July 26, 2025 ā¢ 23 mins
- 00:00 ā The market is in the mood for rate drops
- 01:15 ā The 'Vendor Price Discount Error'. Two reasons why there will always be a gap between the list price and the sale price (even in a boom)
- 08:21 ā What are the cheapest areas in Australia to buy a house?
- 09:07 ā The difference between a āTrusted Advisorā vs the āOverpromise & Undersellā Agent
My Clearance Rate: 12/12. Some even sold for $200K above reserve
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
I mean, the auction day's, the fourth week, the
campaign's over, so what are youdoing?
What's my view of the realestate market at the moment?
It's good.
It's balanced to above balancedmarket, and what we're seeing
is things are selling.
And why is that happening rightnow?
Because we are in the mood ofrate drops.
(00:23):
We are in the mood of ratedrops.
We are in the mood of ratedrops and because we're in the
mood of rate drops, the buyersare coming out there.
And I'm not going to say to youthat there's enormous levels of
stock out there at the reserve,and when I say $200,000 more
(00:50):
than the reserve, these werereserves that were pretty
aggressive because they'd had alot of interest on those
properties.
When I looked at those reserves, I thought they are aggressive
and the owners were prepared tobe flexible on those.
But we are definitely seeinghey, george, good to see you we
are definitely seeing amarketplace where the sentiment
(01:12):
is that rates are coming downand that it's pretty good.
Now I want to let you know thatyesterday I was having a
conversation with a real estatejournalist and it was about the
subject of vendors who have tocorrect price, and what it was
about was why do vendors have tocorrect price?
(01:35):
Why should there be a reductionstrategy right?
If a real estate agent does theright thing, why should a real
estate agent be encouraging avendor to reduce their price,
particularly in a for salecontext?
So let me run through someinteresting statistics.
What percentage of propertiesin Australia do you think sell
(02:04):
for lower than the listed price?
What percentage of propertiesdo you believe according to
CoreLogic RP Data?
I mean, I don't have arelationship financial
relationship with RP Data, but Iuse their app.
I'm not an ambassador.
They are probably the leadingdata company and they've got
(02:28):
some incredible data sets thatyou can look at.
And one of the most unlooked atby real estate agents is called
the vendor price discount errorGood term.
(02:48):
So John Dyer says 95% ofproperties that are listed get
sold for lower than they'relisted.
John, guess what?
You're pretty spot on and thatshouldn't come as a surprise.
So why?
Why, even in a good market, dothe majority of properties 95%,
(03:16):
says John.
The data set that RP Data has,that's a couple of years old,
says it's 75%.
But that doesn't obviouslyinclude properties that are
auctions, because auctions don'thave a list price right.
And then when those propertiesget sold.
You can't work out thevariation, but based on my own
(03:39):
auction business, I have a lookat what percentage of those
properties get sold for morethan what the owner wanted
originally, and I would say itwould be a small minority.
So I would actually say, john,that number of 90% is probably
where it's at.
So think about that concept forone moment.
(04:04):
In Australia, 90% of theproperties that get sold get
sold at a lower figure than whatthe owner was hoping for when
they've listed it.
This data set is available onCoreLogic.
Why does that happen?
So why does it happen?
Why is there a gap between thelist price and the sell price?
(04:28):
Well, let's go through it.
There's two reasons.
There's two reasons.
Reason number one, and the mainreason, is that nearly every
owner will want more for theirhome than what it's worth.
That's a fact, end of story.
Every owner also believes thattheir kid is the best looking
(04:52):
kid in the world and every ownerthinks that their home is worth
more at the start.
That's why real estate agentsexist to help an owner either
get that big hope price or atleast get educated on what
(05:12):
market value is, so that theysell at a fair market price.
So what is the average level ofdiscounting?
What is the average level ofdiscounting?
Roughly 5% across the countryand discounting changes based on
marketplaces.
So when you look at a balancedmarketplace like we have now,
(05:36):
right now we've got a bit of abalanced marketplace and that is
stock comes on, it getsswallowed up in reasonable times
and I've got to say to you,roughly, for a balanced
marketplace, it's around thefour to 6%.
That is the discount level.
(05:57):
When you've got a marketplacethat is a buyer's marketplace
right, when it's great forbuyers and that means that there
is sorry when it's you're right.
When it's a buyer's marketplace, when you've got a lot of stock
(06:19):
, a lot of stock and it's greatfor a buyer, what's the discount
level?
