Property FAIL: Couple who thought they could make a killing by renovating in overheated market didn't attract a single bid for their $2 million home

  • A couple paid $1.01 million for the terrace house
  • They have spent a further $400,000 renovating the Redfern property, in inner-city Sydney
  • Over 18 months it has been transformed from a two-bed to a four-bed home
  • But the stylish house did not earn a single bid at auction on Saturday 

By SARAH DEAN FOR DAILY MAIL AUSTRALIA

Published: | Updated:

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A couple who poured $400,000 into a two-bedroom cottage in a bid to turn it into a stylish family home have been left disappointed after it failed to attract a single bid at auction.

The couple paid $1.01 million for the terrace house in Redfern, an inner-city suburb in Sydney, 18 months ago, Domain reports.

After months of toiling the house is now beautifully renovated - but it doesn't have a new owner just yet.

At the front, a new picket fence, synthetic lawn and roof have been added.

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The house used to be a modest one-floor terrace 

The house used to be a modest one-floor terrace (left). It has now been transformed into a stylish four-bedroom house (right)

The back garden has been modernised, with the washed-out patio being transformed into a stylish, slick grey yard featuring floor lighting.

Inside, the home there is now three bathrooms, and four good-sized bedrooms including one with an ensuite.

The desirable property also features an open-plan kitchen and living area with plenty of natural light.

The only part of the original terrace that still remains is the front room.

The property in Redfern, inncer-city Sydney, has been revamped and modernised at a cost of $400,000

The property in Redfern, inncer-city Sydney, has been revamped and modernised at a cost of $400,000

The backyard was once a washed out patio (left), now it is a slick grey outdoor area perfect for entertaining (right)

'Skylights and wide glass fill the space with natural light': As part of the revamp the house has been opened up to become more spacious

'Skylights and wide glass fill the space with natural light': As part of the revamp the house has been opened up to become more spacious

The couple had hoped to sell the house on Saturday after their real estate agents, Bresic Whitney, listed it with a price guide of more than $1.95 million.

However, despite a current clearance rate of 84 per cent in Sydney’s auction market the house at 1 Charles Street failed to earn a single bid from the 30 people who came to see it go under the hammer.

The couple told Domain.com: ‘We actually didn't want to go to auction in the first place. It’s such a unique home we just wanted to put it up for sale.’

HOW TO BUY AT AUCTION, ACCORDING TO EXPERT ROBERT LAROCCA 

  1. Have a really clear established budget before you go near the auction. You might fall in love with that home but you will end up paying for the outcome for 30 years. Understand the price that the house sells for is determined by everyone else at the auction. Even though the marketing might say it will sell for a certain amount it's about the other people there they may have a bigger pocket.There 2-3,000 homes a week at auction so accept it might take time and protect your finances by sticking to your budget. Be prepared to walk away.
  2. For some people bidding at auction can be very nerve-wracking. It's worth considering hiring a buyer's advocate, which is a real estate agent in your team to find and buy the house. If you're busy and nervous and worry it can be worth investing in some professional expertise
  3. It's always good to take a long someone to the auction who is not as emotionally involved in the transaction as you are. They can be a voice of reason.
  4. You want to make sure you've gone to the house well before the auction date and have another look on the day of the auction.
  5. Go and look at the neighbourhood at another time. Have a look at the streets you are buying in so you can imagine where you could be living. See it at the weekend when you want to enjoy it.
  6. Where you start your biding is not really important, it's where you are ending it. In the end the selling price is determined by other people. Bidding aggressively and scaring people away will just be stressful.
  7. Do your research. There is an incredible wealth of information, look at recent sales, go to other auctions in that suburb and get a feel of the market conditions.

The property is listed for sale on Bresic Whitney’s website for $2,150,000.

'JDH Architects-designed, this terrace was rebuilt throughout with obvious attention-to-detail. Skylights and wide glass fill the space with natural light,’ the website says.

‘It's an impressive result for an inner-city laneway setting.’

Daily Mail Australia has contacted the couple for comment.

The couple had hoped to sell the house on Saturday after their real estate agents listed it with a price guide of more than $1.95 million

The couple had hoped to sell the house on Saturday after their real estate agents listed it with a price guide of more than $1.95 million

Inside, the home there is now three bathrooms, and four good-sized bedrooms including one with an ensuite

Inside, the home there is now three bathrooms, and four good-sized bedrooms including one with an ensuite

The house at 1 Charles Street failed to earn a single bid from the 30 people who came to see it go under the hammer

The house at 1 Charles Street failed to earn a single bid from the 30 people who came to see it go under the hammer

At the beginning of February, the Reserve Bank decided to cut the cash rate by 25 basis points meaning the typical standard variable mortgage rate is likely to go down to 5.7 per cent and discounted variable rates to 4.85 per cent; the lowest cost of mortgage debt since July 1968.

The lower mortgage rates appear to have added further fuel to what is already a strong housing market. 

Last month RP Data reported dwelling values in Sydney were set to rise by more than one per cent over the month of February as the house market continues to set new record highs.

Head of research Tim Lawless said: 'It may take some time for the lower interest rate setting to flow through to an acceleration in dwelling values, however early indicators show the market is responding to the lower cost of debt.

'Auction clearance rates hit the highest level since 2009 over the weekend.'

HOW TO SELL AT AUCTION

  1. Get a great real estate agent. It may sound obvious but you need someone who knows the area you are trying to sell in and has a good network of buyers that they know.
  2. Find three agents that are obviously active in your area and interview them. They will come and sit down and give you a pitch. Listen to it and their marketing campaign and ask friends because the most important step is not the commission but actually how much you can trust them. Get some word of mouth experiences in the local area.
  3. Make sure you have a good marketing campaign. Don't skip on the costs. Excellent high quality photos are the most important thing as most people do there first bit of shopping online. When you do the advertising make sure it is targeting the people who would buy your home. For example a city apartment should not really be marketed at families.
  4. Don't wait too long until the end of the year. Prices drop in December as you get a lot of homes on the market and a lot of options for buyers. Getting in early can often mean you sell at a time that you can go and spend your earnings on a new home for yourself, as every seller is usually a buyer too. Sometimes your life gets in the way so people will wait and see the results of the market in August in September and then make a decision to sell. It's not a disastrous outcome but you can put yourself at an advantageous position by getting in early.
  5. Staging is important. Making your house look pretty to sell. The biggest step in that is de-cluttering and removing all the stuff that you accumulate and clutter your house up with. You want to make it a house they can imagine their own lives in and not see it filled with your life. It's an enormous effort, removing some furniture, stuff from benches, taking down photos - it's almost half moving out. Moving is never ever simple or fun.
  6. Auctions can be a highly emotional day for a buyer and seller. Place your trust in your real estate agent and go and sit inside. You've spent a lot of money hiring a well skilled real estate agent and auctioneer. Trust in them and give them clear instructions.

 

 

 

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