The owners of a Port Stephens home turned down an additional $50,000-plus to ensure their Nelson Bay property sold to a local family.
The four-bedroom home at 94 Government Road received offers of more than $3.5 million before ultimately selling for $3.45 million late last month.
Selling agent, PRD Port Stephens' Dane Queenan said the sellers, who were downsizing, had taken the unusual step of knocking back the highest offer.
"We had multiple people fighting for it so we negotiated a deal prior to auction," Mr Queenan said.
"There was a client who offered over $3.5 million, but the clients chose to go with the current buyers because they were locals.
"Most people would have taken more money."
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Mr Queenan said the sale was a record for the street, and the second most expensive home to be sold off the waterfront in Port Stephens.
It follows a huge year for sales in the area, including six results of $3 million-plus in Corlette.
A three-bedroom waterfront cottage at 4 Sandy Point Road attracted considerable interest from Sydney buyers before selling for $4.1 million last month.
It fell narrowly short of the $4,375,000 suburb record set in June by 70 Sandy Point Road.
The four-bedroom home boasts a deck that opens out onto the waterfront and was sold by Bill Knaggs Real Estate.
Mr Queenan's off-market $5.55 million sale of 59 Soldiers Point Road, Soldiers Point, remains Port Stephens' residential benchmark.
