Sydney real estate: First home buyers are bidding against themselves that the real estate market is going crazy

The first homebuyer is forced to bid against himself and add another $20,000 to the mortgage in the latest sign the housing market is going nuts

  • First home buyer bid against himself to secure a one bedroom loft in Surry Hills
  • The agent negotiated a middle ground for sellers and buyers after low bids on Saturday
  • Young man bid $20,000 against himself to secure property for $770,000
  • A similar situation occurred for a three bedroom flat in Darlinghurst

A first-time homebuyer was forced to bid $20,000 against himself to secure 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 guide price of between $700,000 and $750,000 – with four registered bidders attending Saturday’s auction.

Just three bids resulted in the bids stopping at $750,000 – well below the $800,000 reserve.

The young man then increased his bid by $20,000 to $770,000 after speaking to the agent, who agreed to the sale if he increased his bid.

A first-time homebuyer bid $20,000 against himself to secure a loft in Sydney's Surry Hills

A first-time homebuyer bid $20,000 against himself to secure a loft in Sydney’s Surry Hills

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

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

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

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

It is one of several stunning homes in the De La Vega E-Space converted warehouse in the heart of Surry Hills.

Ray White’s Ercan Ersan negotiated a middle ground for buyers and sellers to close the deal.

The broker of the unique property negotiated a middle ground for sellers and buyers

The broker of the unique property negotiated a middle ground for sellers and buyers

The one bedroom loft is one of several stunning homes in the converted warehouse

The one bedroom loft is one of several stunning homes in the converted warehouse

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

“If someone isn’t realistic or willing to serve the market, they probably won’t sell.

“A bed, a bath, no parking is the hardest stock to sell. It’s being driven by first-time homebuyers and investors. They are the two most sensitive buyer profiles right now because of lending and interest rates.’

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

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

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

The owners of the three-bedroom Liverpool Street apartment lowered the $2.8 million reserve to complete the sale to an Inner West couple looking to downsize.

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

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

Surry Hills, a desirable inner-east suburb of Sydney, saw its average unit price fall 1 percent to $950,000 last fiscal year.

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

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Emma Colton

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