Hawthorn Volcano @ $8m
James Buy Sell Top End Marketnews. Posted Saturday. Inbox Monday
What JAMES BUY SELL AUCTION advice looks like
Today Gina, Mal and the team at James Buy Sell bought for clients a very special home at auction, 25 Hawthorn Grove Hawthorn. Price Quote was $6,800,000 to $7,300,000. On Market at $7,500,000. Sold $8,020,000. 3/4 Bidders. Crowd over 100.
Normally we say nothing - privacy - but somebody else splashed it all over the papers. We do not speak to the press about clients or homes we are buying - their presence and story is selling agent / public auction related.
"It's easy to work for people who genuinely want good advice." Mal, Gina and Sim
• You can spend half your possible budget and be happy - just find an advocate who thinks left field (Gina)
• AAA never goes out of fashion - just make sure what AAA really is (Provenance)
• Not all homes needing work are difficult renovations. Do you want to spend $8m and get a $5m reno or $8m and a $2m renovation
• You are allowed to have fun and feel good working with your buyer agent and you are allowed as an agent to enjoy their company.
• Turn up to a AAA auction with hope as your strategy and you will fail almost every time. 90% of good auction work is done before
What JAMES BUY SELL Auction Buying looks like
Key Players: Agent: Scott Patterson, James Buy Sell: Gina Kantzas, Clients: Nicole and David, Mal and Vendor Agent:Tonya Davidson. Thank you to sellers for their ethical sale.
The home itself has had a few refurbishments and basically doubled in value every decade having sold in 2014 for $3.9m, in 2005 for $1.8m and in 1994 for 0.8m. It was built in 1896. Land 1100 sqm. North rear, rear access, rear townhouse as well. 4 bedrooms. Light reno to improve garden, open up rear living and mitigate flats presence would make a significant difference and add value.
25 Hawthorn Grove - 3/4 Bidders - Crowd over a 100
video: phoebe
With the next 100 Auction Test on the state of the Spring market due to begin Aug 26, we thought you may like to go behind the scenes of James Buy Sell and see what is happening at the Top End right now.
Only to make it real we showed you what we thought and how we communicated to our clients prior to the result - no hindsight and twisting the story post auction. We are grateful to our clients, who were happy to have a picture post auction to confirm this is a 100% true story. If our clients asked for complete privacy we would not have done this. But on this one - lets be proud of a great buy, a great relationship and some good fun together - its not all serious s.... Life is good. Thank you
Our Advice the Day Before
Our Advice the Morning Of
What JAMES BUY SELL Due Diligence looks like
The rating and notes and values reflected a great home, but as you can see we were completely open with its issues. It's absolute balderdash that buyers cannot handle the truth. To this day we still do not know why agents tell BS and lose all credibility in a relationship and therefore lose all credibility in a negotiation.
Client Rating Two Weeks Before
There are numerous appealing aspects to this home that potential buyers will consider, but most may initially be discouraged by a certain obvious disappointment. However, this drawback is precisely what could make this home an advantageous purchase.
Position
The home’s location is undoubtedly outstanding, both in terms of the street itself and its overall presence. Hawthorn Grove would undoubtedly feature in the Top 10 discussions of every Melburnian and the Top 3 discussions of every Hawthorn resident. It has held its position as a distinguished boulevard for over a century. While technically not in Grace Park for some, it is widely regarded as the best in Grace Park by others.
The only drawback concerning the location is the presence of apartments to the northwest, however, these apartments are manageable (with planting along the west & north fences) and can be viewed as a positive aspect, as they contribute to the home’s affordability for those with renovation skills and an eye for resale potential. More details on this will be discussed later.
The price of the home currently feels fair. It may not generate interest at $7.5 million, but under slightly different market circumstances, it could attract competition over $9 million.
Property
However, it is the property itself that deserves attention, as it holds great potential. The home is single-level and situated on a spacious plot of land, with the added benefit of rear access and a small townhouse. The facade of the home is truly impressive and captures attention.
Consider the remarkable features of the property and focus on its positives. The home possesses the qualities necessary to become a grand residence. Rather than being a grand dame without a skirt, it can be transformed into an elegantly dressed and classy lady. Embrace the concept of “less is more” and envision the home’s greatness. Nevertheless, we shouldn’t ignore the obvious issue, or rather, the elephant located at the rear.
The following are not mere improvements or enhancements but fixes to neutralize, mitigate, and enhance 25 Hawthorn Grove:
Perhaps in the future, one could consider purchasing the adjoining property. However, there is no immediate need to do so, as the current footprint can work effectively with some minor adjustments that completely transform its overall appearance.
