The two-bedroom home, located at 2 Correa Close and within moments of schools, parklands and Russells Creek walking track, sold under the hammer for $516,000.

It sold well above the quoted price of between $430,000 and $450,000.

Bidding started at $430,000 with two buyers vying for the property which rose in lots of $10,000.

A late-entry bidder jumped in with an offer of $505,000 and the auction soon slowed to single bids of around $1000.

It was that third bidder - a Warrnambool resident - that ultimately purchased the property.

The emotional new homeowner was embraced by family and friends following the sale.

The property was sold by Harris and Wood's Danny Harris with about 30 people braving the rain to attend the auction.

Meanwhile, a late offer was made on a six-bedroom, two-bathroom sandstone property in east Warrnambool after it was passed in at auction.

Real Estate agent Matt Northeast made a vendor bid of $1.2 million but there were no bidders on the semi-detached dwelling at 1-2/90 Denney Street.

He said an undisclosed offer was later made by a local buyer and negotiations would be made with the Warrnambool owner.

"If that happens, it's fantastic and if it doesn't it may go on the local market," Mr Northeast said.

In Wollaston Way Estate, the starting price for an 18-month-old home beat the expectations of Ray White Real Estate agent Lachie Kelly.

At 15 McMahon Street, bids started at $650,000 with three Warrnambool buyers showing interest.

"It ran along in the $10,000s and $20,000s until one buyer bowed out at around $710,000," Mr Kelly said.

"It was two bidders from there, down to the last couple of thousand dollars before the final offer."

The property sold for $763,500 with the auction drawing a large crowd.

Mr Kelly said it sold above the top end of the range which was $649,000.

"It's a very strong result and the owners are extremely happy," he said.

"A property like that, which was presented just immaculately, really plays apart in the selling of it.

"There wasn't a thing wrong it."

Mr Kelly said the Warrnambool buyers came from out of town and were looking at downsizing.

"All the bidders were local buyers which is a really great sign for Warrnambool at the moment," he said.

The three-bedroom, two-bathroom property is situated on just under 400 square metres.

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