Episode Transcript
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TOM PANOS (00:00):
Do you know?
Today I saw a buyer ask anagent where's the sewer line run
?
And the agent goes I'm not sure.
And it was just a pause.
I just looked at him.
I said go, look at the contract.
Go look at the contract and youknow what he did.
Then he's flipping through thecontract like he's reading a
(00:23):
novel.
I said find the sewage diagramand show the gentleman where the
line goes.
Do you understand?
We've got people that arewearing suits, that don't know
what a sewage diagram is Basicstuff.
Now I have to say to you AI isrevolutionising what buyers,
(00:48):
sellers and agents are doing.
Let me go through.
Let me go through some of thethings I'm seeing at the moment.
In the last few weeks with AINumber one AI for real estate
agents point of view they canget smart lead scoring that
measures the behavior of clients.
(01:09):
That gives you these are thepeople that most likely will be
selling next in your database.
Do you understand that?
Do you understand now thatcompanies like Retar and Nurture
Cloud have got the ability andthey've been doing it a while
but there's more that are comingthrough, that are going to be
(01:29):
saying to people this is thebehavior of this person.
You should be calling themright.
There is AI at the moment thatis available, helping real
estate agents make appointmentsby having their personal AI
system.
There is AI at the moment thatis allowing you to actually put
(01:50):
in your realestatecom If you'rean agent your realestatecom,
your CRM reports and at the endof it say please give me a high
level vendor report that I canuse to send to my owner to
educate them about themarketplace.
(02:11):
And I've got to tell you, everytime I look at one of the AI
reports that are driven by thedata from REA slash domain and
the CRM systems REA slash domainand the CRM systems man, like,
all you got to do is get yourIgnite data from REA and you can
get yourself some reallyquality communication to help
(02:32):
your vendors accept the realityof the marketplace.
And whilst we're talking aboutthat, whilst we're talking about
that, let's make it really,really clear After week one, if
it's an option property, ifyou've got zero interest or low
interest, you should beadjusting guide.
(02:54):
If you've got 70 contracts outafter week one, you should be
adjusting guide.
If you've got low interestadjust guide down.
Adjusting guide.
If you've got low interestadjust guide down.
If you've got incredibleinterest, adjust, guide up, and
I've got to let you know thatfor me, there have been three
big things that have happened inthe world of real estate in my
(03:16):
40 years.
The first one was the emergenceof franchising into real estate.
I saw it with my own eyes inthe 80s All these yellow brands
and what have you open upoffices left, right and center.
Franchising to me was the firstreal revolution in real estate
in Australia.
The second revolution was whenthe internet started playing a
(03:41):
big play in real estate by usingplatforms mainly realestatecom
domain as well, where it's camein to actually replace print
media and allow consumers tohave equal knowledge as to an
agent and people were able tocommunicate by emails, not just
(04:02):
by phone calls.
Realestatecom domain and theinternet were the second biggest
revolution in real estate.
Let me give you the third one.
The third one, my friends, isAI.
Whether you like it or not,right now, buyers are going in
(04:24):
to auction open for inspections.
They're walking out and they'regoing straight to chat GPT or
grok Elon Musk's one, and whatthey're doing is now saying give
me three comparables to thisproperty that have sold.
They're also saying what do youthink this house is worth.
(04:49):
We may have solved theunderquoting problem.
Just tell buyers go to chat GPT, you can have the free version.
Put them in there.
Come up with what AI is saying.
The three comparables are In aminute.
(05:12):
I'm going to tell you threethings that Australia could do
that would make real estategreat again.
I've got to tell you, virtualstaging can be done beautifully
by AI.
I can convert this market wrapinto Cantonese Mandarin using
HeyGen in an instant.
I can actually have everylanguage translated from this
(05:39):
market rant, because if you workin cross-cultural markets,
you're going to be able to getthe attention of the people that
have that as their firstlanguage.
Do you understand that?
You can do what Ryan Serhandoes, and that is use apps like
(06:00):
Crystal that does a personalityassessment of the vendors before
you go to a listingpresentation.
You put their Facebook,instagram, linkedin accounts and
it gives you a disc assessmentand it actually says this is how
to sell to these people.
