Real Estate auction blog: Livestreams and rolling updates from the auction market

An Elwood home sale that became the world’s first virtual reality auction for a property has proven a success, with the vendors receiving a whopping $137,000 more than they expected.

The world’s first virtual reality auction was a success for 3/30A Ormond Rd, Elwood.

A converted Elwood church sold in what is believed to be the world’s first virtual reality home auction has smashed its reserve by more than $130,000.

It follows an emotional marathon sale in Vermont where the auctioneer was left joking he had lost his hair during the lengthy course of the call that soared more than $170,000 above expectations.

PropTrack figures show a hefty 935 home sellers have lined up to test the market this week, almost 200 above the same time a year ago, and you can watch livestreams and replays for many of them today (courtesy of Gavl).

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But perhaps the most notable was the Elwood auction where auctioneer Greg Brydon pulled on a set of virtual reality goggles so his vendors could see everything he did as it went under the hammer.

The property at 3/30A Ormond Rd had a $1.35m asking price advertised ahead of its auction, and that was set as its reserve.

While buyers initially tried to underplay the figure with a $1.275m, and after a few jokes were made about the headset being worn by the auctioneer, the home quickly reached its reserve.

Then it kept going, with the hammer not coming down until five bidders had a crack and the price shot to $1.487m — a hefty $137,000 above expectations.

Ray White auctioneer Greg Brydon expected to look “a bit odd” as he called the auction.

Before the auction Mr Brydon described it as “futuristic” and “like something out of a video game”, but today said it had worked seamlessly and been very effective.

It’s the latest way hammer time has gone hi-tech as part of a pandemic-era digital revolution that has sparked efforts to bring the still largely “pen and paper” sales method into the 21st century.

The VR auction is underpinned by Webtron, a Cheltenham-based tech firm, that has built a secure online auction platform.

AUCTION REPLAYS AND RESULTS

Real Estate Institute of Victoria president Jacob Caine said auctions were still a “pen and paper” event in many ways, and while he noted VR technology wasn’t yet at the level where it could beat being there for buyers — if it helped sellers deal with “nerve-racking” auction days, he said it could work.

“The REIV is all for innovations and technology to make the experience of buying, selling and renting more streamlined, so anything like this, we love it,” Mr Caine said.

“Let’s explore it and if it works, fantastic. If not, it’s on to the next thing.”

The REIV president added that they were actively looking to change legislation, which requires a paper contract of sale to be displayed on site at every auction, in a bid to make it easier to embrace new technology.

3/30A Ormond Road, Elwood, still looks very much the church it was from the outside.

“We are talking to Consumer Affairs Victoria about modifying the legislation,” Mr Caine said.

“The only reason most contracts are printed now is to have there on auction day … that can be 800 pages long for an apartment in a large building in Docklands, and then they (agents) destroy it.’

PropTrack economist Anne Flaherty said the rise of streaming auctions online had broken down barriers, but while VR technology was being used to sell homes off-the-plan it was untested in the auction market — making this week’s sale an important milestone.

2/663 BURKE RD, GLEN IRIS

2/663 Burke Rd, Camberwell, had multiple bidders in the hunt.

There were four bidders lined up for this four-bedroom Glen Iris townhouse, but only two made a move for it as it went under the hammer.

Belle Property director Steve Burke had the home at 2/663 Burke Rd listed for $1.4m-$1.5m and received a $1.4m opening bid.

A few offers later the home had reached its $1.45m reserve, but the two-horse race continued and the home didn’t sell until it reached $1.51m.

Mr Burke said the townhouse sold to a local family upsizing from an apartment nearby, while an investor had been the underbidder.

“Some people are still a little bit scared, but we are seeing a few more investors coming out to have a look,” he said.

The vendors, who had used the home as a Melbourne base while their children went to school and university, were thrilled with the result.

Earlier in the day, Mr Burke said a family home at 10 Grandview Ave, Glen Iris, passed in under the hammer at $3.29m. But with three parties in the contest, post-auction negotiations have the agents closing in on a sale for the 10-year-old Metricon build.

The home had a $3m-$3.3m asking price ahead of auction day.

88 DONNE ST, COBURG

The rooftop deck at 88 Donne St, Coburg, was enough for one bidder to make a move on it.

It was a case of one bidder and done for this vertical Coburg home.

Spread over four-storeys, the home at 88 Donne St has a four-bedroom floorplan and offers low-maintenance living as well as a rooftop deck with expansive views.

Ray White Brunswick’s Abdul Allouche called the auction and received a $1.05m opening offer.

Then things went quiet and he was forced to make a play himself with a $1.07m vendor bid.

