There is opportunity in the next two weeks

It's 6.00 pm Saturday and the James $m+ Clearance Rate on the on the 23 $m+ properties we attended today, was a strong 78 per cent.

HATS OFF to Torsten Kasper, Managing Director of Chisholm and Gamon who said their quoting policy now, was that their reserve was within their quoted range unless a last minute vendor hiccup. I suppose we could handle one vendor hiccup in 20 or so. Let us know if you as buyers are finding this to be the case. We congratulate Torsten on this transparency and we encourage buyers and sellers to support this Elwood and Port Melbourne company as long as this remains their stated policy and is proven to be the case.

Bayside Summary: Just another quiet week (not) in Brighton with 13 reported sales over $1m. Big increase in Bidderman at auction: 2.6

Boroondara Summary: 33 houses reported for sale today under $1.8m and 2 passed in. Balwyn was interesting today with 9 reported auctions and 4 pass-ins but drill down on the stats a bit more and you see anything under $2m sold and everything over $2m passed in. Drill down again and those pass-ins were all double storey new homes that have been so successful this year with the Chinese community. Chinese people (the catalyst for our improving market, so thank you) have (a) gone back for the summer break and (b) are being affected by the dollar and nothing states this so succinctly as the above observation.

Stonnington Summary: Strong day, seven out of seven auctions we attended sold.

Buying a Home Before Christmas

This 2009 run into Christmas is seeing an above average amount of activity and in the estate agency business activity breeds even more activity.

Everybody in late 2009 is coming out of the financial closet and admitting things aren't actually as bad as they thought they would be. We are seeing buyers and sellers taking what is now in their mind acceptable risks - having two homes (buy first) or no homes (sell first) in their move from one home to another. The market is very healthy - good turnover - good prices and good Bidderman.

A focus for our clients at the moment is off market - I personally have looked at more off market homes this last fortnight than in the last two months. There are a number of February sellers who have committed to agents and those agents are testing to see if a buyer may well pop up before Xmas.

So how do you buy in the next 2-3 weeks, and more importantly how do you buy well.

Firstly you need to see the home and that maybe slightly harder than normal as many agents still have a lot of homes currently on the market to service - next week December 12th is Jellis Craig's biggest auction day - ever - not biggest December auction day - not biggest this year - biggest day ever.

If you can see a "quietly listed"  home and you like it, then in this market the tricky pre Christmas questions are

1. Is it really for sale now or


2. Is the agent trying to secure the listing or


3. Is the owner just curious or


4. Is it really for sale right now

So a couple of simple questions to the agent

1. Mr Agent do you have a signed authority to sell this property?


2. Mr Agent does the vendor wish to sell before Xmas?


3. Do you have contracts and Section 32's ready?


4. Do you have a specific asking price?

The answers you get will determine the next step and even if some of the answers are no they still may mean yes and vice-versa.

The tricky bit occurs if and when you assess that a sale may be possible and you want to buy it.

Agent: Yes Mr or Mrs Buyer the home is for sale now

You the Buyer: How much is pretty well your next question - you can ask it smart or ask it dumb but it is the next question.

The replies often become wishy washy in almost all circumstances and fair enough to some extent -

• the agent doesn't always know for sure what it will take and it is early days


• the agent is also working for the vendor and is probably marking time to see what you may offer after some more questioning. Christmas time is a time of emotion and agents (both buying and selling) use emotion to maximize their clients position.

So maybe you will hear this: Well Mrs Buyer we told the seller $2,000,000; the seller/vendor wants $2,500,000 - I think; although the husband is not as fixed on that figure and we have some buyer interest at $1.9m.

Your (buyer) response to your spouse is..................hey Darls I'll do the Christmas shopping with the kids at Chadstone can you come here and talk to this nice selling agent.

This is pre offer stage and you really do need to think about some expert help (if you are unsure)  - before you actually commit to a price or an offer  - even a low one.