10% plus.
That's why, ladies andgentlemen, you've got to be an
outstanding vendor manager intough marketplaces.
If you're working right it'snot the case for me today right,
(06:47):
it's not the case for me today.
And in a marketplace that is aseller's marketplace, a
marketplace where there ishardly any stock and there's
lots of buyers, that's called aseller's marketplace, that's a
boom.
And when you've got a boom,believe it or not, you still
have a vendor discount becausevendors, even during a boom,
(07:11):
still want to get more.
It's human nature and I have tosay, oh.
By the way, people ask me whatis the biggest discount level
areas?
Now, that's something good tolook at.
A suburb in Townsville calledHeatley is around 11% right.
(07:33):
So when you go around thecountry you have a look at it
and there's some great data sets.
You can get them from sqm, um,rp data, all the companies now
and all the big portals, domain,rea, they've all got uh data
companies.
But I've got to tell you in ifI had to go look at it
(07:54):
nationally.
In summary, in terms ofdiscounts, melbourne has got 17
suburbs that offer discounts 10%plus over.
It's been a very challengingmarket, less so in Sydney and
Brisbane, in Sydney and Brisbane.
(08:17):
And I've got to also let youknow, for those of you that are
sitting there watching thisright now and are saying to
themselves, what is the cheapestarea in Australia to buy a
house?
Well, let me tell you, I'mgoing to give you the three
lowest median prices inAustralia at the moment.
If you want to get into themarket, but you really don't
have a lot, let me run throughthem Rockhampton, geraldton and
(08:41):
Devonport Devonport in Tasmania.
So I've got to say to you it'sso important, it's so important,
it's so important, it's soimportant, um, um and there's a
and there's and there's a.
It's so important that youunderstand whether, at any time,
(09:08):
what marketplace that you'reworking in.
Now what I want to do is gothrough because this is the
conversation I was having withthe journalist yesterday.
I was making the distinctionbetween what an agent that is, a
trusted advisor, house pricemaximizer, agent is Verse.
Let's call it the conditioner,let's call it the agent.
(09:32):
That's not the trusted advisor.
Let me go through what atrusted advisor agent does in
the management process and, bythe way, that was the other
conversation I had with her.
I despise the word condition.
It's a word that I don't use.
(09:53):
You would never have heard meuse that word.
I despise it because when Ithink of the word condition, I
see it as a word that's gotmanipulation.
I see it as having a wordthat's got a lot of fear.
I see it's got a word that,basically, is about the agents
interest, not the vendorsinterest, and I see it having a
(10:13):
lot of Commission breath.
So, at the end of the day, ifwe make the assumption that
every vendor is going to try andget more than market value.
At the beginning of the process,we're going to need to
understand that a real estateagent is going to need to be
very good at the vendormanagement piece, and I want to
run through.
(10:33):
What is it?
Yes, trevor, still suntanned,because that's what three weeks
of sun gets you when you're notin Australia in winter.
So let me run through Numberone, and I want to make it
really clear.
If we had to make thedistinction between an agent
that is a trusted advisor andmake a distinction with an agent
(10:58):
that is the overpricer let'scall it the overpricer
conditioner the two biggestqualities that distinguish them
are intent and transparency.
Intent and transparency.
Let me run through.
If you are the trusted advisoragent in the vendor management
(11:19):
process, because you're going tohave to be really good at
helping vendors accept thereality of the marketplace,
because, depending on what partof Australia you're in and the
kind of property you've got,your vendor is going to have to
be aligned right which is a niceword for price correction or
(11:39):
price reduction by two to 10% tosell based on the data set.
And how are you going to dothat?
Well, firstly, I do think thatevery vendor should be given the
opportunity at the start to gofor a higher figure, and the
reason I say that is we see itas real estate agents every day
(12:00):
of the week Certain propertiesare out of line sales, they'll
go for more, whether it's anauction or it's a private treaty
.
Today, as an auctioneer, I seeproperties that had reserves of
2.4 sell for 2.6, right.
So every property deserves theopportunity right at the start,
(12:22):
for a week or two if it's a forsale to go for the higher figure
.
But every vendor also deservesthe integrity and respect and
the transparency to be told.
If we're not getting that numberearly on, we need to adjust the
campaign and the excite figure,because I've got to let you
(12:45):
know.
