‘Out of the ordinary’ properties often sell with unpredictability

We were engaged by a lovely couple to help them acquire a property which was due to be auctioned this weekend just gone. They had fallen in love with a property which was particularly unique and in a very popular location, so we quickly geared up for due diligence and auction preparation.

The property they chose is a converted old pub in Essex St Footscay and boasts one of the most elaborate conversions we’ve had the pleasure of seeing. Located on a quieter street than most old pubs, this impressive three storey design (incorporating an underground cellar) attracted many buyers, but as we’ve experienced before with unique homes, the agents found the campaign a real challenge, particularly in terms of identifying likely buyers.

When buyers inspect ‘out of the ordinary’ properties, particularly those which are impressively specified, many are doing so for personal interest or curiosity (and not the intention to buy).

Converting an iconic or historical dwelling is a dream held by many.

And people will always enjoy gleaning ideas from others’ renovations.

The typical agent-advocate conversations ensued late the week prior. I needed to gauge the level of interest I could be facing and the numbers of potential buyers who could be attending. We had settlement terms to decide upon and I needed to refine my bidding strategy and address the likely possibilities in my pre-auction meeting with our buyers.

Knowing instinctively that these types of properties can optimally suit young couples, down-sizers or singles, I was not anticipating family buyers. However I did know that if I had a challenger, there would be a strong emotional element to their bidding, as this property had every right to steal hearts. It was not just a nicely renovated pub. It offered every chef’s extra, from plate warmer to steam oven. The stunning vantage point over Essex St from the private balcony upstairs, and the auctioneer made sure he mentioned how meticulously detailed this property was including the heating provided for those who enjoy sitting out on the balcony in winter time.

As I stared around the crowd I could already identify one keen buyer but not more.

The other buyer had asked enough pre-auction questions of the agents before the bell rang for me to know he and his partner were seriously considering bidding. From what I could detect, auction day was the first time they’d inspected the property.

Buyers like this are referred to as ‘walk-ups.’

They inspect out of mild interest on the day and decide on the spot to bid. They take everyone else by surprise, including the agents, and can devastate a well-organised buyer who has planned for this day for the past four weeks.

This buyer had a soft spot for the property. He used to drink there back in its day.

Kicking off the bidding was certainly his signal that he was confident enough to buy without due diligence. Followed by a vendor bid from the auctioneer, I glanced around the crowd in an effort to identify any other potential bidders before being satisfied it was likely just a two-horse race, and from there I bid a ten thousand dollar bid as boldly as I could. Another ten thousand dollar bid each still didn’t place the property on the market, but by this stage my contest was shaking his head. The auctioneer coaxed two more five thousand dollar bids out of him and my final shout of “a thousand!” saw him opt out.

The property was passed into me.

Negotiations were tough, as they often are on a passed-in bid.  With an additional two thousand dollars offered, the property was sold to our excited buyers who remained in a bit of surprised shock.It took over an hour for contracts to be finalised and it was a proud call when I instructed them to come inside.

Wishing them years of happiness in their beautiful home…