Downsizer nabs $1,515,000 renovated Northcote house after reserve cut

An architecturally renovated house in Northcote sold in post-auction negotiations for $1,515,000 to a downsizer, after an adjustment to the reserve price sealed the deal.

The three-bedroom house at 79a Thomson Street features high ceilings, a sleek kitchen and an al fresco deck and separate courtyard. It was listed with a price guide of $1.5 million to $1,585,000.

The property was one of 913 scheduled to go to auction in Melbourne last week. By Saturday evening, Domain recorded a preliminary auction clearance rate of 57 per cent from 655 reported results throughout the week, while 81 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.

The results came as economists warned of the chance of another interest rate rise when the Reserve Bank meets next week to tame persistent inflation, which could limit how much money potential home buyers can borrow.

The Northcote auction began with a vendor bid of $1.5 million, the bottom of the quoted price range.

But with no further offers, the home passed in and post-auction negotiations began.

A downsizer from Melbourne’s north-eastern suburbs bought the home for $1,515,000. The reserve was $1,544,000. The vendor will also downsize.

Nelson Alexander selling agent James Pilliner said it was common to have a one-buyer auction at the moment, and vendors in this market want to put a deal together.

There was another potential first home buyer for the house, who wanted to make a post-auction offer subject to a building inspection, Pilliner said.

“They are kicking themselves they didn’t get their building inspection and get themselves ready to bid,” he said. They feared the price would surpass what they could afford, but it ended up within their budget, the agent said.

“Buyers have got to get themselves ready for auction with finance and building inspections because vendors that are going to auction are looking to do a deal on the day … not two weeks after,” Pilliner said.

In Yarraville, a young couple who had spent months looking for their first home paid $1,172,000 for a family home at auction on Saturday.

The three-bedroom house at 65 Severn Street was listed with a price guide of $1,065,000 to $1,170,000.

Two bidders competed, and the auction began with a vendor bid of $1.06 million. It was followed by a genuine bid from the eventual winner of $1.08 million.