Evidently there is still some punch in the real estate market if it’s the right property.
A neglected St Peters terrace riddled with cracks and patches across parts of the ceiling – which could cost up to $700,000 to repair – has sold for about $1.2 million at an auction attended by nine bidders.
Prior to the Saturday auction, the three-bedroom house on Sutherland St was filled with rubbish, rusted pots strewn across the kitchen and other junk coated in dust and grime.
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Little is known about the previous occupant, who was understood to have passed away a few years ago. The house was left unoccupied and in a decaying state ever since.
The $1,205,000 price was a surprise for the agents and executors of the deceased estate given the declining property market and soaring building costs. It was $105,000 over reserve.
Selling agent Adrian Tsavalas of Adrian William said most of the interest was from builders and other tradespeople, but there were some brave first homebuyers interested too.
The buyer was a young couple, who beat the builders.
“You’d need to be in a better position if you had a tradesman in the family considering the cost of the work required,” Mr Tsavalas said.
He added that a fixed up home in the location would be worth about $1.5 million-$1.6 million.
The home was hard to see when he first got the listing. “It was a mess. It was pretty overwhelming,” Mr Tsavalas said.
“Once we cleared all the stuff out, and there was a lot of stuff hoarded in there, it was apparent just how much damage there was.”
Mr Tsavalas said some of the problems included deep cracks in the structure. The interior was damp and musky and an old addition needed to be completely knocked down because it was unstable.
“You couldn’t live in it,” said auctioneer Clarence White.
Bidding opened at $900,000 and Mr White said the pace of bidding was reminiscent of a “warmer market”.