One major issue is that the kitchen faces the wrong direction. It should be reoriented to face east or positioned it to the east end of the current space with a mudroom for direct access from the east garden car parking, This would align the home and create a seamless flow from the generous hallway into casual living spaces and onto a beautiful garden. This could also allow for a kids’ bathroom and powder room in the vicinity of the current pantry & WIR area and the current bathroom to become the ensuite for the Main bedroom.
Additionally, the positioning of the pool is unsatisfactory, as it seems like an afterthought and draws attention to the rear units. Consider relocating the pool (if you want one) to the main garden area and transforming the current pool space into a herb garden or outdoor sanctuary. Even with Winter Sun plantings can block an undesired rear view without restricting light.
To further enhance the property, I would suggest creating a connection between the rear building and the gardens at the front. This connection could exude a rustic country feel and garden atmosphere – allowing easier car movement to a point halfway down the block – via initially some “carport” like garden structure probably not requiring council approval – but not 100% sure.
Additionally, the “brick mass” at the rear would benefit from a rustic vine treatment. The rear townhouse is an exceptional option that many families searching for a multigenerational living concept would appreciate—it’s a winner. Embrace this feature and forego the idea of underground garages, as they would likely be a significant and unnecessary project.
After implementing these minor changes, the property can be customized to suit individual tastes. For families with two older teenagers, one could occupy the front area while the other resides in the rear, repurposing bedrooms as sitting rooms. On the other hand, if you have younger children, the current setup is already suitable for fostering family closeness.
We genuinely love this home, would keep it single story, focus on some architectural input for rear living spaces and if you’re fortunate enough to buy then enjoy for possibly decades and it’s hard to know where “noticeably better” exists in Melbourne.
The above is Property and Position – what about the 3rd P – Price.
When something is AAA it’s always harder to pin a price down – especially as you go up the food chain $ wise. The only rider on 25 is the unknown of the units behind – will that place a ceiling on things? My best guess the more I look at this is; no or not really. I think the best way to consider 25 is to think of it as some buyers do on south facing rear Grace Park homes – some don’t like them and won’t bid, but those that do, still go hard to get what they want.
I think you need to test and be prepared to consider a possibility it could go below $8m – if interest is limited AND also think about the strength of the Grace Park/Hawthorn Grove market, it’s ready to move-in and this home has bonuses not just an issue over most – eg rear building, on the crest of Hawthorn Grove (the best says past sales), north and the façade – that is a powerful façade, so it could go circle $9m.
What past sales says it’s under $8m.
– 62 Kinkora -south facing rear, needed a major reno, quoted in the $5m, 4 bidders, we were an underbidder
– 51 Hawthorn – better finishes – smaller land size – $6,400,000 – single bidders – we were an underbidder, two deals back.
What past sales says over $9m is a possibility if the likely competition occurs:
– 34 Hawthorn Grove -same land size, weaker side of street, better finishes – $11.725,000.
– 55 Hawthorn Grove – less land size, 6 years ago and different type – $8,565,000 we were an underbidder.
– 44 Hawthorn Grove – same land size, weaker side of street, weaker finishes – $8,015,000 we were an underbidder and quote was in the $6m’s – same agent, 4 bidders.
– 41 Hawthorn Grove – smaller land size and we bought for circa $8,000,000.
There is multiple evidence to say – let’s try and get it under $8m, strong competition says you may be over $9m and at $10m maybe we could do better (maybe we can’t) – we just don’t know when that would though.
Initial "left field" note to clients on suggesting a visit
Everybody loves a good story and Gina and I are in “sales”
The stories we are submitting are evidence of what we say and of our bona-fides on this and other Grace Park homes.
But more importantly
1) Is this an area for you to be happy in whilst you are away – abso..bloody….lutley. This is so much better re isolation than the River, Scotch Hill or Sackville.
2) Is this a home that can hold its value – yes – as a general rule growth in key Heritage estates is not a natural function of the market – it is often less than market – growth is about price in and price out – and differs from non Heritage Asian Aussie supported areas – BUT with a good reno -costing not too much – the home will re sell even in a poor market. So growth is less than stellar but holding value and resale in any market is good.
3) You can work your family and your business here – classy to bring a fellow MD, good separate office and blended families can have space.
The stories are good – but Gina and I are good at telling stories 😀 – this is about what’s right for you and then getting it.
This is it and this is our best advice to you.
Mal and Gina
Client Values Two Weeks Before
July we felt was 10% quieter than the June market. However on AAA homes the band width needs to be wider on value advice as there are competing bidders with far greater capacity to adjust when push comes to shove. This was not a difficult home to value.
JAMES BUY SELL Heritage & Provenance looks like
When looking at classics with issues, we really believe in pre purchase architectural and building advice, independent of us. Yes we believe in good architects - we love a number of them. We just have no time for miserable and unethical architects (who love awards more than budgets and client needs) and we don't recommend them. See our story on Renovation Fairytales two weeks ago.