Why - well a low price may get you offside very quickly and you may well be dismissed; when a sensible offer would have bought it.

I can always increase my offer you say - well sometimes no - not if you are dismissed or sometimes yes you can increase; but if it is a big jump the vendor and agent maybe waiting for another big jump from you because of your huge leap after your first offer - even if your second offer, if originally made, would have bought it.

It is truly a powerful dynamic the first and often last offer - where do you pitch it and how do you present it.

That doesn't mean well pitched sensible lower offers don't work at this time of the year - they do - perhaps not as well as last year because seller fear is not as rampant as 2008 but nonetheless they do sometimes work. Some sellers are happy to just move on.

A well placed, well timed and well presented offer can work

The question is when, how and how much?

We at James are happy to talk to you in depth as each set of circumstances are different.

Of course you can save a buyer agent fee and a lot of stress (right now - the stress will come post purchase time) by offering $2.8m on a $2.3m home - try it and watch Santa get killed in the rush - but you do save the buyer agent fee.

Finally on this matter it's not all about money at Christmas - its about emotion. Way too many homes - and bad ones at that  - are bought at Christmas time only to find that in the cool light of a March settlement a big mistake was made - you just don't like it - you should have investigated the floor plan more, the termites, the caveat and the plumbing - not to mention you just don't like the area.

Happy Wife Happy Life yes!  but be careful at Xmas - you wouldn't want to get a seven iron through your car window if you just went and did something without thinking.

Special Conditions are leaving buyers cold

Sellers this is a truth - you may be losing buyers because of the solicitor or conveyancer you hire. That's right you are spending $600 to $2000 on contracts that maybe stopping buyers who have 10% deposit, are decent people and like your home.

We were down to a few minutes before an auction last week and refused to bid before the sellers finally agreed to some sensible special condition changes. Sure a conveyancer works for the seller but if it stops a buyer from having a go is that really protecting the vendor.

In the last fortnight we have had 3 separate legal firms refuse to allow our clients to buy until certain special condition clauses have been removed - 3 non starts unless things changed and they did - so my question is why put them in if you are prepared to pull them out. Answer: Because many buyers don't ask to have them removed.

This has been going on for years but it is getting worse. Please we are not saying that penalties for defaulters are not an issue, but this article is not about any default clauses. Its about unfair special condition clauses including:

• 1) Removing general conditions from standard Law Institute contract - the few that protect buyers


• 2) Telling buyers they and only they are responsible for the home at time of signing - even when they don't have access - instead of at settlement when they do.


• 3) Telling buyers they are responsible for things the vendor did prior to the auction. Hello!!!


• 4) Telling buyers they are not allowed to ask questions or dispute title even if title is wrong

You need to challenge these things if you are a buyer - you can't stick your head in the sand - sh...t happens in this business if you do. In three of the past 20 contracts we've ultimately bought we have found issues re the size of the land - one smaller than claimed, one larger than claimed on the title but it was a laneway that hadn't been put on title. One was an agent's measurement and advertising error. Remember you are buying a title, a piece of paper and although we always measure up (with our measuring wheel) if you've given away rights in the special conditions and you find a problem, recourse is more difficult if not impossible. You as buyers should not agree to these unfair special conditions.

And on top of this, at Christmas time some agents are not getting contracts till a day or so before an auction making a buyer's legal due diligence prior to auction very difficult.

Who cares the sellers may cry. No problems but if you are reducing your bidders you should care.

Lawyers believe they are protecting sellers and they need to. And yes we work for the buyers, but Mr and Mrs Seller we're just pointing out buyers maybe walking. If I had to choose last minute between two identical investment buys - one with a buyer unfriendly contract and one with a normal Law Institute contract which still favours the seller but in a balanced way then I know which I would choose.

Please, not trying to be controversial - pointing out facts - if you stop a real buyer from bidding I can't see how that is good for you the seller. I don't see how your conveyancer has helped or protected you by removing a legitimate buyer.