If you don't adjust price earlyin a campaign and you adjust at
week three I mean the auctionday is the fourth week the
campaign's over.
So what are you doing?
You're making the propertyattractive.
After all, the buyers have seenit and left.
You've got to do it earlybecause all real estate agents
know peak audience on a propertyis in the first 30 days.
(13:10):
You never get a second chance atmaking a good first impression
and I can tell you what bad realestate agents do is they
overcook properties.
They leave them overpriced.
They leave them overpriced andthen when they adjust, five
weeks later, six weeks later,the market's gone.
They've moved on, people havemoved on.
The listing starts gettingstigmatized and people start
(13:33):
saying, oh, there's somethingwrong with that.
And then what actually happensis you get this dysfunctional
relationship between the agentand the vendor.
Because the agent had gone inand overpromised, the vendor
realizes it's not happening.
So the communication breaksdown and eventually you know if
they're desperate they'll sell,but they'll sell unhappily.
But a lot of the times theywon't sell and then they'll give
(13:55):
it to a second agent and thenthat makes it even worse because
the whole marketplace says, oh,that's been on the market for
months, that's gone from agentto agent.
So let me just run through whatthe trusted advisor, vendor,
managing agent is like.
They're an educator.
They're one with transparency.
What they do is when they sitat a listing presentation, and
(14:17):
that's where the process begins.
At the listing presentationthey'll sit there with an owner
and they'll say to the owner hey, I want to let you know you're
hoping to get $1 million.
I understand that.
I've got to let you know.
That would be a wonderfulnumber to achieve.
I also have a lot of buyersthat have got $1 million and
$1.1 million budgets that I canbring through.
(14:40):
The comparable sales that Ihave with me are indicating that
it's probably under that number.
Here are my three comparables.
They're showing me somewherealong the lines of nine or
thereabouts, but I need you toknow, mr and Mrs Vendor, in the
first instance.
We know that there's anopportunity to go out there to
(15:03):
get a heart buyer and if we getthat heart buyer we normally get
them right at the start.
They're an emotional buyer andthey've been waiting on the
market for the right property.
An example of a heart buyer isthe buyer who property.
An example of a heart buyer isthe buyer who has family, who
lives in the street already andthey want to buy a home in that
(15:23):
street.
I'll paint you a heart buyerthat I had four weeks ago.
House street in Bankstown getssold for top dollar.
I find out the girl that boughtit lived two doors up, was
brought up there, had gotmarried, had moved out, had
separated, had moved back home,didn't want to be back home but
(15:44):
needed to be near her parents tohelp with babysitting and what
have you as a single mum becauseshe was working, so she bought
the house Right.
So, ladies and gentlemen, I'vegot to say to you that's the
heart buyer and I think thatevery property deserves the
opportunity, deserves theopportunity.
Yes, david Gray.
(16:04):
David Gray makes a good point.
Maybe don't overprice to get thelisting to start with 100%,
because I was going to say thesecond.
The second thing that causes somuch of the stock in Australia,
which we said is about 90percent, that sells for lower
than the list price.
The first one is that allvendors want more money.
The second one is that there'salways a Larry the liar out
(16:28):
there in most marketplaces.
And I've got to tell you, larrythe liar goes in there.
They're not the trusted advisor, they're the ones that go in
there.
Oh, I think I've got a buyerthat's going to buy this
property for 1.2.
Sign here right, quote it highto the vendor.
That's what they do.
They buy the listing.
(16:50):
Now I've got to say to you Idespise that, because what
you're doing, if you're a Larrythe liar, you're causing a lot
of damage to the vendors in yourmarketplace, because what
they're doing is they're goingoff thinking to themselves oh,
this person's so confident ofgetting me this price, that they
(17:10):
then go off looking to buytheir own property based on what
that agent has said, they buildtheir hopes up.
Bad scenario this happens theyend up buying a property.
Then they can't sell theirproperty at the figure that the
agent says.
Then that agent you know theone, I'm talking about, the
conditioner what they do isthey've got that vendor signed
(17:34):
up and they know that thatvendor's got to sell because
they're desperate.
So they'll eventually transact.
That vendor will walk away witha soul by sticker, but they're
not going to walk away with asmile and they're not going to
walk away telling theirneighbors they're happy and I've
got to let you know I'll bevery surprised whether that
agent will ever get anyreferrals.
(17:54):
If anything, they'll losebusiness because of the way that
that relationship ends up going.
