Someone explain today's strange auctions

[chunho01]

I just attended two auctions today, and was quite confused by what I saw. They are both double storey apartments in the same compound, just mere steps away from each other.

Auction 1:

• Took place morning
• Completely unrenovated, but decent condition with only cosmetic wear
• Bigger backyard
• Front facing North East
• Unstaged (no fancy furnitures, etc)
• Realestate.com.au advertised as 'Townhouse'
• 4, 5 bidders; from $350k to sold price $425k

Auction 2:

• Took place afternoon
• Renovated; decking backyard (but no grass anymore), painted interior, recarpeted bedrooms
• Smaller backyard
• Front facing North West
• Staged (contemporary furnitures and art wallpapers and all, radio playing some classical jazz)
• Realestate.com.au advertised as 'apartment'
• One bidder only; one bid, $340k
• Later sold for $410k after negotiation

What in the world happened??????

 

[Ace in the Hole]

So the one with smaller back yard and worse aspect sold for 15k less.
The important part is the end result, which seems quite normal.

 

[Scott No Mates]

So the one with smaller back yard and worse aspect sold for 15k less.
The important part is the end result, which seems quite normal.

Sounds about right. What did your research show on historical sales within the block?

 

[chunho01]

So the one with smaller back yard and worse aspect sold for 15k less.
The important part is the end result, which seems quite normal.

The end result is reasonable, but the auction?? I'm not confused by the result, but the auction itself. Similar amount of attendance, but only one bid at $340k?? While the morning one had 4 bidders furiously bidding.

Surely someone would've known the property is more than $340k.

Sounds about right. What did your research show on historical sales within the block?

History price:
2012 - approx $390k
2013 - approx $400k
2014 - approx $410k

 

[dan_89]

Post link to both?

 

[chunho01]

Post link to both?

http://www.realestate.com.au/property-apartment-vic-maribyrnong-119041967

http://www.realestate.com.au/property-townhouse-vic-maribyrnong-119086287

Guess which one got the 'one bid' at way below market price, bet you would be as confused as I am if you found out which is which.

*Edit: both auctioneers are very professional, so that's not the reason

 

[Jamie_]

The second one..
i.e. unit 5, considering your reaction, and the auctions times
9/3-5 Grandview Avenue Maribyrnong Vic 3032 11am
5/3-5 Grandview Avenue Maribyrnong Vic 3032 2pm

 

[chunho01]

The second one..
i.e. unit 5, considering your reaction, and the auctions times
9/3-5 Grandview Avenue Maribyrnong Vic 3032 11am
5/3-5 Grandview Avenue Maribyrnong Vic 3032 2pm

Oh well..

But I'm still confused why there were no interest at 5/3.

Am I missing blatantly obvious signs? (Other than the North East facing advantage, and the slightly bigger yard 9/3 has)

 

[Rolf Latham]

The one that soldfor the higher price was a "blank canvas"

Sounds really dumb, but thats a not uncommon thing

ta

rolf

 

[marg4000]

Go online and view the auctions of the last series of The Block.

5 apartments were fairly similar but quite different results.

Auctions are most successful when you have several very serious bidders.
Marg.

 

[vbplease]

The one that soldfor the higher price was a "blank canvas"

Agree.. from what I see unrenovated properties get a lot more interest than the renovated ones.

Everyone is a renovator now that the block type shows started.. Apparently it's dead easy and you're guaranteed to make money

 

[chunho01]

While confused, my take is that it is just mere coincidence that there were no bidders present at the 2nd one.

Agree.. from what I see unrenovated properties get a lot more interest than the renovated ones.

Everyone is a renovator now that the block type shows started.. Apparently it's dead easy and you're guaranteed to make money

But the 1st auction sold at $425k, that's already at market price (slightly beyond actually...); any furthur renovations would not guarantee gains IMO?