This is our last Market News for this year - except for our Bumper Christmas Special in two weeks - best auction - best auctioneer - best deal and so on. It is also the last in this format - you can see the new 2010 design that is having the finishing touches applied to it at www.jamesmarketnews.com.au

In finishing I would like to thank our brilliant reporters; Tom, Julia, Gina, Annette and David who with Jen help put our market news together each week. And I would like to especially single out our editor Melinda Brown who makes the wonky ideas we all have read like classic prose - well most times.

A big thank you to all the selling agents (yes I'm sucking up) and auctioneers and company directors who allow us to move freely around auctions and who ring in results and let us report as we see it without complaining; even when we say things they don't agree with or when we take the micky out of them. Many of the selling agents are far more open minded than some negative press gives them credit for.

It's a great job being a buyer or seller agent, you change peoples lives. 

Buy Well now or maybe have a rest at Christmas and come back stronger and smarter next year. Stay safe.

Mal

Bayside - Beaumaris, Brighton to Port Melbourne and a bit more

Brighton: 106 Carpenter St: Bang over in minutes with Trudy Biggin. 3 bidders sold for $930,000

Just another quiet week (not) in Brighton with 13 reported sales over $1m.

Big increase in Bidderman at auction: 2.6

Some follow up to previous weekend's passed in auctions - two sold privately during the week; the first at 49 William St, Brighton (Phillip Mellody Buxton), where they seemed to be thinking $3.5m, had a vendor bid of $2.95m last weekend and sold mid week for well north of $3m but not $3.5m. The second was 32 Cosham St, Brighton (David Wilson of JP Dixon) - we reported the auction a few weeks ago - only vendor bids - sold mid week for just under $3m.

Another hot Hocking Stuart Ferrars Place sale in Albert Park on the back of last weeks $4m+ one. 21 Ferrars - Michael Coen - 274 sqm land + townhouse was bought for $2.25m (quoted under $2m). This little section of the world - the crescents of Howe, Martin and Ferrars is rivaling St Vincents place and the Domain in South Yarra.

Black Rock - 4 out of 4 homes over a million reported sold at auction today as apposed to Brighton East 1 out 4. But look at the homes - in Brighton East the non sales were main roads or near main roads.

Brighton Land Value Update
4 Vaucluse (Carole Laird Hodges) - South facing rear - 553 sq metres sold before for $1,280,000 or $2300 per sq metre.
106 Carpenter (Trudy Biggin Biggin and Scott) - Backs onto railway line (almost) - 504 sq metres sold for $930,000 or $1845 sq metre today. 116 Carpenter, also backs onto railway sold for around the same (some minor value in the house)a few weeks ago.

Main road or railway line discount for land seems to be a minimum 15% and can be 25% against good blocks nearby.

What Didn't Sell?
13 Wellington (Bert Stewart Buxton) didn't run out the door. The home is tired and if you wanted to start again then at a $3,500,000 vendor bid that makes the asking price for land north of $4400 - the Diamond K as we call this precinct between the Brighton Beach and Church St is good but is it north of $4000 sqm - stay tuned.
13 Baxter St Elsternwick (Bill Stavrakis Biggin and Scott) - great little single fronter inside but outside - no car park. See our rating.
There were 4 apartments  (Black Rock, Southbank and Port Melbourne 2) in that tricky just over a million range and all passed in today. But to balance this there were 4 private sales during the week of apartments in this range.

James Auctions we attended today 

CAULFIELD SOUTH, 19 Flowers St - Passed in - no bidders (Biggin Scott)
It was a day for window shopping at the auction of this Caulfield South property, with auctioneer Bill Stavrakis failing to attract any bids from the crowd of around 70 people.  Mr Stavrakis opened proceedings with a vendor bid of $2m, and despite a persuasive speech on the value and quality of the property, could not get any bids from the crowd. The property was passed in on a second vendor bid of $2.1m.