So the best agents I know arethe ones that go in there.
They will actually go and tryfor a week or two at a higher
figure in case there's a heartbuyer emotional buyer out there,
buys from the heart,emotionally, and then justifies
it logically, like that girlthat I said to you a month ago
(18:17):
at Bankstown.
Now the secret is within moments, and I'm talking about not
months.
I'm talking about weeks, weekone at the latest.
Week two, if you haven't gotgreat engagement and you haven't
sold the property, you've gotto re-look at price, because I
don't care where the property is.
(18:39):
When you adjust the price, themagical buyer appears and I say
adjust it nice and early.
And the reason why is, if youdon't and you adjust it at week
three, week four, you basicallydestroyed the campaign when
you've got the peak buyerbehavior looking at it there.
So just on a high level, what isit that a good, trusted advisor
(19:02):
, vendor, agent does?
Let me run through it.
Number one is that they handleprice at the listing
presentation in the way that Isaid.
They give them hope, but theyalso tell them what the probable
figure is and they set them upbecause it's the unexpected that
lands heaviest.
They set them up that they aregoing to be having a
conversation with themaddressing the feedback and the
(19:22):
buyer intel.
Now if it's an auction propertyand I've got to tell you you
get bombarded with buyers on thefirst week, like, let's assume
you get 50, 60 groups throughand the engagement and the
response to the number thatyou're quoting is good and it's
being accepted, you have a moralobligation then to actually
adjust the price up, not down.
(19:45):
You adjust the price up, sogood real estate agents are
always adjusting, but generallyspeaking, because vendors want
more and because there's alwaysa Larry the liar in the
marketplace, you're generallygoing to be adjusting down after
a couple of weeks.
(20:06):
The other thing that greattrusted advisor real estate
agents do in the marketplace isthat they've got transparency,
and that transparency forms in acommunication plan that is
coupled phone, face-to-facemight be zoom, written report,
whatsapp group and they arebeing bombarded with information
(20:30):
in the moment.
So the vendor is getting Intel,which they didn't have at the
time of listing, and a realestate agent needs to be
bringing that Intel to thevendor because that information
wasn't available at the time ofthe listing but it's been
available after you startedmarketing the property.
So they've got to be good atdoing all those things.
(20:52):
Now let me tell you what thebad agents do, the conditioning
agents do.
They're the ones that just goin there and they turn around
and they say, hey, listen, we'llget you 1.2.
At no stage do they ever sitdown and put down the probable
figures.
So they mislead the owner and,as I said to you before the
distinction, there is intent andlack of transparency, then what
(21:15):
they do is they have a plan.
The conditioning part, themanipulation part, is just go in
there and just give them badnews, bad news, bad news, bad
news.
Wither them away.
Wither them away with the viewthat they eventually will crack.
And sometimes they do becausethey have to sell if they've got
financial stress, or if they'rethey bought elsewhere, or if
(21:39):
there's a family separation orwhat have you.
So, team, when do you adjust Ifyou've gone in with a higher
figure at the start?
Thank you, aaron, it's good tobe back.
Malcolm Quinn, good to see you.
Trust-based advice is groundingyour violence in fact-based
analysis.
That's right.
(21:59):
It's also about knowing yourown data set, knowing your own
ratios.
Feedback should happen straightaway.
I believe the first strategysession should be and some
people call them, you know, setto sell meetings, expectations
meetings.
Your strategy session should beheld very early, after you've
had your first set of buyersthrough, after you've had your
(22:20):
other real estate agents fromyour office that have come
through, so you can be givingthem that feedback.
I think when you're givingfeedback to owners, I hate
agents that are, you know, warmand fuzzy when you're giving
feedback to owners.
I hate agents that are, youknow, warm and fuzzy.
Oh yeah, oh yeah.
No, man, you be clear andconcise.
You be like a doctor.
You say it as it is.
There are too many real estateagents that mix the relationship
(22:43):
between friendship and business.
They are not looking for a newfriend.
When they called you in for anappraisal, they didn't call you
because they were looking forsomeone to hang out with on
Saturdays.
They called you because theywanted someone that was a heavy
hitter, that could get them fromstuck to unstuck.
They had a problem and theyneeded a Panadol.
You're the Panadol and thePanadol is basically being
(23:07):
evidence-based, talking data andbeing clear, and stop trying to
be saving every vendor.
