A savvy investor has won the keys to an Adelaide property by frightening off the competition with a formidable opening bid.
“The investor had an original budget of $600,000 but after inspecting the property decided he would go an extra $50,000 to buy the property,” Mr Duff said.
“He started the auction with a $500,000 bid which was the price guide and this knocked out most of the other buyers who started to walk away.”
The investor then outlasted the underbidder and splashed $650,000 on the 151sq m property.
The seller had a reserve price of $550,000, and the strong result was due to the quality and presentation of the double-storey home and its low-maintenance features.
“There was a mix of investors and owner-occupiers among the registered bidders,” Mr Duff added.
“The interest was strong considering the current market with fewer buyers turning up at recent auctions.”
Sales records showed the seller purchased the property in 2016 for $375,000 and then made some improvements, with the sale netting a price gain of $275,000 in six years.
On the performance of the market in Adelaide, Mr Duff said the agency had performed well in 2022 with many outstanding results and an almost perfect auction
“Our clearance rate was more than 90 per cent until the end of August and sellers have had a pretty good run as Adelaide house prices were affordable,” Mr Duff said.
“But we have seen a softening towards the end of August and some properties are being passed in at auctions.”
He noted that quality and well-presented homes would continue to perform well but older homes in need of renovation might struggle.
“Agents have to work harder to get results but there are still many buyers out there,” Mr Duff said.
“This spring, we might see less supply and this will keep prices steady as there are many buyers and investors, both local and interstate, keen to buy in Adelaide.”
The agency had its best July and August selling months due to the strong demand even in winter, Mr Duff added.
Another strong end-of-winter result was 81 Quinton Court, Pasadena, which sold for $855,000 at a midweek auction on August 25.
The property had a seller’s reserve of $800,000.
Barry Plant Norwood director Linda Baker said the four-bedroom house had good interest because of its water vistas, large 831sq m block size and renovation potential.