BEAUMARIS, 4 Scarborough Grove - Bought - two bidders (Buxton)
Not a single car drove by during this auction, a detail auctioneer Mark Earle was quick to point out in his pitch - the peace and quiet only disrupted by the singing birds in the many trees. A genuine bid of $1.2m opened proceedings and was quickly countered by a second bidder. Rapid, confident bidding between the two parties followed and the house sold shortly after for $1.355m. An average crowd of around 40 people lined both sides of the street to catch the action.

BRIGHTON, 13 Wellington St - Passed in - one bidder (Buxton)
With a grand piano in the foyer and Pachelbel's Canon playing in the background, there was a feeling of grandeur at this auction. Buxton's Leigh Hallamore led the way and opened proceedings with two vendor bids of $3m and $3.25m. One genuine bidder jumped in but the property was passed in at $3.5m. Around 60 people lined the streets to watch the auction, an eclectic gathering of the young and the not so young.

MIDDLE PARK, 64 Nimmo St - Bought - seven bidders (Cayzer)
A big and noisy crowd of 120+ came to witness this auction, and many were there to bid as well, about 7 bidders getting involved. It began with a knocked back bid at $1.5m followed by a vendor bid at $2.4m to officially open. Auctioneer Michael Szulc and the Cayzer crew got spun in all directions picking out the bidders and seemed to be just as awe-struck as the crowd when bidding shot past the selling price at $2.8m and sold for $3.155m.  Crowd members walked off shaking their heads in disbelief of the selling price.

ELWOOD, 19 Beach Ave - Bought - two bidders (Chisholm & Gamon)
A large crowd of 90+ scatter around this windy scene just off Beach Road. Auctioneer Torsten Kasper keeps grounded in the breeze, opening with a vendor bid of $2m and rounds up two bidders to join in. The property is on the market at $2.2m and sells for $2.230m. Another strong result.

BRIGHTON, 106 Carpenter St - Bought - three bidders (Biggin & Scott)
The hammer came down with a thud within minutes at this auction! Auctioneer Marcus Peters led the way, taking an opening bid of $800,000 from the crowd of 50 onlookers. Two more bidders entered the fray and the property was quickly on the market at $880,000, selling minutes later for $930,000.

ELSTERNWICK, 13 Baxter St - Passed in - three bidders (Biggin & Scott)
Strong, fast bidding at this auction but despite interest from three parties, the property failed to sell. Auctioneer Bill Stavrakis accepted an opening bid of $900,000 from the crowd of around 50 people. Bidding was quick and soon reached $1.123m, but was passed in at this amount.

Happy Wife Happy Life

Hawthorn, Canterbury, Camberwell, Glen Iris, Kew, Hawthorn East

Camberwell: 44 Athelstan: Glen Coutinho bashing out another deal. 3 bidders, 31 bids. Bought $2.65m

33 houses reported for sale today under $1.8m and only 2 passed in. Bidderman 1.6

Balwyn was interesting today with 9 reported auctions and 4 pass-ins but drill down on the stats a bit more and you see anything under $2m sold and everything over $2m passed in. Drill down again and those pass-ins were all double storey new homes that have been so successful this year with the Chinese community. Chinese people (the catalyst for our improving market, so thank you) have (a) gone back for the summer break and (b) are being affected by the dollar and nothing states this so succinctly as the above observation.

The power of the Canterbury Golden Mile never ceases to amaze and the sale of 15-17 Mangarra Road (Nick Elmore and Tom Aylward Jellis Craig) in my mind evidences this. It was not a great floor plan and opposite a school and it still pushes past $3m. Canterbury and $3m for a decent sized block are now becoming as common as burger and fries (it must be dinner time).

Most things sold in Kew today (5 over a million) except for the biggest pass-in at 18 Walmer St (Peter Batrouney- Jellis Craig) and is now for private sale at $4.35m.