I mean the market's the market,the market's the market.
The market's like a tree.
It's got its own branches.
It thinks the way it thinks.
You are not the message, youare the messenger.
(23:29):
And what I'm saying to you be aclear, concise messenger.
Be a clear, concise messenger.
I mean, the auction day's, the fourth week, the
campaign's over, so what are youdoing?
What's my view of the realestate market at the moment?
It's good.
It's balanced to above balancedmarket, and what we're seeing
is things are selling.
And why is that happening rightnow?
Because we are in the mood ofrate drops.
(00:23):
We are in the mood of ratedrops.
We are in the mood of ratedrops and because we're in the
mood of rate drops, the buyersare coming out there.
And I'm not going to say to youthat there's enormous levels of
stock out there at the reserve,and when I say $200,000 more
(00:50):
than the reserve, these werereserves that were pretty
aggressive because they'd had alot of interest on those
properties.
When I looked at those reserves, I thought they are aggressive
and the owners were prepared tobe flexible on those.
But we are definitely seeinghey, george, good to see you we
are definitely seeing amarketplace where the sentiment
(01:12):
is that rates are coming downand that it's pretty good.
Now I want to let you know thatyesterday I was having a
conversation with a real estatejournalist and it was about the
subject of vendors who have tocorrect price, and what it was
about was why do vendors have tocorrect price?
(01:35):
Why should there be a reductionstrategy right?
If a real estate agent does theright thing, why should a real
estate agent be encouraging avendor to reduce their price,
particularly in a for salecontext?
So let me run through someinteresting statistics.
What percentage of propertiesin Australia do you think sell
(02:04):
for lower than the listed price?
What percentage of propertiesdo you believe according to
CoreLogic RP Data?
I mean, I don't have arelationship financial
relationship with RP Data, but Iuse their app.
I'm not an ambassador.
They are probably the leadingdata company and they've got
(02:28):
some incredible data sets thatyou can look at.
And one of the most unlooked atby real estate agents is called
the vendor price discount errorGood term.
(02:48):
So John Dyer says 95% ofproperties that are listed get
sold for lower than they'relisted.
John, guess what?
You're pretty spot on and thatshouldn't come as a surprise.
So why?
Why, even in a good market, dothe majority of properties 95%,
(03:16):
says John.
The data set that RP Data has,that's a couple of years old,
says it's 75%.
But that doesn't obviouslyinclude properties that are
auctions, because auctions don'thave a list price right.
And then when those propertiesget sold.
You can't work out thevariation, but based on my own
(03:39):
auction business, I have a lookat what percentage of those
properties get sold for morethan what the owner wanted
originally, and I would say itwould be a small minority.
So I would actually say, john,that number of 90% is probably
where it's at.
So think about that concept forone moment.
(04:04):
In Australia, 90% of theproperties that get sold get
sold at a lower figure than whatthe owner was hoping for when
they've listed it.
This data set is available onCoreLogic.
Why does that happen?
So why does it happen?
Why is there a gap between thelist price and the sell price?
(04:28):
Well, let's go through it.
There's two reasons.
There's two reasons.
Reason number one, and the mainreason, is that nearly every
owner will want more for theirhome than what it's worth.
That's a fact, end of story.
Every owner also believes thattheir kid is the best looking
(04:52):
kid in the world and every ownerthinks that their home is worth
more at the start.
That's why real estate agentsexist to help an owner either
get that big hope price or atleast get educated on what
(05:12):
market value is, so that theysell at a fair market price.
So what is the average level ofdiscounting?
What is the average level ofdiscounting?
Roughly 5% across the countryand discounting changes based on
marketplaces.
So when you look at a balancedmarketplace like we have now,
(05:36):
right now we've got a bit of abalanced marketplace and that is
stock comes on, it getsswallowed up in reasonable times
and I've got to say to you,roughly, for a balanced
marketplace, it's around thefour to 6%.
That is the discount level.
(05:57):
When you've got a marketplacethat is a buyer's marketplace
right, when it's great forbuyers and that means that there
is sorry when it's you're right.
When it's a buyer's marketplace, when you've got a lot of stock
(06:19):
, a lot of stock and it's greatfor a buyer, what's the discount
level?
10% plus.
That's why, ladies andgentlemen, you've got to be an
outstanding vendor manager intough marketplaces.
If you're working right it'snot the case for me today right,
(06:47):
it's not the case for me today.
