An agent has defended a $1.25 million guide price for an inner-Sydney home that sold at auction for an impressive $1.83 million following criticism from the buyers.
The three-bedroom terrace home in Darlington, that has a ground floor room which can be used as a fourth bedroom, garnered huge interest on Saturday despite a slow start to its campaign.
The run-down home eventually sold for $1.83 million after the auction began at $1.3 million, with a first home buyer couple in their 30s fending off six other bidders.
While overjoyed with their purchase close to the Carriageworks and Redfern station, one half of the successful couple told The Sydney Morning Herald he believed the guide price, which had been revised down from $1.5 million, was "nonsense".
"That has reflected in where the bid has gone. It’s a real trend that is happening at the moment. Low prices are being advertised in order to get crowds like this," he said.
Agent fires back over claim
Yet selling agent Adrian Tsavalas of Adrian William defended the guide price and revealed to Yahoo News Australia it was in fact the couple who had helped shape the revised price.
"Funnily enough when we were operating with a guide price of $1.5 million his wife said 'it's not worth that and we'll pay you $1.25 million... We might think about paying a little bit more'," he said.
"So the guide price was based on his nonsense."
He said others had indicated they were "not interested" at $1.5 million as the property needed too much work.
Mr Tsavalas predicted a full renovation of the property which would add a garage and studio could cost up to $1.25 million. Such costs, inflated by increased labour and material costs, are deterring many buyers and current homeowners, he said.
The Inner West agent believed the sale price of the home, which sold for nearly 50 per cent more than its guide price, was an "anomaly" when comparing it to similar recent sales in the area.
Market is 'finding its feet'
All eyes are on the Australian property market after a rapid period of growth in recent years has been met with interest rate hikes and a cost of living crisis.
Yet Mr Tsavalas does not believe prices are going to drop in the way widely predicted, with some saying homes could lose up to 20 per cent of their value in the next 18 months.
"Regardless of interest rate rises, I think the market is starting to find its feet," he told Yahoo.
"I think this sale proves that the auction process is still alive regardless of market conditions."
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