#2: The Emotional Renovation
If you know me, you’ll know how much I love a villa unit. And a fully renovated villa unit, with an eye for detail and in a great location? Well, now you’ve got my attention. But a beautiful renovation can also make it very easy to get carried away.
A few months ago, my clients found exactly that kind of property. They inspected it and absolutely loved it. I was initially cautious about the size, but when I went through the following week, I could see why they were so keen. The owners had been clever with the floorplan, made great use of the space and executed the renovation beautifully. There was a tram in one direction, a train in the other, and shops, a community garden and plenty of local amenities nearby. It had a lot going for it. It also had that emotional pull—the kind that has you mentally moving in before you’ve worked out what you should pay.
We submitted an offer above the quoted range, at a level the vendor was prepared to accept, which brought the auction forward. Unfortunately, two other buyers were also prepared to pay more, and we found ourselves in a boardroom auction the following day.
The bidding was aggressive. My clients had given me a limit so high that I genuinely thought we would be buying it. In fact, I was uncomfortable with just how far we were stretching. We still finished as the underbidder.
The following morning, the feeling that surprised me most was relief. I knew how much my clients loved the home, but I was glad we hadn’t bought it at that price. And the following week? We bought another villa unit - a very similar property, in a similar location, for significantly less.
Another recent search brought a similar experience.
This time, it was a three-bedroom home with a smaller floorplan, a beautifully executed renovation and landscaped gardens. Add a prime location near trams, trains and Merri Creek parkland, and it was easy to understand why my clients fell in love - and they weren’t the only ones.
We were preparing an offer above the quoted range when another buyer got in first. We challenged that offer and ended up in a boardroom auction with three other buyers (gone are the days of boardroom auctions, but that's for another blog!) Once again, we were the underbidder.
We had already stretched beyond where we felt comfortable, and the eventual buyer was prepared to pay more than we thought the property was worth. I was more disappointed about this one, but I was still comfortable with where we stopped.
The search continued. We inspected plenty more homes, including off-market opportunities, before securing an extra-large townhouse with four bedrooms. Four bedrooms had actually been the original wish. Along the way, we’d started to think that might be out of reach.
Missing out was frustrating, but the home we eventually bought gave my clients more of what they needed.
Now, technically, these were two properties we were outbid on. But there’s always a moment when you have to decide whether to keep going. Ask for another increase. Find another few thousand dollars. Convince yourself that you’ve come this far, so you might as well finish the job. Those are the moments I’m happy to walk away from.
A good renovation deserves recognition, and sometimes a premium. There’s real value in being able to move straight in, without taking on the cost, time and disruption of doing the work yourself, although when quality stock is scarce, that appeal can create fierce competition.
It’s okay to love a property. It’s okay to stretch for the right home, provided you understand the trade-off.
You still need to be comfortable with the number once theexcitement has worn off.
Because the renovation might be finished, but you’re theone who has to live with the price.
We take the stress and anxiety out of the property purchasing experience.
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