Case Study: 14B Judea Road, Judea
Buyer demand, a defective title and an outstanding result.
- A cross lease property with approximately 650m2 of exclusive use area
- Four large bedrooms, two bathrooms, and decent living and kitchen areas
- Reasonable condition but could benefit from landscaping and other upgrades
- Quiet and private location down a right of way with off-street parking, garaging and garden shed
The property features a master bedroom extension that is not shown on the flats plan* deeming the title defective. Lenders tend to avoid lending on defective titles meaning securing a mortgage can become very difficult for buyers.
When our vendors purchased the property around five years ago they were aware the flats plan was not up to date, but easily secured a mortgage, perhaps a sign of just how much things have changed. During the five years they owned the property, they did not update the flats plans.
The interest in this property was outstanding - a massive 147 groups through the property in four weeks. 55 of those groups came through in the first week (not easy to socially distance 55 groups in a four bedroom home!). The majority of people who came through were first home buyers, with investors and upsizers also keen.
It became very clear very quickly that buyers who had deposit amounts of 20% or less were going to find it hard to get lending on this property due to the defective title. It's no secret that lending restrictions across the board have become much tighter in the aftermath of COVID and this was evidence of it.
But, interest in the home remained strong, and this property is a great example of just how many people are searching for a well presented four bedroom, two bathroom home within the city limits. We managed to expose the property to almost 12,000 unique views online - we were not lacking in prospective purchasers!
Come auction day we had seven registered bidders, a full room, and plenty of conditional interest.
Bidding was spirited with five parties competing for the property. Bidding paused at $650,000 and we were able to negotiate with our vendors and the leading party, selling the property under the hammer for $680,000.
- Appraised at $600,000-650,000 12 months ago
- 157 groups through the four-week campaign
- Seven registered bidders
- Sold under the hammer for $680,000
- $165,000 over RV
Our vendors are pleased with the result - "we had an extremely successful marketing campaign with hundreds of people through our open homes and sold for more than we expected. Overall fantastic experience with a top-notch agent".
14B Judea Road is evidence that buyers currently in the market are decisive and motivated to purchase. This real estate cycle is unlike anything that has been experienced in recent memory, it is much harder to predict where the market may head next. If you have been sitting on the fence as to whether to list now, what are you waiting for?
If you're curious to know what your property is worth in the current market get in touch - our appraisals are on the house.
*A flats plan is a plan that forms a part of the cross lease title. The flats plan shows the outline of the buildings on the section and shows the building a "flat" or "area" number (e.g. Flat 1 or Area 1). It also identifies any "exclusive use" areas related to properties. When the footprint of a building changes on a cross leased property, it is a requirement to have the flats plan updated which involves surveying and legal costs and can be in the vicinity of $10,000-$20,000. It requires the consent of cross lease neighbors and can take three to six months or longer.< Back to Blog Articles