Real estate agents are negotiating with interested parties, after the the site that formerly housed Horsham's Vern Castle real estate was passed in at auction on Friday.
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Harcourt's Jock Uebergang said the opening bid for the vacant site on the corner of Darlot and Wilson Streets was $500,000.
"Potential buyers are a mix of in and out-of-towners," he said.
"We are finding things similar to other agents in town at the moment, in that commercial real estate is flat and there is a consolidation of businesses in Horsham CBD.
Mr Uebergang said he was hopeful this would change in coming years if the mineral sands development went ahead.
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Meanwhile, the Wilson Street site covering Wimmera Trophies and Premix King failed to sell following an auction in Melbourne on April 3.
Burgess Rawson director Shaun Venables said the building would be put back on the market after some upgrades to its roof. He said it was hoped it would sell for around $700,000.
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