A brought-forward auction delivered a Christchurch couple a “life-changing” result after their Halswell home sold for $70,000 more than what they had already agreed to sell it for.
While more properties passed in than those that were sold at some of Christchurch’s auction rooms last week, most of the brought-forward auctions not only sold, but also netted their owners the equivalent of some people's annual salaries as competition for limited stock ramps up.
The auction for a modern four-bedroom, two-bathroom home on Whitnall Street, Halswell, opened and was announced on the market at $940,000 before five bidders pushed it up to $1.01 million in Harcourts Gold’s auction room on Thursday.
There were 50 groups through the Whitnall Street property in the first week of open homes and about six pre-auction offers were made, which Harcourts Gold auctioneer Mark Morrison said was almost unheard of.
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He said brought-forward auctions where the properties sell for more than what the owners have already agreed to sell for can be life-changing.
“It can be hugely life-altering. I don’t know about you, but if you thought you were going to have $940,000 and then 10 minutes later you have got another $70,000.”
The Whitnall Street owners had already made an offer on another house so having an extra $70,000 made the equation much more comfortable for them, he said.
“I always tell owners before the auction, you are in a great position because they know they are selling at that exact figure, and sometimes we get a bit of icing on the cake.
“If I got an extra $70,000 on something, that's huge – that’s a lot of people’s annual salary type thing.”
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Meanwhile, three bidders also battled it out for another family home in Halswell, this time on Donovan Street. The house was announced on the market at $1.061m and sold $29,000 later for $1.09m after 49 bids were placed.
Morrison said quality family homes in good areas and which have been built post-earthquake like the Whitnall Street property are always sought after.
The original 1960s home on Hawthorne Street, Strowan, sold for $1.005m after five bidders fought for the home in the sought-after suburb. Photo / Supplied
“I think brought-forwards are always a sign of confidence – that’s what I take from that. The buyers are confident to move forward and they are actually trying to secure their property future, by making a pre-auction offer.”
Four of the six properties called at Harcourts Gold auction yesterday sold under the hammer including one brought-forward auction.
An original 1960s do-up on Hawthorne Street, Strowan also nabbed the estate an extra $55,000 at a Bayleys Canterbury auction this week after four buyers battled it out for the home at an entry-level price point in the sought-after suburb.
The brought-forward auction for the three-bedroom, one-bathroom home opened at the accepted pre-auction offer of $950,000 and shot up in a mix of mainly $1000 and $5000 bids as three other buyers fought over the deceased estate. It eventually sold under the hammer after 25 bids for $1.005m to a young couple planning to rebuild on the site.
The Hawthorne Street home, which has an original kitchen and bathroom, was marketed at both renovators and developers. Photo / Supplied
The home, on a 852sqm section, has been in the same family for 50 years and was described in its listing as an “original 1960s treasure” that would benefit from refurbishment including a new kitchen and bathroom. It is zoned for the popular Christchurch Boys' and Girls' High and Heaton schools.
Bayleys national auction manager Conor Patton said the interest was likely due to the fact it offered buyers the rare chance to get into the area for around $1m.
“Just to get into that area, to get a land size that big in that pocket is not that easy unless you want to find a fully renovated one and spend significantly more. “
A house on Lake Terrace, Burwood, also had additional bidders pushing the price over the accepted brought-forward offer. Photo / Supplied
Two buyers also battled it out for a newly-painted four-bedroom two-bathroom home on Lake Terrace, Burwood, which eventually sold for $781,000 – $31,000 more than the offer that was good enough to prompt the owners to bring the auction forward.
Patton said there had been a spate of pre-auction offers in the last few weeks and about 50% were getting additional bidding.
At the peak of the market about 80% of brought-forward auctions had further bids but this dropped to about 20% six months ago, he said.
“And now that’s starting to ramp up again.”
Patton said the rise in brought-forward auctions and increased competition over them was due to a lack of stock in Christchurch and buyers having more confidence around interest rates and being able to access finance easier.
Of the eight properties called at Bayleys auction yesterday, the brought-forward auctions and a lifestyle property on Maskells Road were the only properties to sell. A large 11-bedroom, 11-bathroom mansion, known as Hackthorne Gardens, that has been on the market since October last year is among the properties that passed in.
And auctions are continuing to be forward with both Harcourts Gold and Bayleys already aware of several more next week. A property at 3 Stedley Place, Heathcote and another at 24 Jenkins Avenue, Redwood is now being called on Monday, while 111 Aylesford Street, St Albans is also ahead of schedule and will now be held on Thursday.
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