And in a marketplace that is aseller's marketplace, a
marketplace where there ishardly any stock and there's
lots of buyers, that's called aseller's marketplace, that's a
boom.
And when you've got a boom,believe it or not, you still
have a vendor discount becausevendors, even during a boom,
(07:11):
still want to get more.
It's human nature and I have tosay, oh.
By the way, people ask me whatis the biggest discount level
areas?
Now, that's something good tolook at.
A suburb in Townsville calledHeatley is around 11% right.
(07:33):
So when you go around thecountry you have a look at it
and there's some great data sets.
You can get them from sqm, um,rp data, all the companies now
and all the big portals, domain,rea, they've all got uh data
companies.
But I've got to tell you in ifI had to go look at it
(07:54):
nationally.
In summary, in terms ofdiscounts, melbourne has got 17
suburbs that offer discounts 10%plus over.
It's been a very challengingmarket, less so in Sydney and
Brisbane, in Sydney and Brisbane.
(08:17):
And I've got to also let youknow, for those of you that are
sitting there watching thisright now and are saying to
themselves, what is the cheapestarea in Australia to buy a
house?
Well, let me tell you, I'mgoing to give you the three
lowest median prices inAustralia at the moment.
If you want to get into themarket, but you really don't
have a lot, let me run throughthem Rockhampton, geraldton and
(08:41):
Devonport Devonport in Tasmania.
So I've got to say to you it'sso important, it's so important,
it's so important, it's soimportant, um, um and there's a
and there's and there's a.
It's so important that youunderstand whether, at any time,
(09:08):
what marketplace that you'reworking in.
Now what I want to do is gothrough because this is the
conversation I was having withthe journalist yesterday.
I was making the distinctionbetween what an agent that is, a
trusted advisor, house pricemaximizer, agent is Verse.
Let's call it the conditioner,let's call it the agent.
(09:32):
That's not the trusted advisor.
Let me go through what atrusted advisor agent does in
the management process and, bythe way, that was the other
conversation I had with her.
I despise the word condition.
It's a word that I don't use.
(09:53):
You would never have heard meuse that word.
I despise it because when Ithink of the word condition, I
see it as a word that's gotmanipulation.
I see it as having a wordthat's got a lot of fear.
I see it's got a word that,basically, is about the agents
interest, not the vendorsinterest, and I see it having a
(10:13):
lot of Commission breath.
So, at the end of the day, ifwe make the assumption that
every vendor is going to try andget more than market value.
At the beginning of the process,we're going to need to
understand that a real estateagent is going to need to be
very good at the vendormanagement piece, and I want to
run through.
(10:33):
What is it?
Yes, trevor, still suntanned,because that's what three weeks
of sun gets you when you're notin Australia in winter.
So let me run through Numberone, and I want to make it
really clear.
If we had to make thedistinction between an agent
that is a trusted advisor andmake a distinction with an agent
(10:58):
that is the overpricer let'scall it the overpricer
conditioner the two biggestqualities that distinguish them
are intent and transparency.
Intent and transparency.
Let me run through.
If you are the trusted advisoragent in the vendor management
(11:19):
process, because you're going tohave to be really good at
helping vendors accept thereality of the marketplace,
because, depending on what partof Australia you're in and the
kind of property you've got,your vendor is going to have to
be aligned right which is a niceword for price correction or
(11:39):
price reduction by two to 10% tosell based on the data set.
And how are you going to dothat?
Well, firstly, I do think thatevery vendor should be given the
opportunity at the start to gofor a higher figure, and the
reason I say that is we see itas real estate agents every day
(12:00):
of the week Certain propertiesare out of line sales, they'll
go for more, whether it's anauction or it's a private treaty
.
Today, as an auctioneer, I seeproperties that had reserves of
2.4 sell for 2.6, right.
So every property deserves theopportunity right at the start,
(12:22):
for a week or two if it's a forsale to go for the higher figure
.
But every vendor also deservesthe integrity and respect and
the transparency to be told.
If we're not getting that numberearly on, we need to adjust the
campaign and the excite figure,because I've got to let you
(12:45):
know.
If you don't adjust price earlyin a campaign and you adjust at
week three I mean the auctionday is the fourth week the
campaign's over.
So what are you doing?
You're making the propertyattractive.
After all, the buyers have seenit and left.
You've got to do it earlybecause all real estate agents
know peak audience on a propertyis in the first 30 days.
