Third Time Lucky: How Walking Away Twice Got Them the Right Redfern Terrace
The Brief
My client wanted to buy in Sydney's inner east, Surry Hills or Redfern. They had a clear investment plan: buy, renovate without overcapitalising, and sell in 3 to 5 years at a profit. We agreed I'd bid at auction if needed, but also watch for pre-auction sales. If we missed the first property, I'd cover two more under the same engagement.
The Search
Property 1: Small two-bedroom terrace, Redfern
Upstairs was tight. Two small bedrooms with no meaningful expansion without major structural work. Downstairs was liveable but the kitchen and bathroom were original condition and needed complete renovation within five years. The bathroom waterproofing was already failing.
The agent was open to pre-auction negotiation. Three parties in the running. When I priced it, I factored in significant renovation costs and the structural constraints. I valued it at $1.65 to $1.70 million, no higher. We negotiated but stepped back. Another buyer paid $1.75M.
Property 2: Micro terrace, Surry Hills
38 square metres of land. One of the smallest residential holdings in Sydney. Really a 1-bedroom plus a study. Good entertaining deck, excellent location.
Agent signalled auction only. I commissioned an independent inspection because the agent's report was thin. It revealed roof issues, water ingress, and a non-standard skylight from a renovation. Comparables were hard to find on a land holding this small, but I valued it at $1.65 to $1.70 million. We were underbidders. Someone else paid $1.73M, a Surry Hills price-per-square-metre record.
Property 3: Large two-bedroom terrace, Redfern
Before Surry Hills went to auction, I'd spotted a pre-market property that might suit them. After being underbidders, they viewed it and loved it.
Large two-bedroom, potentially convertible to three. Leafy street with a rare north-facing courtyard. Off-street parking. Renovated kitchen, bathroom scope for future work but not urgent. The comparables pointed to $1.70 to $1.75M. This time, owner wasn't locked into auction.
The Negotiation
We offered strong terms: 10% deposit, 21-day settlement. The property was vacant. We opened at the lower end of valuation and negotiated from there. We landed it at $1.70 million.
The Outcome
My client is thrilled. Spacious terrace, good bones, smart updates ahead. When they sell in a few years, they'll be in a far better position than if they'd overpaid on properties one or two.
The lesson: sometimes the best outcome isn't the first property you love. It's knowing when a property is replaceable, standing firm on valuation, and having the discipline to walk away. That's what gets you the right property at the right price.
The Outcome
My client is thrilled. Spacious terrace, good bones, smart updates ahead. When they sell in a few years, they'll be in a far better position than if they'd overpaid on properties one or two.
The lesson: sometimes the best outcome isn't the first property you love. It's knowing when a property is replaceable, standing firm on valuation, and having the discipline to walk away. That's what gets you the right property at the right price.
