Bellevue Hill home sells for $3.5million more than the price guide – sparking a Sydney real estate agent war of words
A fierce row has broken out between Sydney estate agents over the sale of a ‘small, modest house’ in the eastern suburbs for $7.8 million – more than double the original target price.
The humble-looking bungalow at 6 Lennox Avenue in Bellevue Hill passed the $3.5 million mark initially listed for sale by agents Harcourts Byrnes Marsh Shaw, outraging a handful of potential buyers.
The property, which has a combined bathroom/laundry room and four-car gravel driveway, was on the market for just a week before being sold on Sept. 1.
It was advertised as ‘the pinnacle of sophisticated living’, with a 468 square meter block and ‘the possibility (subject to council approval) to add an extra floor, swimming pool, outdoor living and much more ‘.
This unassuming-looking bungalow in exclusive Bellevue Hill exceeded pre-auction expectations by selling for an extraordinary value of $7.805 million
The federation bungalow at 6 Lennox Avenue on Bellevue Hill more than the $3.5 million initially declared by Harcourts Byrnes Marsh Shaw in the Sept. 1 sale
Mark Mendel, a real estate consultant and licensed estate agent who attended the initial inspection, told Daily Mail Australia it was immediately clear to him that the price list quoted was completely wrong.
“I saw it online for $3.5 million, it was quickly published on Domain and then taken down, and my friend was told the same by the agents.”
He said the open for inspection was busy, with at least 60 people in attendance.
Mr Mendel described it as ‘a small, unassuming property in an exclusive suburb’.
“I told my friend that the price list was wrong before we even walked through the door,” he said.
“As I walked over, people walked out…frustrated (at the price).
They thought it was unrealistic. There was an offer of $5 million on the day of the first open day.’
Mr Mendel claimed that the property market in Sydney is ‘broken’.
“I’ve been a licensed real estate agent for 15 years and it’s in my interest to make sure it’s a fair fight to buy a property and not one-sided,” he said.
“There needs to be more transparency in the sector.
“There’s no point in bringing people in and wasting their time, energy, and money on building and pest inspections and strata reports if they can’t afford the property.”
But the selling broker, Peter Shaw, vehemently denied any suggestion of under-quoting, saying he was “damn proud” of the result.
He said “normal comparisons don’t matter” in Sydney’s eastern suburbs.
‘You are dealing with people who have so much money that normal comparisons are irrelevant.
“This is the top of the city, there is so much wealth. They buy the best part of the best city in the best country in the world.
“For God’s sake, the Packer family owns a house 300 yards away, you’re talking top notch.
“I have no problem saying I think the buyer paid a premium, but to you that’s the Eastern Suburbs.
‘Through tenacity I get to a damn good result. I’m damn proud of it and I’ll be singing from the rooftops.’
When asked if a $3.5 million house sold for nearly $8 million represented a great result for buyers, Mr. Shaw replied unrepentant.
The detached house has a combined bathroom/laundry room and a ‘four-car’ gravel driveway and was on the market for just a week before being sold ahead of its scheduled auction
The sale sparked a row between two Sydney estate agents, including Mark Mendel (left) who visited the first open house and selling estate agent Peter Shaw (right) who told Daily Mail Australia he was ‘damn proud’ of the record price.
The property was briefly advertised for $3.5 million, the same amount initially quoted to potential buyers, before being revised upwards to $4.5 million. In the photo, the message informing buyers about the price guideline has been raised
‘Who do I work for? I work as a salesman,” Mr. Shaw said.
“I’m there to raise as much money as possible for my seller. I make no apologies for that.
“If you expect $4 or $4.5 million and you get $8 million, are you going to mess around? You’re not, are you?
“Someone has to set a record sometime. There will always be disappointed buyers.’
He claimed that Mr. Mendel was a “keyboard warrior” and a “disgruntled buyer who was missing out.”
“It’s so easy to go online and bash agents,” Mr Shaw said.
“I challenge any other agent to have a fairer and more transparent process than I have.”
People who registered for updates were sent a revised $4.5 million price guide via text message after the initial inspection.
“Due to the overwhelming demand for the property, the price list has now been updated to $4,500,000,” Mr. Shaw wrote in a text message.
Mr Shaw said he has fulfilled the obligations of the Department of Fair Trading ‘to the bone, every step of the way’.
Underquoting, which is illegal, is seen as a major problem for buyers in the housing market. Pictured: People at an auction in Sydney in May 2023
Mr. Mendel claimed that agents are supposed to set pricing guidelines based on at least three “comparable sales.”
“I’d like to see the agent’s list of comparable sales,” he added.
But Mr Shaw claimed he thoroughly researched local online sales before arriving at his estimates.
“Every three-bedroom, 1-mile home sold in the last six months was in the report we used.
“It yielded a target price of mid to late three million.”
He claimed that some of the data on local sales could be out of date because so many agents fail to disclose sales prices and sell “off-market.”
“The thing to keep in mind, the prices are withheld from the sale. The public will not be able to see other awards taking place because they have not been made public.
You can’t see the last six sales that took place around the property because they haven’t been made public.
“The whole system needs an overhaul. It’s rotten to the bone. That is why the public is dissatisfied.’
Mr Shaw texted interested parties after the sale took place saying that ‘some extremely racy offers have been made’.
“This far exceeded the owner’s expectations and he is extremely happy with the result.”
Underquoting, which is illegal, is seen as a major problem for buyers in the housing market.
Some estimates say agents routinely underrate by up to 30 percent.
By law, sales brokers cannot advertise a price lower than a “reasonable estimate (as set out in the agency agreement with the seller).”
They must also be able to demonstrate how they estimated the selling price ‘or revised selling price’.
Agents caught underbidding can face fines of up to $36,000, but more importantly, they can lose their commission.
Commissions usually range from 2 to 2.5 percent, meaning a real estate agent will earn at least $40,000 from the sale of a $2 million home.
Mr. Mendel alleged that the agent who sold 6 Lennox Avenue would have made $150,000.
He wants officers caught under-quoting to “set up a 3-strike system that is visible to everyone.”
‘After three strikes you simply lose your driving licence. They’re bad cops… giving a good industry a bad name.”
On its website, Harcourts Byrnes Marsh Shaw claims to have “over $1.5 billion in sales and managed over 800 properties.”