June 21, 2025 • 9 mins
⚠️ Vendors: Use THIS Incentive Scheme to find out how much your house will truly sell for
05:18 – Today has been my most successful auction day in years. Clearance Rate: 11/11Â
Buyers all met the reserves – no adjustments
One property SOLD for $700k over reserveÂ
FOMO was in the market today. But one hot day doesn’t make it Summer
07:31 – The Zero Commission Listing
I'm heading to speak at a few conferences in Europe. See you in a few weeks!
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Real estate commissions.
I want to touch on this.
The vendor asked me what wouldI do as a commission scheme if I
was selling my house.
And let me tell you what Iwould do.
What I would do is I wouldactually say to an agent when
they came over what do youreckon you'll get for me?
(00:20):
Let's assume they said we'llget you 1 million.
I know real estate agents areoften optimistic when they're
trying to secure your business.
So you know what I would say tothem you reckon you can get a
million, million.
And I'm going to, hey, markMark, congratulate you.
(00:42):
I want to.
You know, I just finished anauction with you and I'm going
to congratulate this guy.
I've worked with him for a longtime and I just had a look on
realestatecom.
He's done 291 sales.
(01:02):
Now I've got to tell you that'san extraordinary effort.
That's an extraordinary effortby any real estate person in
this country.
So what would I do?
I would go 1% up to a millionand then what I would do is I'd
say over a million, give me abonus, give me 10% over a
(01:28):
million.
I would say I'll give the agent10%, and then what I would look
at is look at the reaction.
Look at the reaction of theagent, because if the agent is
confident that they can get the$1 million or thereabouts,
(01:49):
they'll say I'll take that, butif they're not, they're going to
want to muck around with your1%.
That's what I would do.
I would use a bonus scheme andif you are using a bonus scheme,
you make sure the bonus schemeis agreed to at the time you
(02:11):
sign up the listing.
Because I can tell you, rightaround Australia I've heard of
instances where real estateagents on the day of the auction
set up a bonus scheme right.
But you need to understandthat's not right, because
usually the agent has had fouror five weeks using a term
(02:33):
called vendor management or someagents call it conditioning,
which is a disgraceful word forit, and what they do is they,
you know, erode the vendorsexpectations down and then, in a
vulnerable scenario, on themorning of the auction, they'll
put in a bonus scheme having thelower reserve, whereas if you
(02:54):
set it at the time of thelisting you can say, no, we
agreed at 1 million.
That's what I would do with afee.
Right Now, with real estatecommissions, I have to say, if
you're a vendor that's watchingthis, be very concerned about a
real estate agent that dropstheir commission in a
(03:16):
negotiation with you whenthey're at the house trying to
secure the business.
And I'll tell you why.
You see, the first sign is thatif a real estate agent is
prepared to cave in on their fee, they're going to be caving in
to the buyer that negotiates,because it means that that agent
(03:39):
is not a 10 out of 10negotiator.
That's the first thing I'd bereally concerned about.
I'd be concerned about the factthat the agent might have
dropped their commission by that.
The agent might have droppedtheir commission by let's assume
, the normal fee is 2% andthey're prepared to do it at 1.5
(03:59):
, they're dropping it by half apercent.
That is, in fact, they'redropping their fee by 25% of the
total fee.
Now I want you to visualize.
This is the same person that'sgot to go out there and
negotiate with the buyers andtry and get buyers up.
And I've got to tell you myexperience is that some buyers
(04:24):
are significantly betternegotiators, significantly
better negotiators than actuallythe agents.
So you need to hire a goodnegotiator and a really big sign
is the way that they managetheir fee at the time that you
secure the business.
So the cheapest agent and thebest agent is generally not the
(04:50):
same agent and I've seen a lotof vendors lose tens of
thousands of dollars at the timeof sale because they tried to
save half percent when theysigned up the listing.
Beware of it.
The good news is, often peopleare negotiating and worried
about the fee.
Like, realistically, you'reonly going to be paying a fee
(05:14):
when you're happy with the pricethat you get at the time of
sale.
This has been my most successfulauction day in years.
I'm letting you know today is11 out of 11, but that is not
the main thing.
The main thing is it was 11 outof 11, with the vendors not
(05:39):
having to adjust their numbersdown.
The buyers met the reserves Iwas given.
