The property was passed in at $560,000 after two local bidders vying for the home stepped down.

Before going to auction, the central three-bedroom period-style home was expected to sell for between $565,000 to $620,000.

Bidding was slow to start with a vendors bid of $500,000 put forward with no-one throwing their hat in the ring.

The auctioneer requested bids of $20,000 increments and when a prospective buyer requested a bid of $10,000 it was rejected.

Another buyer got the ball rolling at $520,000 with the bids between the two parties increasing in a mix of $5000, $10,000 and $20,000 increments until landing on $560,000 but it did not sell.

Negotiations are being made.

IN OTHER NEWS:

A two-bedroom low maintenance open plan living unit at 14 Shadforth Street, Terang sold for $320,000 - which was $20,000 over the reserve.

Ray White Warrnambool sales executive Tessa Dayman said bidding was between Terang, Warrnambool and Camperdown residents with the successfel bidder being a first home owner.

She said a "unique" three-bedroom five-acre property at 225 Hughs Road, Wangoom sold at auction "inside the range" on Saturday under the hammer for $775,000.

"It's a really beautiful home dating back to the 1880s - it's really quite spectacular," Ms Dayman said.

Vacant land at 20 McPherson Crescent which was also set to go for sale on Saturday was sold prior to auction.

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