(13:10):
You never get a second chance atmaking a good first impression
and I can tell you what bad realestate agents do is they
overcook properties.
They leave them overpriced.
They leave them overpriced andthen when they adjust, five
weeks later, six weeks later,the market's gone.
They've moved on, people havemoved on.
The listing starts gettingstigmatized and people start
(13:33):
saying, oh, there's somethingwrong with that.
And then what actually happensis you get this dysfunctional
relationship between the agentand the vendor.
Because the agent had gone inand overpromised, the vendor
realizes it's not happening.
So the communication breaksdown and eventually you know if
they're desperate they'll sell,but they'll sell unhappily.
But a lot of the times theywon't sell and then they'll give
(13:55):
it to a second agent and thenthat makes it even worse because
the whole marketplace says, oh,that's been on the market for
months, that's gone from agentto agent.
So let me just run through whatthe trusted advisor, vendor,
managing agent is like.
They're an educator.
They're one with transparency.
What they do is when they sitat a listing presentation, and
(14:17):
that's where the process begins.
At the listing presentationthey'll sit there with an owner
and they'll say to the owner hey, I want to let you know you're
hoping to get $1 million.
I understand that.
I've got to let you know.
That would be a wonderfulnumber to achieve.
I also have a lot of buyersthat have got $1 million and
$1.1 million budgets that I canbring through.
(14:40):
The comparable sales that Ihave with me are indicating that
it's probably under that number.
Here are my three comparables.
They're showing me somewherealong the lines of nine or
thereabouts, but I need you toknow, mr and Mrs Vendor, in the
first instance.
We know that there's anopportunity to go out there to
(15:03):
get a heart buyer and if we getthat heart buyer we normally get
them right at the start.
They're an emotional buyer andthey've been waiting on the
market for the right property.
An example of a heart buyer isthe buyer who property.
An example of a heart buyer isthe buyer who has family, who
lives in the street already andthey want to buy a home in that
(15:23):
street.
I'll paint you a heart buyerthat I had four weeks ago.
House street in Bankstown getssold for top dollar.
I find out the girl that boughtit lived two doors up, was
brought up there, had gotmarried, had moved out, had
separated, had moved back home,didn't want to be back home but
(15:44):
needed to be near her parents tohelp with babysitting and what
have you as a single mum becauseshe was working, so she bought
the house Right.
So, ladies and gentlemen, I'vegot to say to you that's the
heart buyer and I think thatevery property deserves the
opportunity, deserves theopportunity.
Yes, david Gray.
(16:04):
David Gray makes a good point.
Maybe don't overprice to get thelisting to start with 100%,
because I was going to say thesecond.
The second thing that causes somuch of the stock in Australia,
which we said is about 90percent, that sells for lower
than the list price.
The first one is that allvendors want more money.
The second one is that there'salways a Larry the liar out
(16:28):
there in most marketplaces.
And I've got to tell you, larrythe liar goes in there.
They're not the trusted advisor, they're the ones that go in
there.
Oh, I think I've got a buyerthat's going to buy this
property for 1.2.
Sign here right, quote it highto the vendor.
That's what they do.
They buy the listing.
(16:50):
Now I've got to say to you Idespise that, because what
you're doing, if you're a Larrythe liar, you're causing a lot
of damage to the vendors in yourmarketplace, because what
they're doing is they're goingoff thinking to themselves oh,
this person's so confident ofgetting me this price, that they
(17:10):
then go off looking to buytheir own property based on what
that agent has said, they buildtheir hopes up.
Bad scenario this happens theyend up buying a property.
Then they can't sell theirproperty at the figure that the
agent says.
Then that agent you know theone, I'm talking about, the
conditioner what they do isthey've got that vendor signed
(17:34):
up and they know that thatvendor's got to sell because
they're desperate.
So they'll eventually transact.
That vendor will walk away witha soul by sticker, but they're
not going to walk away with asmile and they're not going to
walk away telling theirneighbors they're happy and I've
got to let you know I'll bevery surprised whether that
agent will ever get anyreferrals.
(17:54):
If anything, they'll losebusiness because of the way that
that relationship ends up going.
So the best agents I know arethe ones that go in there.
They will actually go and tryfor a week or two at a higher
figure in case there's a heartbuyer emotional buyer out there,
buys from the heart,emotionally, and then justifies
it logically, like that girlthat I said to you a month ago
(18:17):
at Bankstown.