In fact, there was one propertythat ended up selling, I think,
around $700,000 more thanexpected, more than the reserve.
(06:01):
I think.
That was in the eastern suburbs, randwick, and I said it last
week.
We're in a patchy market becauselast week I think I did less
than 50% and there are weekswhere I've sold one or two out
of 10.
And today it was this.
(06:22):
Please don't jump into anyconclusions 11 out of 11 is this
week's result.
Next week's result might beless Well, next week's result
will be zero, because I'mactually not here.
I'm going overseas, to the UKto speak at conferences and
(06:44):
whilst I'm there, I'm going toget a bit of European sun in
some other countries, includingGreece.
So I need you all to know onething, and that is that today I
hadn't seen it in ages.
There was fear of missing out.
(07:04):
There was fear of missing out.
Now I'm not quite sure whetherpeople are thinking to
themselves that, as we come intospring over the next couple of
months, whether there's going tobe a lot of buyers out there
and what people are doing issecuring their real estate
future by going in before themin winter.
I don't know whether that's it.
Having said that, I did havegreat properties.
(07:27):
I don't know whether that's it.
Having said that I did havegreat properties, now I want to
let you know.
I've just been told by a vendorthat they that they did it at
zero commission.
(07:48):
Get ready for this.
The agent said I don't have anylistings at the moment.
I need to stay active.
If you're prepared to invest inthe marketing which they were,
I'm happy to do it at nocommission.
The vendor said to me have youever heard of a better deal than
(08:09):
that.
This vendor asked me what Ithink about the agent charging
no commission and I said well,look, this agent obviously has
got no properties.
He's doing it for free with aview of meeting people coming to
open for inspections.
He's doing it getting somemarketing on realestatecom and
domain and he's essentiallydoing it with the view that,
(08:33):
listen, if you've got buyers,you can work with them.
You'll sell that, you mightpick up another listing.
I don't like real estate agentsthat do that, and the reason why
is that I believe the agentdoing it for free and I've done
(08:55):
it before.
I've done things for free andsometimes I think you don't go
120%.
I think you don't go 120% whenyou do something for free, I
think you go 100% right, but,team, I wouldn't do it.
Anyway, team, you can tell I'mlosing my voice.
(09:17):
I'm pretty excited.
I'm off to the UK for anoverseas tour and then I'm going
to get a bit of sun.
See you in a couple of weeks.
Real estate commissions.
I want to touch on this.
The vendor asked me what wouldI do as a commission scheme if I
was selling my house.
And let me tell you what Iwould do.
What I would do is I wouldactually say to an agent when
they came over what do youreckon you'll get for me?
(00:20):
Let's assume they said we'llget you 1 million.
I know real estate agents areoften optimistic when they're
trying to secure your business.
So you know what I would say tothem you reckon you can get a
million, million.
And I'm going to, hey, markMark, congratulate you.
(00:42):
I want to.
You know, I just finished anauction with you and I'm going
to congratulate this guy.
I've worked with him for a longtime and I just had a look on
realestatecom.
He's done 291 sales.
(01:02):
Now I've got to tell you that'san extraordinary effort.
That's an extraordinary effortby any real estate person in
this country.
So what would I do?
I would go 1% up to a millionand then what I would do is I'd
say over a million, give me abonus, give me 10% over a
(01:28):
million.
I would say I'll give the agent10%, and then what I would look
at is look at the reaction.
Look at the reaction of theagent, because if the agent is
confident that they can get the$1 million or thereabouts,
(01:49):
they'll say I'll take that, butif they're not, they're going to
want to muck around with your1%.
That's what I would do.
I would use a bonus scheme andif you are using a bonus scheme,
you make sure the bonus schemeis agreed to at the time you
(02:11):
sign up the listing.
Because I can tell you, rightaround Australia I've heard of
instances where real estateagents on the day of the auction
set up a bonus scheme right.
But you need to understandthat's not right, because
usually the agent has had fouror five weeks using a term
(02:33):
called vendor management or someagents call it conditioning,
which is a disgraceful word forit, and what they do is they,
you know, erode the vendorsexpectations down and then, in a
vulnerable scenario, on themorning of the auction, they'll
put in a bonus scheme having thelower reserve, whereas if you
(02:54):
set it at the time of thelisting you can say, no, we
agreed at 1 million.
