March 10, 2025 • 23 mins
Uncover the top 10 mistakes real estate agents make—and how to avoid them. From overquoting and pricing transparency to staying connected with past clients, we dive into the key strategies that drive long-term success.
This episode blends storytelling with practical insights, covering smart delegation, authentic customer service, and the right way to use social media. Whether you're a seasoned agent or just starting out, this conversation is packed with actionable advice to help you thrive in the industry.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Tom Panos (00:03):
Tom Panos, john McGrath, with Troy Malcolm
injured.
Today he starts off round oneof the season.
Actually, we've been going fora few weeks but, john, I've got
to tell you I was in.
Where was I?
I was in New Zealand, that'sright.
I was in New Zealand with thenumber one parkour agent in New
Zealand and he said on a big Q&Ahe says I really love MDA, he
(00:28):
goes, I binge on it and he goes.
I learned how to list and sellreal estate and I've learned a
little bit about rugby league,which I had no idea about.
That sport, that's what heactually said.
That's Diego, he goes.
I had no idea about what thatsport's all about, but he goes
through.
Million Dollar Agent.
I have no idea about what thatsport's all about, but he goes
through million-dollar agent.
I sort of get a drift of what'sgoing on.
John McGrath (00:48):
So, john, I have to tell you, diego, for
Rabbitohs and Roosters andTigers followers, it's going to
be a very long year ahead, Isuspect.
Tom Panos (00:57):
Well, I have to say I was very surprised at South
Sydney in their first game.
I think they over-exceeded whatwas expected of them.
John McGrath (01:08):
I reckon they fluked a win.
Tommy, I think you're beingvery generous, but let's hope
you're right, let's hope it wasa well-deserved win.
But I think it's a long seasonto go, but it's fun just talking
about it.
We get lots of good feedback aswell, Troy and I, which is nice
when people kind of say thingslike oh, you know, you helped me
(01:28):
turn my career around and I wasthinking of getting out of real
estate and you know I learnedsome stuff.
That's what we live every day.
To do with this podcast is givepeople takeaway stuff that's
straight talk we're not here tobullshit anyone, we're not here
to sugarcoat it and stuff thatthey can take out to their next
appointment or tomorrow in thefield.
So you know, that's what we'regoing to try and do today as we
unpack.
Tom Panos (01:50):
Dumb and dumber, john .
I came up with this topic onthe weekend when I was
auctioning on the weekend and abuyer said something to me.
He goes.
The agent said to me, at 1.5 wewould be really competitive.
Yep, me, at 1.5, we would bereally competitive.
Anyway, bottom line is first bidwas about 300 grand more than
(02:11):
that and we hear these storiesall the time in real estate and
I've got to also say there'sunderquoting and there's also
results that go off.
I'm not saying that everyresult that sells really higher
than what a buyer was preparedto pay does not mean it's
underquoting.
There are instances where thevendor was told I think it's $2
(02:31):
million, it sells for $2.5million, the reserve was $2
million and that is notunderquoting, right.
But when we've got situationswhere we see like this guy said
to me something interesting, hegoes.
But what a dumb thing to do.
And I go what do you mean?
And he goes, if he's going totell us 1.5 and then come to me
during the auction and say, doyou want to kick it off at 1.7,
(02:55):
1.8, like that's a dumb thing todo.
And I thought about it.
It is a dumb thing to do, isn'tit?
Because you're talking to ahuman being, telling him one
thing and then, two weeks later,you're telling him another
thing.
John McGrath (03:06):
Well as those that follow MDA would know from you
and I, this is at the top of ourtree, so I'm glad you've raised
it early on.
Overquoting with vendors andunderquoting with buyers has to
be the dumbest, mosttime-wasting, quickest way to
just desecrate your own personalbrand.
That I know of.
Like you know, really simple Dothe research before you arrive.
(03:29):
Have a good conversation withthe owner, try and find out what
they're expecting.
You give some comparables tohave a good discussion, but
never take away their hope thatmaybe it'll go for a bit more.
And then you just quote thesame comparables to buyers and
sellers.
Like it's not that hard, andyet the industry falls prey to.
(03:49):
You know who can tell thebiggest lie?
How do I get away?
And it's just frustrating withbuyers.
The other thing, tom, which is avariation of this, which is
kind of almost just as bad youstart off quoting 1.5 and you
thought that was worth 1.5 to1.6, so let's just say 1.5, 1.6
is the range.
Then you get 27 contracts outand you have people saying you
(04:10):
know, would they take 1.8 beforeauction or whatever, and you
never adjust the conversationyou have with the buyers, those
buyers that saw it early on thatwere led to believe 1.5, 1.5.50
, you'll be in the money ormaybe buying it.
They need to be updated.
You know I had more interestthan I expected, tom.
I've got to be frank.
Up front we thought 1.5 plus Inow think to be realistic.
(04:31):
You're going to have to be inthe 1.6 to 1.750 range.
But if you're in that pricerange, you know this is a
property that's in hot demand,as it should be.
You can have a conversation butyou just update people.
You don't want someone turningup to an auction with an
expectation of $1,550 when youknow the bidding is going to go
to $2 million.
Tom Panos (04:48):
It just doesn't make any sense.
So, john, after thisconversation I had with the
buyer, I actually confronted theagent as I was leaving in my
car, putting the auction boardin my car, and I had a chat with
him and he goes to me oh Tom,it's easier said as a trainer
than what it is in real life.
And I said to him hey, listen,you know I'm the first person
that's going to tell you that notraining course will survive
collision with reality.
