Homebuyers caught sitting on their hands after making a low-ball offer on a renovated character home in Geelong West learned the hard way that it’s not all a buyer’s market.
But it was good news for a young Melbourne couple, who swooped on the Edwardian residence at 25 Waratah St, near Pakington St.
Buxton Newtown agent Tom Butters handled the $1.19m deal for the three-bedroom house.
“It’s a beautiful house in Waratah St, a really nice three-bedroom, two-bathroom home. Beautifully done,” he said.
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The young couple from Melbourne was looking to relocate down to Geelong, which Mr Butters said is a rising trend as buying conditions tighten in Melbourne on the back of three interest rate rises.
“We’re meeting a lot of people from Melbourne with one kid and maybe a second on the way, thinking that Geelong’s a great place.”
Rising interest rates was driving more buyers to once again look further afield considering both budget and lifestyle, he said.
“I think interest rates have a big play on it – they’re priced out of the Melbourne market.
It’s just for those working people, it’s a much more expensive market, and they can spend xyz… and have a better budget, get a better home, and get a better lifestyle. So they’re choosing Geelong as an option.”
Mr Butters said Waratah St was probably among the top two streets in the suburb.
“It’s definitely the best end – it’s wide, it’s tree lined and it’s just on the doorstep of Pako, so it’s pretty sought after”
Mr Butters said the buyers had to compete against another Melbourne buyer who had already sold their inner-Melbourne home.
He said they underbidders had made a low offer and were sitting on their hands until they realised they had to compete, and they lost.
It’s a warning to buyers considering making a low offer on a property.
“They’re just reading the headlines, going, “oh, it’s buyers’ market, so we can do what we want.
“You know we are pricing homes on the current market. We’re basing it on market conditions on what’s happening a month ago. We’re not doing it based on Covid prices or anything like that,” he said.
The median house price in Geelong West is 5.3 per cent higher than 12 months ago, PropTrack data shows.
Mr Butters said people making low-ball offers need to consider if the shoe was on the other foot, would they be offended?
The period weatherboard home combines timeless character with modern updates, such as high ceilings, timber floors and new carpets in the bedrooms.
The kitchen features an electric oven and gas cooktop and overlooks the backyard and covered deck.
Originally published as Agent warns bargain hunters as young buyers swoop on Geelong West home