Glen Iris/Ashburton: Another incredible day for the area for $1m+ sales with 7 out of 8 selling under the hammer or soon after; only 9 White St Glen Iris (Karl Fitch of Noel Jones) remaining to be mopped up at an asking price of $1.82m

Land Value Check: 22 Wattle Road Hawthorn - narrow road - south facing block - wedged between two rows of townhouses with a Victorian on it that needs the works sold for an estimated $1500 a sq metre. If the block has enough issues even in this central area the market will discount severely.

House Value Check: 29-31 Rowell Avenue Camberwell (Maurice Pitard and Jeff Gole). It sold yesterday for $3,755,000 - see report below for almost exactly as predicted. At 1700 sq metres in size and land being in the early $2000 per sq metre for Rowell Avenue/ Sunnyside estate area - after the pool and tennis court is accounted for that leaves a house value of ........ almost free. Interesting. Not a comment on price - it was the right money - just a comment on the house value.

James attended auctions below

HAWTHORN, 2 Summerlea Grove - Bought - three bidders (Jellis Craig)
Auctioneer Richard Earle managed a robust auction with three bidders from a very small crowd of around 30 people. Mr Earle accepted an opening bid of $1.8m and the property was on the market at $2.4m. The property subsequently sold for $2.5m.

HAWTHORN, 7 Woodburn Rd - Bought - three bidders (Jellis Craig)
Alastair Craig of Jellis Craig conducted this auction in front of a crowd of about 30 in the backyard of this well renovated Californian bungalow. Three bidders participated and after starting slowly at $1.2million bids increased by $5000 and $10,000 to quickly reach the reserve of $1.38m. Four more bids took it to its bought price $1.405m.

BALWYN, 66 Gordon St - Bought (Hocking Stuart)
This property sold before auction for an undisclosed price.

CAMBERWELL, 29-31 Rowell Ave - Bought - three bidders (Jellis Craig)
A large crowd of locals attended the auction of this unique property which included two houses, a swimming pool and tennis court. After an exuberant speech from Steven Abbott, and an opening bid of $2.9m, the bids came thick and fast. There were three bidders overall, with two battling it out to reach a sale price of $3.755m.

CANTERBURY,  15-17 Mangarra Rd - Passed in - one bidder (Jellis Craig)
Alastair Craig gave a polished delivery in praise of this Edwardian home on a double block, but the crowd of around 55 people was restrained and there were no bids forthcoming. The property passed in after two vendor bids and one genuine bid of $2.9m.

CAMBERWELL , 44 Athelstan Rd - Bought - three bidders (Hocking Stuart)
No matter what country you are from, when it comes to spending big money MUM always has the last word. In this auction about 100 people witnessed 3 participants making 31 bids until it came down to the last competing bid. Mum was called by the under-bidder on an international phone call. Glen Coutinho  of Hocking Stuart gave the bidder plenty of time to discuss all the issues  - but MUM said NO.
The property was bought for $2.605m after being on the market at $2.6m

CAMBERWELL, 56 Bowen St - Passed in - no bidders (Jellis Craig)
A rather large crowd of around 80 people gathered in leafy Bowen Street, Camberwell to witness the auction at number 56. Maurice Di Marzio of Jellis Craig kick-started the auction with a vendor bid of $2.15m. This failed to gain traction as bidders at that price were clearly not in attendance. Two subsequent vendor bids were placed before the property was formally passed in at $2.2m.       

KEW, 10 Walsh St - Bought (Jellis Craig)
This property sold before auction for an undisclosed price.

Design Smart

Toorak, South Yarra, Malvern, Glen Iris, Malvern East and Armadale

South Yarra: 117 Millswyn: Gerald, Gowan and Andrew rounding up 2 bidders. Bought for $2.885m

Strong day, seven out of seven auctions we attended sold. Bidderman 2.3

After Kay and Burton's incredible run of big sales, it's the RT Edgar story today.

