Same House Same Agent 50% up in 3 years
James Buy Sell Top End Marketnews. Posted Saturday. Inbox Monday
Grace Park Hawthorn looking better every week
3 Chrystobel Crescent Hawthorn (Grace Park). Sold under the hammer today by Desiree Wakim for $7,400,000 – 2 bidders – no change in the home from 2020 when it sold for $4,850,000 with the same agent
2020 - $4.85 million
2023 - $7.4 million
Its a Volatile 2 speed market - reno vs no reno
In almost every way you measure it, 25 Hawthorn Grove stands out as a significantly better home. However, when it entered the market, it was met with a perception that it needed some improvements. As a result, its price was discounted accordingly.
On the other hand, 3 Chrystobel had a tough time finding a buyer in 2020. You could attribute this to the timing of lockdowns or the fact that the house had some issues. But what’s undeniable is that it didn’t require any renovations.
Fast forward to 2023, situations have shifted.
In today’s market, a house that requires no work is highly valued, akin to gold and the overall market is definitely rising.
On the flip side, a house in need of renovations is seen as far less desirable and the market is flat, in some cases falling.
We’re witnessing a clear divide in the real estate market when it comes to homes that need renovation. Even when sellers offer significant price discounts, this doesn’t always change the perception, and a home that requires renovation work and is priced just slightly above its perceived value, won’t get a second glance from potential buyers.
To back up our argument, let’s consider the cases of 25 Hawthorn Grove and 3 Chrystobel – both sold this month.
25 Hawthorn Grove garnered a lot of attention, with 4 enthusiastic bidders. In contrast, Chrystobel only had 2 interested parties. The 4 bidders for Hawthorn Grove recognized its exceptional quality and style. Ultimately, though there were more resources available, the fear of dealing with architects, builders, and the uncertainties of renovation costs and timing led the 4 bidders for Hawthorn Grove to stop at an $8 million bid – but on a significant lesser home NOT needing any work 2 potential buyers went harder and harder on the fact it was ready to move-in, no work required.
This showcases the dynamic of reno v no reno in the market. Even though a house like 25 Hawthorn Grove had more bidders and likely higher budgets, the apprehension about renovations was enough to outweigh the fear of missing out. It’s a stark example of how the perception of renovation needs can greatly impact a home’s value and desirability in the eyes of potential buyers in the Spring of 2023.
25 Hawthorn Grove
1130 sqm
Aug 2023 - $8 million
3 Chrystobel Crescent
a lot less at 830 sqm
Aug 2023 - $7.4 million
2023M3 is all about if you need a reno or not
Its a Volatile 2 speed market - on vs off-market
There is a lack of urgency sneaking into some Off-market homes – eg those needing work, those who don’t have all the paperwork AND those not serviced by multi-agents – a system that doesn’t run out of ooomph after a single agent’s first fortnight, when their small database has been exhausted.
2023 M3 Spring 100 Auctions starts here - next week
Is the Market like Collingwood? Flying in June, floundering in August? Absolutely and that is what our Top End markets are like – one week at a time and opponents on the day make a difference.
Property Markets ARE NOT linear and not consistent and change every week and can change substantially.
The news from the fin review recently on the market was 2-3 months old.
Tune-in next week for Bidderman, Clearance rates and auction reports (real ones) and find out what is really happening @ Melbourne Top End.
Notice 2 Crestmont over $10m quote is under offer – interesting home.
Its a Volatile 2 speed market - bidding v no bidding
Auctions are not always about the number of bidders – they can also be about the highest and the underbidders’ alignment of determination and resources, as evidenced in Grace Park recently.
'Round the Grounds
With Kaine Lanyon also a birthday boy (yesterday) – same age? We were at 24-26 Herbert St Albert Park – has had a makeover since we were there when it last sold – no not me or Kaine, the home. Happy to talk to you about it as a buyer!
At 3 Avondale $15.5m to $16.5m which has also had a makeover – with the very classy Jamie Mi and the young up-and-comer – who may well be a star – Rae Mano. The finishes are exquisite and now I have seen a second in home basketball court. Rating available.
3 heads are better than 1, although the guy in the middle makes the most sense. With Mark Wridgway at 16 Horsburgh – a very good apartment with a very good agent – $8m to $8.8m
Not everybody will like this reno at 14 Horsborough ($4.2m to $4.6m) but they will like Gowan – I do.
We are both laughing at a mutual joke shared about a hypothetical difficult client.
Its tough on us but we were both willing to put our principles, morals and ethics aside due to a large commission. Truth in real estate.
Renovations are volatile but James Buy Sell can help!
How do you find a perfect architect – one who gives you a beautiful renovation, a reno you and your family are really, really happy with?
Firstly, you need to take charge and set the ground rules from Day One (and stick tight to them) – you should not give a stuff about architectural awards (do they ever give a gold medal for client happiness). What’s really important and if possible, you are speaking to past clients who have used the architect(s) you are considering. Question them strongly and then send them a beautiful bottle of red – because if they were honest, they will have helped you immensely.
Secondly you start with a brief, this is so, so important and in that brief, you set out what you want. No not architecturally – that’s their job – we mean what you want to achieve when it’s finished.
Here is something radical in a brief. “I want 4 beautiful bedrooms and 2 living spaces, and I want it finished by November 2024 and for no more than $1,500,000 including all/your fees and I want my family to be happy.”
Below in the next section is what a brief looks like and how you start the process.
Thirdly and finally, you engage an architect who sees it as their role and is tied financially to meet your time, cost and happiness budgets AND you hire a mentor/guider/qualified advisor (who is not the builder) throughout the project costing say $10,000 to $100,000 depending on scope – who is also charged with time, cost and advisory control on your behalf.
But Mal, this will wreck the creative process. Bullshit! This will enhance the creative process, for the architect’s job now becomes about your happiness, more so than the building and for that, the building has a far higher chance of getting off the ground AND a far higher chance of becoming one of beauty (your eyes, the only real beholder).
What a Good Architectural Brief looks like
A lot of our buying advocacy work involves working with architects pre and post the purchase. In my 60 years I've learnt great ideas are not great, if they're not completed.
We always send the initial brief to all parties (architect(s), builder(s), advisors and clients) on the same email. Everything below is 100% real and this week, so its current. We insist on a return brief for them to be considered.
What JAMES BUY SELL EOI Advice looks like
Hampton family home - 5 Bedrooms
Multi-Agent - Off market
SOI: $2.9m - $3.1m
Jenny 0418 528 988
Julian 0418 558 408
Halli 0403 777 661
JAMES BUY SELL
our spring clients are looking to BUY your home off-market now
TOORAK big family home $18m.
Classic family home on more spacious land – in a good location – nothing to reno.
Mal 0408 107 988 Sim 0400 304 111
TOORAK big family home $15m.
New Build family home – would like a great cinema room and a big garage.
Gina 0457 835 255
TOORAK big family home $12m
Will do some work – family home.
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. 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. Looking for a downsizer – will do some work. Kathy 0401 296 630.
South Yarra $6m
5 Br family home.
Mal 0408 107 988
GRACE PARK family home $6m
Classic or will do some work. North sides preferred. Grace Park is one of our favourite buying estates – here is evidence map. 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
ALBERT PARK Investment $2.5m
Call us and be pleasantly surprised at how easy and private it can be. Mal 0408 107 988
Hampton family home - 5 Bedrooms
Multi-Agent - Off market
SOI: $2.9m - $3.1m
Jenny 0418 528 988
Julian 0418 558 408
Glen Iris family home
$3.3m - $3.5m
Zali 0422 576 049
