This Eastwood property sold for $1 million above reserve.
IT is an ordinary house in an average Sydney suburb, but for the owners it held a $1 million surprise.
The only thing unusual about the small, three-bedroom home at 13 Richards Ave in Eastwood, northwest Sydney, is the 999sq-m corner block.
But estate agent Wayne Vaughan - who sold the house last week for an amazing $2.385 million - said even that didn't account for it reaching $1 million above reserve, proving there is no limit to what desperate buyers will currently fork out for their dream home.
"In 24 years I have never seen anything like it," Mr Vaughan, of McGrath Epping, said. "There's just no rhyme or reason behind it."
Crowds at the Eastwood auction.
Agents are often accused of setting price guides too low to achieve a big result, but this was not the case, according to Mr Vaughan.
"We looked at recent sales in the area," he said. "During the campaign, a five-bedroom, two-bathroom house at 16 Auld Ave (an adjoining street) sold for $1.48 million. That was on 1030sqm.
``Another home at 4 Auld Avenue sold for just over $2 million. That was one of the best homes in the suburb and was sitting on 1200 sqm, which highlights how amazing this result was."
Large blocks usually attract developers, but the winning bidder was a mother and son team.
"Developers looking to subdivide were out of play from about $1.2 million," said Mr Vaughan. "It was an estate property, so the son and daughter handling it have both become instant millionaires."
Inside the Eastwood property.
During the bidding, the vocal crowd helped push the price well beyond reason.
"Before the auction, I hadn't even contemplated anything over $1.5 million," Mr Vaughan said. "Those big crowds help build the atmosphere. There was a huge cheer when it hit $2 million."
The sale coincides with the release of a study showing an increase in Australians blowing their budget to secure properties.
The CommBank Home Loans report found one in five homebuyers paid over budget for their last property for fear of missing out. More than half panicked and negotiated a price before doing their due diligence, putting them at risk of mortgage stress.
"There are huge risks," said Clive van Horen, CBA general manager, retail products and customers. "It is one of the biggest decisions most people will make in their lifetime, financially anyway."
Inside the Eastwood property.
Some rushed in after their previous property sold and they needed to find somewhere to live quickly, while others were driven by lifestyle issues, such as a new baby.
Mr van Horen said RP Data figures showed an increase in buyer competition in most capital cities, with days on market and vendor discounting figures down.
"Both those measures are telling us there is more demand," he said.
Robbie and Natasha Sekel went $15,000 over budget on their house at 4 Garrett St, Maroubra.
Natasha and Robbie Sekel at their home in Maroubra.
"There weren't many semis around in our price range," Mr Sekel said. "We knew that if we missed out, we might not get another shot."
The couple bought at auction, outlasting two other serious bidders.
"We had done all our numbers beforehand and knew what each bid meant regarding repayments," Mr Sekel said. "I was selling a unit at the time and we bought this one before we'd sold, which wasn't the plan, but we didn't want to miss out."
Natasha and Robbie Sekel at their home in Maroubra.
Negative body language from other bidders prompted the Sekels to keep going higher.
"We were responding with our bids very quickly, while the others had to be pushed into each new bid by the agent," Mr Sekel said. "Once they started going up in smaller increments, we could smell blood."
The Sekels were nervous at the time but believe they made the right choice.
"We've had to watch our money since, but if it means one less holiday, then it's worth it," Mr Sekel said.
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