Yes we totally believe in Heritage - look at Provenance research below. What we will never support are architects and councils robbing buyers of 20% of their home wealth, when they slap a random Heritage Order on a home under the muse (sorry ruse) its some pre war, post modernist, special East Latvian goat herders concept - spare us all.
Great homes in great precincts with wonderful provenance are to be admired and supported. Hawthorn Grove is such a precinct and 25 such a home.
Those that understand the value of provenance; want to know the history of a Namatjira or a Renoir; the restorers’ qualifications on an original Eames or Benz and the likely expected future condition of a Grange or a Rothschild – before they purchase.
What is provenance?
Provenance is a word of French origin (of course) and if you goggle it, you’ll read – it’s a record of ownership of a work of art, used as a guide to authenticity or quality.
Why is provenance important in a home?
To some it’s not; however, for many provenance
- is a form of comfort in getting what you think you are paying for,
- a predictor of future demand and in turn future price
- a confirmation that others who seem influential/classy agree with you
and that’s an emotion combination of trust, that we have seen premiums paid on. (example: Organic v Supermarket brand)
In a busy world, has provenance gone out of fashion?
No, the opposite, brand is provenance, pest and internet valuation reports are provenance, A Sec 32 is provenance.
A better question. Has real provenance (full and deep research) been replaced by superficial provenance (marketing)? Mmmmm, yep! What we are talking about here, in relation to 25 Hawthorn Grove, goes a lot deeper than the agents logo, the flashy brochure, the made up SOI.
In the World’s, Australia’s and Melbourne’s top 1% of anything, provenance holds great emotional value and if managed well great price value. A reasonable level of time, understanding and detective work is required for what we call real provenance.
Welcome to 25 Hawthorn Grove, a home James Buy Sell recommends.
About the importance of Provenance and the 3P’s of 25 Hawthorn Grove
When you are looking at any home – there is price, property and position – (3Ps). Position is pre-eminent in provenance.
POSITIONAL Provenance
The world has how many truly great cities? Melbourne is one!
Melbourne has a handful of influential suburbs: Albert/Middle Park, Carlton/Fitzroy, Essendon, Brighton, Toorak and Hawthorn. They are the suburbs that a century of history shows are the centres of influence. For a while Canterbury/Balwyn has added itself to this list.
Within suburbs – there are precincts of influence. Golden Mile, Tara, Sackville and in Hawthorn there are 3 key precincts. St James Park, Scotch Hill and Grace Park.
Within the precincts there are important streets. Kooyongkoot, Shakespeare, Coppin and within Grace Park there are Hawthorn Grove, Mary Street and Chrystobel Crescent.
Within streets there are good and bad numbers, sides and ends – noise, light, sit proud.
Positional Provenance – City / Suburb / Precinct / Road / Numbers
Chrystobel Provenance – Melbourne/ Hawthorn / Grace Park / Chrystobel / 45
Hawthorn Grove has perfect positional provenance.
A shortened version of Hawthorn History from council website
Grace Park and Hawthorn Grove Precincts
Technically Hawthorn Grove is not in the Grace Park estate – so what does this mean…….nothing as Hawthorn Grove is regarded as its own precinct and is more expensive than Grace Park and is regarded as being in the Grace Park precinct
Why has the Hawthorn Grove got its anomalies – because until 1959 – it had a railway station on it and in the 1970s there were a lot of boarding houses etc as big old buildings were not in favour – your home was once multiple accommodation hence the flats behind etc
PROPERTY Provenance
Builder, Architect, Renovations.
25 Hawthorn Grove has impeccable building influences and class provenance.
http://images.heritage.vic.gov.au/attachment/40755
Influence: noun
the capacity to have an effect on the character, development, or behaviour of someone or something, or the effect itself.
Class: noun
a set or category of things having some property or attribute in common and differentiated from others by kind, type, or quality.
Class: verb
assign or regard as belonging to a particular category
Class: adjective
showing stylish excellence.
How do we know which architects and builders are influential, are class? What are they worth in addition to the land, bricks and mortar?
) Architectural Provenance: (Gina introduced a suitable architect BEFORE purchase)
Dear David and Nicole,
It was my pleasure to speak with you both this morning and thank you again for inviting me to assist you!
25 Hawthorn Grove is a really special house, but could benefit from some additional love and attention to turn it into something truly incredible!
I attach the council research, functional brief and a potential floor plan that we sketched together during our meeting today. Please excuse the “drawing by mouse” style of the sketch, but I hope it captures many of the ideas that we were passing back and forth!
