendance.

“A lot of media were there – Channel Seven, Channel Nine, Channel 10, The Daily Telegraph and The Sydney Morning Herald,” he said.

“The first bid was $1. Then it moved to $30, then $100, then $500, then $5,000, then $50,000, then $400,000 and then it was a genuine auction.”

Mr Bhandari told Real Estate Business last month that he had tried to talk the vendor out of setting a $1 reserve.

"I told him it was crazy. The risk he’s taking could exceed the result he gets from the increased competition,” Mr Bhandari said at the time.

Although the strategy succeeded this time, Mr Bhandari said he would try to dissuade other vendors from repeating the trick.

“I’ll let them know that the media attention may not be as good the next time because it would be the second time,” he said.

“I’d also let them know they don’t have any protection and hope to talk them out of it.”

The median house price for Blacktown reached $537,000 in January, according to CoreLogic RP Data statistics.

That marked a 20.7 per cent jump on January 2014, a 41.3 per cent jump on January 2012 and a 60.3 per cent jump on January 2010.

[Related: Top growth cities of past decade don’t include Sydney]

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
REVEALED: The 10 best agents in Australia for 2017

For the first time ever, the top 10 agents in the REB Top 100 Agents ranking are revealed in this exclusive podcast. ...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
Do you have an industry update?