"I couldn't believe it," the long-time stock and station agent said of the bidding at the auction 15 years ago.

"The price was going up in $50,000 bids - no one bothered to slow it down."

Eventually, when the hammer fell on the final bid, Benalong had sold for $1.25 million.

"It was a ridiculously high price," Mr Milling said.

But that's what happened when 11 separate groups wanted a piece of Dubbo's history that dates back to 1866. That and the fact that Benalong, on the Macquarie River, is one of the district's finest farm properties.

Since 1866 the property has been sold only three times. Twice through the one agent - Peter Milling.

The property , once part of the Cumboogle run, was established by John Tink, who came from a Cornish farm in England. He selected 576 acres and grew wheat with another district pioneer Thomas Baird.

With John Morris they established the wheat industry in Dubbo. By the early 1900s Benalong was 17,000 acres of "good land".

A "fine new" Federation-style brick homestead was built at Benalong between 1900 and 1903. It still stands today and will make a grand home with a little bit of "cosmetic work", Mr Milling said.

Herbert Tink, a son of its founder, purchased Benalong from his mother Margaret and sister Mabel for 26,000 pounds in 1926. It remained in the Tink family until 1971 when Strath and Elaine Stevenson of Terra Bulla purchased the property.

In 1988, the Stevensons sold it to its current owners.

"It's a beautiful property," Mr Milling said.

"The view to the river from the front verandah is absolutely stunning."

Mr Milling is loathe to put a value on the property despite his association, as agent, with the 1971 and 1988 sales.

"The property market around Dubbo is red hot at the moment," he said yesterday.

"It don't think anybody really knows what it is truly worth."

The first advertisements for the property started appearing in the metropolitan press yesterday. Benalong will be auctioned next month.