First home buyer makes competing offers, sign of irrational real estate market

A first-time home buyer has been forced to bid $20,000 against himself for a one-bedroom apartment in a trendy Sydney suburb.

The New York-style loft at 10/15-27 Hutchinson Street in Surry Hills had a price guide between $700,000 and $750,000 – with four registered bidders attending the auction on Saturday.

Just three bids saw bidding stop at $750,000 – well below the $800,000 reserve.

The young man then raised his bid by $20,000 to $770,000 after a conversation with the agent, who agreed to the sale if he raised his bid.

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A first-time home buyer has bid $20,000 against himself for a loft in Sydney’s Surry Hills

The New York-style loft at 10/15 27 Hutchinson Street in Surry Hills had a price guide between $700,000 and $750,000

The New York-style loft at 10/15 27 Hutchinson Street in Surry Hills had a price guide between $700,000 and $750,000

The property has 4.3 meter high ceilings to accommodate the mezzanine bedroom, with exposed raw materials giving the apartment a unique look.

It has a terrace for entertaining and direct access to a shared garden overlooking the apartment.

This is one of many stunning homes inside the De La Vega E-Space warehouse conversion in the heart of Surry Hills.

Ray White’s Ercan Ersan brokered a middle ground for buyer and seller to close the deal.

The sole property agent has negotiated a middle ground for the seller and the buyer

The sole property agent has negotiated a middle ground for the seller and the buyer

The one bedroom loft is one of many gorgeous homes inside the converted warehouse

The one bedroom loft is one of many gorgeous homes inside the converted warehouse

“I let him know the reserve was $800,000 and he could pay up to $770,000 and he agreed to that,” Mr. Ersan told Domain.

“If someone isn’t realistic or ready to meet the market, they probably won’t sell.”

“The bed, a bathroom, no parking is the hardest stock to sell. It is worn by first time home buyers and investors. These are the two most sensitive buyer profiles right now due to loans and interest rates.

The apartment has an entertainment terrace and direct access to a shared garden

The apartment has an entertainment terrace and direct access to a shared garden

Another auction in nearby Darlinghurst saw a similar situation, with a couple bidding against themselves and upping their bid from $2.605 million to $2.7 million only to meet sellers halfway through.

The owners of the three-bedroom apartment on Liverpool Street have reduced the $2.8million reserve to complete the sale to a mid-west couple who were looking to downsize.

“The sellers were realistic, he bought it last year for $2.4 million and he wanted to sell it today, so he hit the market,” said agent Guido Scatizzi of BresicWhitney Darlinghurst.

“In fact, we did well, in a declining market. We got $300,000 more than he sold last year.

Surry Hills, a sought-after suburb in Sydney’s central east, saw its median unit price drop 1% in the past financial year, to $950,000.

Darlinghurst’s median unit price remains around $1.1 million.

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