Prices is Maribyrnong?

[willfong]

Having purchased our first IP in Maribyrnong recently we have been following the prices in the area with interest.

A couple of auction results from yesterday surprised me.

http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104318941&f=0&p=10&t=res&ty=&fmt=&header=&c=33894423&s=vic&tm=1194762065
An old 3br weatherboard (refurbished inside) on a 650m2 on raleigh road (one of the main roads), advertised for $470k+, sold for $648.5k.

http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104350310&f=30&p=10&t=res&ty=&fmt=&header=&c=28665643&s=vic&tm=1194762081
Another old 3br weatherboard (not refurbished) on 692m2 on mitchell road, advertised for $450-490k, sold for $636k.

http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2006635107
Another old 3br sitting on a huge 1500m2 was recently advertised for $1.25M and sold for $1.95M This one has nice view though.

Now that might seem normal (for the price to go so much above the advertised price) in the east, but we don't see many of them in the west. For those who know the area, did the buyers pay too much for them or has the market really gone up that much recently?

 

[suburbangirl]

IMHO the price really has gone up that much.

It's auction results like this that are pushing buyers into surrounding Braybrook and Sunshine.

 

[Michael Yardney]

The fact that properties sell above the advertised auction price doesn't mean anything.

You are assuming that the advertised price is really what the agent or the owner expects to get - and that's not really the case.

Agents are notorious for underquoting just to get people to auctions. By law they are not allowed too advetise a price range less than 10% below what the owner expects to get, so they can advertise a property for $465,000 and really expect to get $500,000.

 

[willfong]

Thanks for the replies.
Michael, it's not just the fact that they sold for 30+% above the advertised range that surprised me. Similar properties in the area actually sold for within the range they advertised (450-500k) as recent as a few months ago, eg. http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=103977118&f=140&p=10&t=sol&ty=&fmt=&header=&c=2256541&s=vic&tm=1194821056 this one on nearly 700m2 was sold for $452k just six months ago. It's just scaring inexperienced buyer like me to see the price jump so much in the past six months.

 

[Dis]

Agents are notorious for underquoting just to get people to auctions. By law they are not allowed too advetise a price range less than 10% below what the owner expects to get, so they can advertise a property for $465,000 and really expect to get $500,000.

The other one I commonly see is agents saying the vendor's expectations has risen as the campain has progressed. So at the start of the campain the property was $300+. If you try and put in an offer well above what should be the vendor's expectations eg $350, you get told the vendor has revised his selling price due to strong interest in the property. Its rare that I see the advertising change to reflect this change in pricing.

 

[Buzz]

This months Your Investment Property magazine has chosen Maribyrnong as one of the two suburbs to watch and quote a 8.35% increase in values in the last 3 months and 13.3% year on year.

That might go someway to explaining what you are seeing.

Jane