The four-bedroom home at 64 Gilbert Street in Dover Heights went under the hammer on Saturday, and the selling agent, Michael Parlier, managing director of Sotheby's, said only: "It was an incredible result for the vendor, who had spent a lot of time on the property."

But other sources who were on hand to watch auctioneer Jake Moore's sale were more candid, revealing the $6 million reserve price and the frenzied bidding among the seven people registered.

"It was a wonderful auction," the source said.

"The starting bid was $6 million and it was a real mix of bids, $100,000 and $50,000 early on, but eventually it dropped to $5,000 and $10,000."

The auction observer estimated there were more than 80 bids.

It is understood that owners Sal and Lilian Savona - who bought the house for $131,000 in 1978, according to property records - are downsizing and preparing to move to a retirement home.

The new owners are an undisclosed local family.

Pictures of the listing show a much-loved four-bedroom, three-bathroom family home with a double garage and very splendid views from the deck and side windows.

Realestate.com.au notes that the 580sqm lot has considerable potential to either renovate the current home or build a "new, uniquely beautiful and large home".

Given the new owners' enthusiastic bidding, they may dig a little deeper and go for the second option.

The auction was the highest result in Sydney's eastern region in the past week, but there was a private treaty auction that went for even more.

The large circa 1880s terrace at 30-32 Victoria Street, Potts Point, sold for $14 million in the name of Teah Browne through Ted Pye of Belle Property.

It was last traded in 2003 for $1.885 million.

The terrace is located on a 270 square metre block and currently has two split-level flats, one comprising three bedrooms and three bathrooms and the other comprising two bedrooms and one bathroom.

In a corner position with views of the Opera House and Harbour Bridge, opposite a park with a garage.