I wish you the best of luck for the weekend and I would of course be happy to answer any more questions before the auction should that prove to be helpful to you.
Regards,
Michael Chadwick
Architect Director
B.A [Hons] M.Phil Architecture [Cambridge]
) Builder Provenance: Simone our CEO organised a full Pest and Building Report and followed up all certificates – excellent. As well as organised full LEGAL check on contracts.
In new builds – its critical to understand the builder’s reputation and see other works 10 years and older – that is builder provenance. In older builds and renovations, the skills of the builder pass or fail on the time test, more so than reputations.
) Renovation Provenance: (Gina introduced a suitable architect BEFORE purchase)
So many renovations are measured by $ spent, big expansive rooms and finishes, magazine awards. But many renovations and newbuilds are merely one man’s concrete ego waiting for the next woman’s bulldozer.
Only a few architects understand the organism of a classic older building. Most want to put their own stamp on somebody else’s masterpiece and in doing so damage the history, damage the provenance, damage the emotion. Many older homes are just a façade of history with a few plastic emotionless boxes tacked in/on behind – like the staff canteen behind a western movie set.
Most but not all – nobody is saying all old is good, either.
PRICE Provenance
Influence, class and emotion are all intertwined in a home’s provenance and all affect price – not just now, but in the future.
Having said that, how do we avoid the “any price is ok syndrome?”
Price provenance is how at say $10million and above – traditional ways of specific comparison valuation are rarely possible. Price provenance is about $ opinions that actually mean something.
Great Provenance = Branding = Emotion = Price
All homes, at all price levels have provenance – a question for buyers and sellers is, do you know and understand the value of that provenance?
What Is Provenance?
WHEN IT'S ALL SAID AND DONE the most important is what does Nicole & David think?
Our sincere thanks to you Mal & Gina.
Nicole & I have enjoyed our journey together, appreciated your guidance & advice & learned a lot from you.
Our decisions were more informed, more objective & more sustainable because of your trusted & valuable insights.
We are more than delighted about our acquisition of 25 Hawthorn Grove & can’t wait to make it our home.
Nicole & I look forward to continuing our relationship with you both.
With sincere gratitude & warm regards .
David, Nicole & Family Sunday 6th August 2023
JAMES BUY SELL
our spring clients are looking to BUY your home off-market now
Contacting Mal James on 0408 107 988 guarantees your privacy and no selling agents if you don’t want them – as well you get a market valuation from a real buyer’s perspective.
We have bought and sold 100’s of homes off-market, multi-agent (or none), Trustbox.
Here is proof – it’s not just talk – off-markets happen with James Buy Sell.
TOORAK big family home $12m + $18m
Two buyers – looking for homes completed – new builds – ready to move in. Both families have children at schools in the area. We bought St Georges Road last month for another client. We have buyers. Mal 0408 107 988 Sim 0400 304 111
ARMADALE family home $6m + $12m
2 Buyers – looking for ready to move in homes. Both currently living in Armadale and have homes to sell – swaps possible. Children at schools in the area. We’ve bought dozens of homes in Armadale – here is evidence map. Gina 0457 835 255 Mal 0408 107 988 Sim 0400 304 111
DOMAIN – the TAN – Downsizer to $3.5m
Who doesn’t love the Tan – we love buying for clients off-market here and having a coffee at the Bot. Gina 0457 835 255 Mal 0408 107 988. Looking for a downsizer – will do some work.
ALBERT PARK Investment $2.5m
GRACE PARK family home $6m
One single level, a classic or will do some work. North sides preferred. Grace Park is one of our favourite buying estates – here is evidence map. Gina 0457 835 255 Mal 0408 107 988 Sim 0400 304 111
URQUHART HAWTHORN $6m
Smart families who don’t want Grace Park or Scotch Hill love the Urquhart estate. And we love buying here is evidence map. Looking for a client up to $6m. Mal 0408 107 988 Sim 0400 304 111.
KEW: $4.5m renovated 4 bed/garage home
GLEN IRIS: 5 bed/garage home – $3.5M
BAYSIDE $2.5m smaller family home and will fully renovate as experienced.
HAWTHORN doctors rooms will reno $3m
Call us and be pleasantly surprised at how easy and private it can be. Mal 0408 107 988
What JAMES BUY SELL BUY SELL advice looks like
2021 Bought - $19m
2023 Sold - $23m
Normally we say nothing - privacy - but somebody else splashed it all over the papers. In 2021 we bought for our client. This week sold for a $4m gross profit in 2 years. Same home, same agent. In fact same clients we acted for on another $4m+ profit Toorak home previously. That's a +20% uplift as the Toorak median dropped 10%.
"It's easy when you work for smart people." Mal, Gina and Sim