Donnie the Dud vs. Larry the Liar 🗞️ Real Estate Market Wrap

Send us a text

0:44: Auction Results and Market Insights
1:49: Vendor Decision-Making and Market Conditions
3:23: Impact of Interest Rates on Property Prices
4:07: Traits of Effective Real Estate Agents
5:58: The Importance of Vendor Management
7:32: Political Influence on Real Estate Decisions

Episode Transcript

Tom Panos (00:01):
Well, good afternoon, ladies and gentlemen.
Good afternoon, good afternoon.
Let's wait for this audience tobuild up.
Not a lot of auctions for metoday.
I had said no to the bookingsthat had come in and most of

(00:24):
those bookings that come in latein December, with the view that
I was going to actually stillbe in Byron Bay.
But I then decided to work andI had two auctions scheduled and
one had no buyers on itwhatsoever.
So the agent called me thismorning and said we better not

(00:47):
go ahead with the auction, andthat auction has been moved
forward for another two to threeweeks.
So that's that one.
And then I had another propertyin Bankstown which I actually
live streamed on TikTok, and Ican tell you that that was a bit
of a fizzer.
I mean, there was bidding butit ended up being $70,000,

(01:11):
$80,000 short.
And I have rung around otherauctioneers and real estate
agents that I speak to and theyhave told me that it's been a
mixed bag.
It's been a mixed bag and thatsome of the results have been
okay.
There have been no results thathave been amazing, but it

(01:32):
appears that vendors haveaccepted this is the state of
the market and they're acceptingoffers and properties are being
sold.
So, contrary to what oops sorry, my phone went down there
Contrary to what a lot of peoplebelieve, oops, contrary to what
a lot of people believe, it'snot the buyers that determine on

(01:53):
whether a property is going toget sold.
It's actually the vendor,because the vendor turns around
and accepts the figure, acceptsthe price.
So that is why properties sell.
The vendor drops the price andsays yes to an offer, so a sale
takes place.
However, there is a cohort ofvendors that are saying listen,

(02:19):
I'm not going to accept thisfigure.
In fact, the one that I did inBankstown or Condal Park
actually said that.
They said that's fine, tom, weknow that rates are coming down
and when rates come down, theprices are going to go up and
we're going to get our price,which I had to remind them, yes,
but the one that you're goingto buy, which you want to go out
and buy out in Campbelltown,that will also go up.

(02:41):
So you need to understand thatyou're going to be in a revenue
neutral position.
What you sell and what you buy,that changeover number is going
to pretty much stay the same.
So the only thing I'll say isbut if you really think about it
.
Interest rates went up 13 times, 13 times.

(03:02):
Yet property prices were stillgoing up for most of those 13
months.
So to actually think that inFebruary, when we have that rate
cut, which on a million bucksit works out to being roughly
hey Mel, roughly $50 a weeksaving, I don't think it's going
to radically change thingsright.

(03:23):
Because if you turn around andsay to yourself, will one rate
cut mean that we're off to theraces with the market?
Well, we had 13 rate rises, yetproperty prices still kept
going up.
So I think Demand and supply isa far bigger contributor to

(03:44):
what actually happens withprices than anything else.
Yes, it stands to reason.
If rates go down, significantly, more buyers.
Sorry, gang, I need to get anew cradle.
This cradle keeps falling offthe car, so I'll just do it like

(04:04):
this, anyway.
So that's the point.
Now I've got to say I can't helpit, but I'm noticing that
there's about four or fivethings that good real estate
agents do that gets thembusiness done at the moment.
Let me run through them.
The first one is they're notLarry the liar, larry the liar,

(04:30):
and there's plenty of Larrys outthere.
There's plenty of Larrys outthere and a few Larissas out
there, for that matter, can'tjust say, larry, there's plenty
of out there where they go inand they really stuff it up for
themselves because they are toooptimistic.
They over promise price.
They tell owners definitivelanguage, we will get you that

(04:53):
number.
And then what they do is novendor education, no offers, no
vendor reports.
You know why?
Because they're embarrassedbecause they were Larry the liar
at the listing presentation andthen they don't want to become

(05:13):
the contradictor at the vendormeeting.
So their vendor management'sappalling.
And then what they do is theydo all their vendor management
right at the end in one go andthey lose total credibility.
I mean, it's just like astand-up comedy show that you
know a large proportions ofagents the way that they list a

(05:36):
property and then vendor manageit not the good ones.
The good ones, sort of, aresitting there and understand.
When they're at the listingpresentation they're telling the
owners listen, there's norecommended retail price in real
estate.
We can sit here all nighttrying to work out what this
home is going to sell for andwe're not going to get that

(05:57):
right.
And you know what, mr and MrsVendor, there's no pressure to
get it right, because what weneed to do is not nail the price
today.
We need to nail the processtoday.
We need to nail how we're goingto go about getting that price.
And I can tell you and David,can we get a tip in tonight's

(06:29):
derby, the sky will be sky bluetonight at 9.30.
In fact, david, I'm going home.
I'm home now.
I'm in the driveway, I'mgetting changed, I'm going to
the game.
It's going to be an absolutecracker.
So the agents that muddle thingsaround where they're
overpricing it, they're poor inthe vendor management, they're

(06:52):
not transparent.
They've got one story to thebuyer, one story to the seller.
Then they get desperate On thelast day before the auction they
throw off this sledge hammer.
No, you're not going to getthis price.
The owner's upset, that isabsolute rubbish.
But I've got to tell you if youcan actually do the other stuff
right, you're in with a goodchance to have a decent year in

(07:16):
real estate.
But I will say I think there isa small number of vendors out
there that are going to probablywait till after the federal
election before they put theirproperty on the market, with a
view that they think there'sgoing to be a Liberal win.
And if there's a Liberal win,it'll be better for the market.
I think there's a group ofpeople like that.

(07:37):
Anyway, ladies and gentlemen,I'm letting you know that I
think the preliminary auctionsare now out of the way.
As of next week, we starthaving large volumes again, and
the week after that it's goingto tell you where we're really
at.
Stay well and make sure, ifyou're a vendor watching this,

(07:58):
do not hire Larry the liar,because he's going to end up
becoming Donnie the dud.
And I'm going to finish thislive stream now, if I can.
You won't believe it.
I can't finish it.