A completely original, 2 bedroom 1970’s apartments sold on Saturday in the beautiful suburb of Armadale for $712.500, this may seem extremely high to you and that’s because it is. Our research shows that there has only ever been one other 1970’s apartment to sell in Armadale for over $700k so this result was extraordinary.
The whole sale was completely transparent, the quote range was $560,000 – $600,000. We have since found out the reserve was $600,000, so there was nothing untoward about the marketing of this property. There was one particular aspect of the auction day that did stand out, and that was that there were four different buyers advocates bidding for this property (us included) in the end it came down to two prominent advocates battling it out.
From a distance it really did look like battle of the ego and you have to wonder how much of that increased the price.
We take an entirely different approach when bidding at auction. First we establish where we see value and why. Then we advise our clients not to attend, we don’t want the emotion to come into play on auction day when bidding for an investment property – another one will always come up. In addition to that, we are fee for service rather than commission, so if we miss this one we know we will find another.
Some advocates see things a little differently. They have a view you should basically buy good property at any price as in 10 years time it will all be irreverent. In many ways this is true, however, it does make you wonder what they were actually offering their client in the first place, particularly as it was an openly listed property and they just paid whatever they had to in order to purchase the property?
This story may also beg the question as to why so many advocates saw value in this property over others, well I’ll tell you why. Its located in Armadale, it was large, front of block with a deep balcony – it is genuinely a great property that will see long term capital growth.