10 Avalon Armadale has finally sold for just over $4m which is well short of where it was first offered at. Great location, but a very difficult block for light and slope (living areas) and it has a specific Heritage Overlay. Well done to Jeremy Fox of RT Edgar.

Another RT Edgar sale was 2 Wilks Avenue Malvern for $2.65m - great little nook in Malvern - needs a $1m reno but it is a home of great feeling. A smart thinker should make this into a beautiful home.

And finally Jeremy and the boys had the biggest auction sale at $6,190,000 for 177 Kooyong Road Toorak.

Who said a company that quotes as mysteriously as Tiger can't get the job done.

34 Belgrave Road Malvern East (Jellis Craig) over a million - wow busy road, tricky floor plan and not the most exciting part of Malvern East - any doubt the market is hot on the fringes has been expunged by that price. See report below.

117 Millsywn (Andrew Baines - Kay and Burton) with a less than ideal 4 year option shows that the Domain precinct in South Yarra is as strong as ever. See report below.

For the investors - we have bought a number of single frontiers recently to reflect where we think the demographics are going and the sale of 40 Repton Road Malvern East - John Morrisby Marshall White at just over a million on Saturday shows around a 70% increase in 5 years for a similar home bought late 2005.

James Auctions we attended today

MALVERN, 12 Gordon Grove - Bought - two bidders (Marshall White)
In front of 80 people, with Andrew Hayne as auctioneer, this auction started with a strong bid of $1.5m. After referring to the vendor, another bidder joined in tit for tat and the property sold shortly after for a figure in the $1.5m's. A good result for the vendor and the purchaser alike.

GLEN IRIS, 5 Irymple Ave - Bought - one bidder (Bennison Mackinnon)
This property on a cosy corner attracts a crowd of 50+ on this overcast morning. Auctioneer Iain Carmichael is tested to the limit, trying every trick in the bag to generate some participation after two drawn out vendor bids at $1.8m followed by $1.84m. Right at the last moment a bidder pipes up at $1.85m. Carmichael sighs in relief before passing in at this price. Sells almost immediately post auction to the sole bidder for $1.91m.

MALVERN EAST, 34 Belgrave Rd - Bought - four bidders (Jellis Craig)
The auction of this property attracted several buyers eager to get a foot in this sought after area. Auctioneer Steven Abbott opened proceedings with a vendor bid of $870,000 which was quickly followed by a genuine bid of $880,000. After the property was declared on the market at $995,000, spectators saw competitive bidding between four bidders and the house sold under the hammer for $1.011m.

GLEN IRIS, 1646 Malvern Rd - Bought - three bidders (Bennison Mackinnon)
The noisy traffic, passing cars and strong wind competed with but could not out do the relentless back and forward bidding between two particularly keen bidders, amongst the three bidders involved. This auction led by Iain Carmichael began with a crowd bid at $1.5m. After a vendor bid at $1.55m things took off, the property was on the market at $1.65m and climbed steadily to sell for $1.772m. Strong bidding, vibe and result. A crowd of 40 watched on.

RICHMOND, 15 Boland St - Bought - four bidders (Jellis Craig)
A strong opening and bidding from four bidders, saw this property quickly go on the market at $850,000. After a quick referral by Clayton Smith, the bidding continued and the property sold for $892,000.

KOOYONG, 711 Toorak Rd - Auction Postponed (Bennison Mackinnon)

SOUTH YARRA, 117 Millswyn St - Bought - two bidders (Kay & Burton)
About 50 people attended this auction of a Dentist’s consulting rooms. Even with an option of the dentist increasing his lease by 4 years from June 2010 interest was strong with 2 bidders quickly taking the price from the initial vendor’s bid of $2.7 million to $2.8 million when a break was taken. Gerald Delany then announced that there was no reserve price and the same two bidders took it to the bought price of $2.885m.

TOORAK, 765 Orrong Rd - Bought (Kay & Burton)
This property sold before auction for an undisclosed price.

Make Good Decisions