No. 24 Stanley St at Tempe was a standout auction on Saturday.
A Californian bungalow in an unliveable state has scored the vendor a financial windfall after selling for $1.2m at a pressure cooker auction that saw 18 buyers register.
The price was not only $300,000 above reserve, but was $280,000 more than what the seller paid for 24 Stanley St at Tempe a year ago when it resembled a house. After stamp duty, this equates to the owner pocketing over $4000 for each week they owned the house.
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Day & Hodgson Real Estate’s Tony Day said the owner had gutted the home ahead of a planned renovation before deciding to sell it.
The Stanley St house had 18 bidders.
The interiors were completely dilapidated with the ceiling missing, floors covered in dirt and a room without walls or a roof. The bathroom had a half used pack of toilet paper, cracked walls, mud in the bathtub and dirt everywhere.
A total of 18 parties registered with eight bidders taking part after auctioneer Rocky Bartolotto opened proceedings at $900,000.
The auction lasted for about 20 minutes despite the first $200,000 worth of bids increasing in increments of up to $50,000.
The owner had demolished most of the interiors before selling it.
A large number of builders and developers expressed interest in the property.
After the home was called to market at $1.150m, the action dried up, with the last three parties trading $1000 bids for all but four offers placed in the final $50,000 of bidding. The house sold for $1.2m to a couple who plan to complete the renovation and add an extension.
Realestate.com.au reveals the sale price is only $50,000 below the median house price in Tempe.
Mr Day said it was an incredible result considering the home looked to be in a far better state a year ago.
Auctioneer Rocky Bartolotto. PICTURE: Adam Yip.
A room past this door has been completely demolished.
“For it sell for nearly $300,000 more than a year ago, and in this condition is a sign of just how strong the market remains,” he said.
Mr Day said he received more than 120 inquires over the campaign ranging first homebuyers to developers and builders.
In a heritage conservation zone, the buyers will have to ensure the renovation retains character features such as the facade.
A new oven can be found in the old kitchen.
Also in the inner west, a luxury terrace at Forest Lodge sold to north shore downsizers for $150,000 above the reserve at $2.65m.
They edged out an underbidder from Europe, who had not been able to see 197 St Johns Rd in person due to coronavirus restrictions.
Ray White Erskineville associate director Matthew Carvalho said more than 100 groups inspected the renovated contemporary terrace.
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