That enticed a $1.09m response that was well into the $1.05m-$1.15m range, but when no further bidders emerged Mr Allouche went for a chat with the vendor.

He returned and put the home on the market immediately, but there was no further bidding and the home sold for $1.09m.

10/12 SYDNEY ST, CHELTENHAM

Neat as a pin and sold above reserve: 10/12 Sydney Street, Cheltenham, did well at auction.

There was a blow-ball start for this two-bedroom unit in Cheltenham, with Ray White auctioneer Kevin Chokshi forced to entertain offers below the $750,000-$810,000 asking price before competition picked up.

Spirited bidding carried the price past that range and up to $850,000 before the 10/12 Sydney St home was called on the market.

The bidding then continued to $855,000 and a sale.

On a 230sq m allotment, the villa-style unit featured two parking spaces and manicured gardens that helped it stand out to multiple buyers.

49 PHILIP ST, VERMONT

The sale of 49 Philip St, Vermont, turned into an emotional marathon — for the auctioneer.

A four-bedroom Vermont house has sold for $172,500 more than its reserve price in an emotional sale — for the auctioneer.

Docking Real Estate director Adam Docking introduced the home at 49 Philip St as the former residence of a since passed staff member at his family-owned real estate firm.

Mr Docking described it as a place where he had in part grown up, remembering pool parties in the back yard as he revelled in “the best years of my life”.

None of that seemed to have worked on the bidders when he was forced to open the sale with a $. 1.2m vendor bid.

But when a pair of buyers began to compete, things quickly rose to the home’s $1.28m reserve — set within the home’s $1.2m-$1.3m price guide.

Bids moved in $5000 increments, then in $1000 rises in what Mr Docking described as a “tennis match” before the margin fell to $500 lifts when the home reached $1.419m.

But with two parties refusing to give in, that figure kept rising. Slowly.

Marking the passage of time Mr Docking first acknowledged that the family selling the home’s 50-year connection with the property had increased to 51 years during the course of the auction. About 10 minutes later he announced that an infant in the crowd had begun walking and was off to school shortly.

Finally, about 40 minutes into the auction the agent with a clean-shaven head announced: “I had hair when we started”.

The bidding continued, still mostly in $500 increments, with one of the bidders invariably waiting for the second call before increasing their offer.

About 48 minutes after it started, the auction concluded at $1,452,500 — with the keys going to the bidder that had slowed things down with repeated $500 rises and waiting for the call to soften.

39 FRANCIS ST, CLAYTON

39 Francis St, Clayton, sold for $10,000 more than it’s price guide.

Ray White auctioneer Robert Cincotta had a few bidders on his hands as he put a four-bedroom Clayton house under the hammer this morning.

The 39 Francis St address had an $800,000-$880,000 asking price ahead of the hammer being raised, and the first bid hit the bottom of the range.

A $20,000 rise followed and the margin continued until a $5000 offer slowed things down at $865,000.

Soon after that, the bids fell to $2500. Then to $1000, with a tongue in cheek response from the auctioneer:

“I’ll take your one, you gave me the polite finger.”

The auction was paused at $886,000 while the agents sought instruction, and Mr Cincotta emerged saying they were “exceptionally close”.

He wasn’t joking and the next offer, a $2000 bid, had it on the market at $888,000.

But that was about the depth of the market, with one more $2000 raising the figure to $890,000 where the hammer came down.

PASSED IN WITHOUT A BID

Heavyside Real Estate’s Stevan Zervos made it clear to the bidders that his $1.6m-$1.7m listing at 33 Roslyn St, Burwood, was literally the only house being auctioned in the suburb today.

Records show a second house slated to go under the hammer sold early for $1.26m at 15 Collier Court.

While there was a decent crowd gathered to see what happened to the five-bedroom house, none responded to Mr Zervos’ statistic.

They also didn’t respond to repeated calls for a bid or Mr Zervos’ efforts to fire things up with a $1.6m vendor bid.

He took a pause to speak with the vendor and tried again. Then repeated that process when there still weren’t any offers made.

A few minutes later he made a final appeal, but with continued silence from the crowd he ultimately passed the home in on a $1.7m vendor bid.

A suburb over in Burwood East, Woodards auctioneer Cameron Way had his work cut out trying to get the auction for 54 Newhaven Rd started at 10am.

After a 10 minute preamble to warm the crowd up he switched to seeking bids, then to making a $1.15m vendor bid and finally to taking a break as he sought instruction from the vendor inside.

Despite the bid being at the bottom of the home’s $1.15m-$1.25m price guide, there were no offers after the pause and Mr Way passed the home in at $1.15m and asked those interested to head inside and speak with the agents.

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Originally published as Real Estate auction blog: Livestreams and rolling updates from the auction market