There's a few of thoseapplications Crystal and
Humantic are one of those andI've got to tell you those
(06:22):
applications Crystal andHumantic are one of those and
I've got to tell you anyone inreal estate at the moment that
can wait for a month or twobecause my schedule's pretty
full on.
I am running AI in real estatecourses.
I ran one yesterday at MGM inthe Southeast how AI can help
you make more listings and getmore sales.
Now, team, I'm going to sharewith you a couple of things that
(06:46):
I think the government could doimmediately to make real estate
amazing.
Number one we've got toincrease the barrier to entry in
real estate.
It's not right.
It's not right to have someonewho's sweeping the streets as a
(07:07):
cleaner on Friday and thefollowing week advising vendors
on how to market and sell theirhouse that's worth $3 million.
It does not stack up.
House that's worth $3 million,it does not stack up.
The barrier to become a realestate agent is too low.
If you are vertical and you'vegot a pulse rate, you can get
(07:30):
into real estate and think aboutit.
We're playing with people'sassets that for the majority of
people, it's the biggest assetin their whole life.
Education that involvesnegotiation because, whether we
(07:52):
like it or not, our job as areal estate agent is essentially
negotiating all the time and asfar as I'm concerned, I'm
seeing some of these real estateagents out there being out
negotiated by their buyers andsellers.
I'm going to say that again,some of the people that agents
deal with negotiate better thanthe agents.
(08:13):
They're going to have to learnhow to negotiate better.
Number one.
Number two basic understandingof a contract.
Do you know?
Today I saw a buyer ask anagent where's the sewer line run
?
And the agent goes I'm not sure, and it was just a pause.
(08:35):
I just looked at him.
I said go look at the contract.
Go look at the contract and youknow what he did.
Then he's flipping through thecontract like he's reading a
novel.
I said find the sewage diagramand show the gentleman where the
line goes.
Do you understand?
We've got people that arewearing suits that don't know
(08:58):
what a sewage diagram is.
Basic stuff, product knowledge,right.
So you've got to improveeducation.
The next thing I would do is Iwould have, for auction
properties, the auction agencyagreement is a public document.
It solves every problem On theagency agreement.
(09:23):
The agent has gone in there andhe said this is my view on
value.
Right, make it public, put itthere, put it on the table in
the living room.
Right, have one document.
The buyers and sellers Make theagency agreement, say hey,
listen when the buyer says oh,what's this going for?
(09:43):
Well, mr and Mrs Buyer, what Ican tell you is that I'd like
you to go on to chat GPT.
Compare the three or fourcomparables.
Here is the agency agreementI've given to my owner.
Here is where it's at.
Our owner really wants to sell.
Be there.
They wouldn't be going toauction and investing 10 grand
in marketing if they weren'tserious.
(10:03):
That's the kind ofconversations that we need, and
we need people to have one cleardocument right.
The next thing I would do is Iwould definitely 100% get rid of
multiple vendor bids that arein like there are parts of
Australia where you can havemultiple vendor bids Like why
would you have, why would youallow unlimited vendor bids on
(10:27):
an auction?
Like why would the vendor bidon their own property unlimited
times?
It doesn't stack up.
Can someone tell me what's thethinking behind that rule?
Tell me what's the thinkingbehind that rule?
Right, one vendor bid.
I know that's the law in NewSouth Wales.
One vendor bid.
You put the one vendor bid in.
Why do you use it?
Oh, I don't know.
(10:47):
You're there.
No one's bidding, you'rewaiting for 10 minutes.
You might use it as an openeror everyone's bidding, and
they're $300,000 off the pace ofwhere the owner is put in a
vendor bid and say, guys, girls,let you know, let's be
transparent, you've got nochance of buying this property
unless you're over this vendorbid.
Totally get it.
You only need one of those.
So I'd get rid of that.
(11:09):
I'd get rid of the rule of lotsand lots of vendor bids.
And the last one is I'll tellyou what I would do.
I would come up with a solutionto actually have a pest and
building inspection, nodifferent to the way pickles, no
different to the way pickles dowith car auctions.
Like you go look at pickle carauctions, you can see a report
on the car.
It's a very summarised reportbut it gives you a sense of
(11:30):
confidence, right?
What if you actually sell?
All auction properties got tohave the pest and building
available.
