Abandoned horror house stuns crowds at auction with insane price – realestate.com.au

A neglected home riddled with problems from decades of water damage has sold for nearly $3.9 million at an auction that stunned the crowd in attendance.

The three-bedroom house on a 300 square meter block in Bronte, in Sydney’s eastern suburbs, was described by the agent as “terminal” after being vacant for the past 20 years.

The price for the Palmerston Ave home was $3,835,000, $835,000 more than reserved.

Agent Angus Gorrie of Ray White Eastern Beaches told The Sunday Telegraph before the auction that the house was beyond repair.

“It’s dead,” he said. “The whole place is destroyed. Absolutely destroyed. There’s nothing you can save… there’s basically no kitchen. The ceiling has fallen in almost every room.”

He added that the house had the feel of “an abandoned haunted house.”

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The house on Palmerston Ave had been empty for decades. Photo: Jeremy Piper

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In one of the rooms there was a mysterious writing. Photo: Jeremy Piper

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“Water is getting in everywhere. The floor is damaged. You could (fall) through in some places. It’s a serious project.”

Mr Gorrie said the interest had come from experienced builders with plans to demolish the house and replace it with something new. “It’s too scary for most people,” he said.

There were 12 registered bidders. Seven offers have been made. The buyer is said to have plans for a complete reconstruction.

Mr Gorrie estimated that a builder would have to spend about $2 million on construction if he wanted a new home to meet the standard of nearby properties. A modern home in the area would be worth about $7 million, Gorrie said.

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It is not known how the house remained empty for so long.

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There were 12 registered bidders.

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“It was a huge result,” Gorrie said. “We knew it would attract interest because of the potential, but it was a bit eerie how much work was needed. It’s a sloping block. And there was no front door. Some people looked at the place and left.”

There was a crowd of about 100 people at the auction. “There were a lot of curious neighbors. They had been walking past it for years. There is a lot of interest in what could happen.”

Auctioneer James Hayashi was given a reserve of $3 million and the opening bid was $2.7 million. “It was probably the worst condition house I’ve ever auctioned,” Mr. Hayashi said.

Some passersby watching the auction were surprised at the final price.

“People might look at it and see that you would have to spend a fortune on the property,” Mr Hayashi said.

The sale took place during the busiest weekend for national auction activity in almost 19 months. More than 1,200 auctions were planned in Sydney alone, the highest weekly volume in three years.

Earlier on Saturday, this Roseville Chase sold for almost $2 million more than the price the seller paid in 2019.

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Crucially, the higher auction volume cannot match the increase in demand as buyers continue to benefit from recent interest rate cuts and government stimulus measures.

Michael Garofolo, director of auction group Cooley, said the market was particularly strong for properties under $1.5 million as that was the limit for the government’s First Home Guarantee Scheme, which helps buyers enter the market with a 5 per cent deposit.

Earlier today, in the Sutherland Shire, a 1,200 square meter property in Miranda changed hands for the first time in more than 80 years for $3.1 million – $105,000 more than reserved.

The family who owned the Karimbla Rd property are believed to have bought it when the area was semi-rural and dominated by smallholdings.

35 Karimbla Road, Miranda sold for $105,000 over reserve.

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Auctioneer Andrew Cooley of Avenue Auctions received interest from five registered bidders – all builders were attracted by the opportunity to replace the existing five-bedroom house with a townhouse complex.

In Sydney’s north, a Roseville Chase home that last sold in 2019 for $1.92 million has resold for $3.85 million after minor cosmetic renovations, up almost $2 million.

There were seven bidders registered for the auction of the three-bedroom house on Allan St and five made bids.

Selling agent Jessica Cao of Ray White Upper North Shore said the home attracted interest from downsizers, investors and upgraders.