That's what I would do with afee.
Right Now, with real estatecommissions, I have to say, if
you're a vendor that's watchingthis, be very concerned about a
real estate agent that dropstheir commission in a
(03:16):
negotiation with you whenthey're at the house trying to
secure the business.
And I'll tell you why.
You see, the first sign is thatif a real estate agent is
prepared to cave in on their fee, they're going to be caving in
to the buyer that negotiates,because it means that that agent
(03:39):
is not a 10 out of 10negotiator.
That's the first thing I'd bereally concerned about.
I'd be concerned about the factthat the agent might have
dropped their commission by that.
The agent might have droppedtheir commission by let's assume
, the normal fee is 2% andthey're prepared to do it at 1.5
(03:59):
, they're dropping it by half apercent.
That is, in fact, they'redropping their fee by 25% of the
total fee.
Now I want you to visualize.
This is the same person that'sgot to go out there and
negotiate with the buyers andtry and get buyers up.
And I've got to tell you myexperience is that some buyers
(04:24):
are significantly betternegotiators, significantly
better negotiators than actuallythe agents.
So you need to hire a goodnegotiator and a really big sign
is the way that they managetheir fee at the time that you
secure the business.
So the cheapest agent and thebest agent is generally not the
(04:50):
same agent and I've seen a lotof vendors lose tens of
thousands of dollars at the timeof sale because they tried to
save half percent when theysigned up the listing.
Beware of it.
The good news is, often peopleare negotiating and worried
about the fee.
Like, realistically, you'reonly going to be paying a fee
(05:14):
when you're happy with the pricethat you get at the time of
sale.
This has been my most successfulauction day in years.
I'm letting you know today is11 out of 11, but that is not
the main thing.
The main thing is it was 11 outof 11, with the vendors not
(05:39):
having to adjust their numbersdown.
The buyers met the reserves Iwas given.
In fact, there was one propertythat ended up selling, I think,
around $700,000 more thanexpected, more than the reserve.
(06:01):
I think.
That was in the eastern suburbs, randwick, and I said it last
week.
We're in a patchy market becauselast week I think I did less
than 50% and there are weekswhere I've sold one or two out
of 10.
And today it was this.
(06:22):
Please don't jump into anyconclusions 11 out of 11 is this
week's result.
Next week's result might beless Well, next week's result
will be zero, because I'mactually not here.
I'm going overseas, to the UKto speak at conferences and
(06:44):
whilst I'm there, I'm going toget a bit of European sun in
some other countries, includingGreece.
So I need you all to know onething, and that is that today I
hadn't seen it in ages.
There was fear of missing out.
(07:04):
There was fear of missing out.
Now I'm not quite sure whetherpeople are thinking to
themselves that, as we come intospring over the next couple of
months, whether there's going tobe a lot of buyers out there
and what people are doing issecuring their real estate
future by going in before themin winter.
I don't know whether that's it.
Having said that, I did havegreat properties.
(07:27):
I don't know whether that's it.
Having said that I did havegreat properties, now I want to
let you know.
I've just been told by a vendorthat they that they did it at
zero commission.
(07:48):
Get ready for this.
The agent said I don't have anylistings at the moment.
I need to stay active.
If you're prepared to invest inthe marketing which they were,
I'm happy to do it at nocommission.
The vendor said to me have youever heard of a better deal than
(08:09):
that.
This vendor asked me what Ithink about the agent charging
no commission and I said well,look, this agent obviously has
got no properties.
He's doing it for free with aview of meeting people coming to
open for inspections.
He's doing it getting somemarketing on realestatecom and
domain and he's essentiallydoing it with the view that,
(08:33):
listen, if you've got buyers,you can work with them.
You'll sell that, you mightpick up another listing.
I don't like real estate agentsthat do that, and the reason why
is that I believe the agentdoing it for free and I've done
(08:55):
it before.
I've done things for free andsometimes I think you don't go
120%.
I think you don't go 120% whenyou do something for free, I
think you go 100% right, but,team, I wouldn't do it.
Anyway, team, you can tell I'mlosing my voice.
(09:17):
I'm pretty excited.
I'm off to the UK for anoverseas tour and then I'm going
to get a bit of sun.
See you in a couple of weeks.
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