And I mean I know there arecompanies like Before you Bid,
that actually have got thatservice available, but it
requires an agent to trigger itbecause it's not law.
But I've got to tell you a lotof the frustration a buyer's
having with properties atauctions is the fact that
(11:52):
they've got to spend, you know,money on pest and building
inspections with no certaintythat they're going to get the
property.
Then they think to themselves,what if we don't get a pest and
building bid on it end up withit and it's full of white ants?
Then we're stuck.
That's the dilemma, right?
Why do you think they'recalling Office of Fair Trading
Consumer Affairs on Monday?
It's because life is hardenough to buy real estate in
(12:12):
Australia because of the housingpricing issues, then the cost
of buying pest, buildingsolicitors looking at a contract
for you that you might not endup buying, but you just want to
have certainty.
So they're probably the changesthat I would say would improve
real estate in an instance.
And the breaking news is that inanother week, like last week,
(12:34):
it's been 100%.
That's right, nine sold out ofnine.
And that follows last week,which I think was 12 out of 12
or 13 out of 13, hi, angela.
And that includes prior, amonth before that, which I think
was also 100%, and then it waslike 95%.
The week before that I missedfour weeks when I was overseas.
(12:56):
I'd gone to England for workand I'd gone to Greece to have a
few weeks off and a wedding.
So I had missed that period oftime.
But to me I have to say to youthis is a good real estate
market.
This is a good real estatemarket and I've got to let you
know that, whilst I sometimesthink the market is bipolar, I
(13:20):
mean that bipolar in the sensethat you think one property is
going to go off and it's notjust me saying it as an option
here.
I have real estate agents thattell me they list a property,
they walk out of there and theythink to themselves this is
going to go off and it doesn't.
And then they have anotherproperty which I think is like
nothing flash, and they end upgetting five or six people on it
(13:41):
on week one.
That's what I mean by a bipolarmarket.
But I'm actually thinking tomyself that we're definitely
moving towards a seller's market.
It's not quite there yet, butwhen you're getting 100% out of
100, when you're getting 100%,it says to me that the mood and
(14:03):
the sentiment is good.
What's fueling this?
Obviously, august 12, august13,.
The RBA is having a meeting andnearly everyone that has an
opinion on rates are sayingrates are coming down.
So that's probably the reason.
(14:24):
In fact, this morning I waslistening to Tim Lawless, who is
the head economist of RP DataCore Logic, and he was saying
that right now, if you're aseller or potentially coming
onto the market, that yourtiming should be sooner rather
than later.
(14:44):
Because, even though that thereis going to be a rate cut, it's
highly likely the increase instock that is about to hit the
market and there's a lot of itin spring is going to actually
counter effect the extra buyersthat might come out of the rate
cut.
(15:04):
That's what he said.
He actually also has a viewthat, even though we've got rate
cuts, he thinks that things aregoing to get to the point where
people won't be able to buythings regardless, so he doesn't
think that there's going to bestrong capital growth.
He thinks that there will begrowth.
On the 23rd and the 24th ofSeptember, real Estate Gym is
(15:30):
going to Byron Bay for a two-dayconference.
Only people that are in my RealEstate Gym are invited.
Invites are coming out in thenext probably seven days, but
please mark your diary.
Gym members.
23 and 24, two-day intensive.
(15:50):
We are going to make it theunmissable event of 2025.
Now, team, before we go, I'vegot to let you know August 21,.
Mark your diary because theevent is on unmissable, this one
as well.
(16:11):
It's called Ready, it's atRandwick, it's presented to you
by realestatecomau, rea.
I'm speaking at that event andI'm going to be speaking about
what the top 1% are doing, andREA have been kind enough to
actually give my tribe adiscount if they use the code
(16:36):
realestategym.
I'm going to make sure in thecomments or in the post we've
got the URL for you to go there.
It's $550.
They've paid $100 off andyou're going to be able to see
Ned Brockman, simone Biles,cathy Freeman and a lot of other
(16:56):
great speakers August 21.
Ladies and gentlemen, thatconcludes another day.
Tomorrow I am doing auctions.
I'm letting you know that.
I'll make sure that I'll putsomething up online and, as they
say, the last five months ofthe calendar year in real estate
(17:18):
are always better than thefirst five months of real estate
.
It's happy days at the momenttoo.