Now the secret is within moments, and I'm talking about not
months.
I'm talking about weeks, weekone at the latest.
Week two, if you haven't gotgreat engagement and you haven't
sold the property, you've gotto re-look at price, because I
don't care where the property is.
(18:39):
When you adjust the price, themagical buyer appears and I say
adjust it nice and early.
And the reason why is, if youdon't and you adjust it at week
three, week four, you basicallydestroyed the campaign when
you've got the peak buyerbehavior looking at it there.
So just on a high level, what isit that a good, trusted advisor
(19:02):
, vendor, agent does?
Let me run through it.
Number one is that they handleprice at the listing
presentation in the way that Isaid.
They give them hope, but theyalso tell them what the probable
figure is and they set them upbecause it's the unexpected that
lands heaviest.
They set them up that they aregoing to be having a
conversation with themaddressing the feedback and the
(19:22):
buyer intel.
Now if it's an auction propertyand I've got to tell you you
get bombarded with buyers on thefirst week, like, let's assume
you get 50, 60 groups throughand the engagement and the
response to the number thatyou're quoting is good and it's
being accepted, you have a moralobligation then to actually
adjust the price up, not down.
(19:45):
You adjust the price up, sogood real estate agents are
always adjusting, but generallyspeaking, because vendors want
more and because there's alwaysa Larry the liar in the
marketplace, you're generallygoing to be adjusting down after
a couple of weeks.
(20:06):
The other thing that greattrusted advisor real estate
agents do in the marketplace isthat they've got transparency,
and that transparency forms in acommunication plan that is
coupled phone, face-to-facemight be zoom, written report,
whatsapp group and they arebeing bombarded with information
(20:30):
in the moment.
So the vendor is getting Intel,which they didn't have at the
time of listing, and a realestate agent needs to be
bringing that Intel to thevendor because that information
wasn't available at the time ofthe listing but it's been
available after you startedmarketing the property.
So they've got to be good atdoing all those things.
(20:52):
Now let me tell you what thebad agents do, the conditioning
agents do.
They're the ones that just goin there and they turn around
and they say, hey, listen, we'llget you 1.2.
At no stage do they ever sitdown and put down the probable
figures.
So they mislead the owner and,as I said to you before the
distinction, there is intent andlack of transparency, then what
(21:15):
they do is they have a plan.
The conditioning part, themanipulation part, is just go in
there and just give them badnews, bad news, bad news, bad
news.
Wither them away.
Wither them away with the viewthat they eventually will crack.
And sometimes they do becausethey have to sell if they've got
financial stress, or if they'rethey bought elsewhere, or if
(21:39):
there's a family separation orwhat have you.
So, team, when do you adjust Ifyou've gone in with a higher
figure at the start?
Thank you, aaron, it's good tobe back.
Malcolm Quinn, good to see you.
Trust-based advice is groundingyour violence in fact-based
analysis.
That's right.
(21:59):
It's also about knowing yourown data set, knowing your own
ratios.
Feedback should happen straightaway.
I believe the first strategysession should be and some
people call them, you know, setto sell meetings, expectations
meetings.
Your strategy session should beheld very early, after you've
had your first set of buyersthrough, after you've had your
(22:20):
other real estate agents fromyour office that have come
through, so you can be givingthem that feedback.
I think when you're givingfeedback to owners, I hate
agents that are, you know, warmand fuzzy when you're giving
feedback to owners.
I hate agents that are, youknow, warm and fuzzy.
Oh yeah, oh yeah.
No, man, you be clear andconcise.
You be like a doctor.
You say it as it is.
There are too many real estateagents that mix the relationship
(22:43):
between friendship and business.
They are not looking for a newfriend.
When they called you in for anappraisal, they didn't call you
because they were looking forsomeone to hang out with on
Saturdays.
They called you because theywanted someone that was a heavy
hitter, that could get them fromstuck to unstuck.
They had a problem and theyneeded a Panadol.
You're the Panadol and thePanadol is basically being
(23:07):
evidence-based, talking data andbeing clear, and stop trying to
be saving every vendor.
I mean the market's the market,the market's the market.
The market's like a tree.
It's got its own branches.
It thinks the way it thinks.
You are not the message, youare the messenger.
(23:29):
And what I'm saying to you be aclear, concise messenger.
Be a clear, concise messenger.
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