(05:09):
But he goes to me.
You've got to understand mostowners want more for their home
in week one than the reservethat you said in week four.
And he said and he actuallyused these words he goes and
most owners think that theirkids better looking than.
And I said I probably don'tdispute with what you've just
said, but why wouldn't you justspeak to a buyer and say listen,
(05:30):
like every owner, my owners arehoping to get as much as they
can and like every owner, I saiduse those words.
They think they've got the bestlooking kid.
However, I've got to tell youthey have to sell the property
and I've told them that thecomparables that they're
comparing their property shouldbe about this.
And in light of all of that.
I suggest that you come to theauction and he goes oh, you
(05:51):
could do it that way.
On that one.
I said you could pretty much doit on all properties.
I think we spoke about it onMDA ages ago, john, where we
said why wouldn't you just sayto them here's my agency
agreement.
This is what I've told themright?
(06:11):
This is what I've told themthere.
It's transparent.
But we all agree the first dumband dumber on our MDA podcast
for today and we're on the samepage, john is that over-quoting
to get the listing, thenunder-quoting to the buyers
thinking that it's all going towork out.
So let's assume we've done twothere, we've got eight to go and
I'll move over to you.
John McGrath (06:27):
John, I reckon another one talking, not
listening.
You know agents think oh, youknow, gift of the gab, I've got
to talk, I've got to impressthem.
The more things I say, the moreimpressed they're going to be,
when in fact the reality is it'sthe opposite.
The better you listen, the morespace you provide them to tell
their story, express theirconcerns, their hopes, their
goals, and then, with followingquestions, get deeper and deeper
(06:50):
into the conversation, thebetter rapport you're going to
have then you're going to be.
Pete Foote told us many yearsago.
He said design a game you can'tlose.
So here's the problem.
Most agents, they go into alisting presentation, they just
talk, talk, talk, talk, talk andthey're hoping that whatever
they say somewhere, if they sayenough things, it's going to hit
the mark, whereas in actualfact, if you walk in, you say,
(07:12):
tom, if we had a really goodmeeting in the next 60 minutes,
what would be the outcome andwhat are the key things that you
would like to extract from thismeeting?
And then this is just an exampleand you can say a number of
things, but that'd be not a badstart.
And then they say, well, Ireally want to know x, y and z
(07:32):
and what's the benefit of usingyou.
And then if then you're giventhe agenda that they want to
talk to, not the stuff that youthink you might want to talk to.
So just remember 75 of ameeting with a vendor and and a
buyer, to be honest with you,probably should be listening and
25% might be talking, but eventhe talking is probably going to
involve a lot of questionasking.
So that'd be my number two Dumbthing is to talk too much.
Tom Panos (07:54):
Yeah.
So on that point, john,everyone listening when you
listen, you learn.
When you make statements, youget judged.
They're the two big differencesbetween asking questions and
making statements.
So we're up to number four,john.
My fourth dumb and dumber thingthat agents do is the final
(08:18):
inspection before settlement.
I want to talk about that verybriefly.
So what actually happens is youdo all this incredible work and
then you realise, oh, 3 o'clock, I've got to be at 27 Johnson
Road, final inspection beforesettlement.
So you send someone over, theyget there late, they're mucking
around with the keys to get inand what actually happens is the
final, last experience, thefinal touchpoint.
(08:40):
You're allowing that buyer togo into the new street, meet all
the new neighbours and they'recoming off.
A bad final touch point.
If there was ever a time toactually make them a client for
life, it's that final inspectionbefore settlement.
In fact, john, I know plenty ofagents who use the final
inspection before settlementmore like a listing presentation
(09:03):
.
They basically say you are nowgoing to be a client for life.
Here is a welcome pack, here isa $100 voucher to have at.
You are now going to be aclient for life.
Here is a welcome pack.
Here is a $100 voucher to haveat Grasshopper Cafe tomorrow
morning to have breakfast.
By the way, I'm going to lockyou in and give you a health
update on your asset a year fromnow.
I know you're not selling.
I'm going to pop in and justtell you whether it's gone up,
how much it has gone up.
(09:24):
If you did 50 deals, you'velocked in 50 pop-ins for the
following year.
So I think treating the finalinspection settlement as trivial
is the next dumb thing peopledo.
John McGrath (09:34):
John Tommy, I'll just add a little level of
intensity to that.
A week before settlement, daybefore settlement, day of
settlement, a week after that'sfour touch points.
They take a combination, atotal, unless it involves a
visit points.
They take a combination, atotal, unless it involves a
visit.
But on the phone, a total offour calls which is like eight
minutes, maybe six, maybe five.
It's a minute to two per call.
(09:55):
Just checking you're.
You're on track with everythingfor next week.
Do you have any questions?
Just checking you knoweverything went okay today.
You settled in.
Day after is everything okay?
And then, a week later,anything I can do for you,
that's five minutes invested tocreate a client for life.
So that's the next one.
My one next one is no price.
You tell me you and I hear thisall the time and I exclude
(10:19):
auctions in queensland from thisremark because I know they're
banned.
Um agents say I want them tocall me, I want to get their
details, I want them to call meso I can discuss the price.
Now, most of the time theydon't call you.
Rea tells us 72% of people, ifthere's no price, they go past
the ad, don't even click on it.
A lot of other people.
(10:41):
Look at the ad, click on it.
If you've done your job right,they probably think it's or they
could think it's out of theirprice range.
Make it easy to buy from you.
Please put a price or a pricerange or whatever's allowed in
your region for the type ofproperty you're doing.
And nine out of 10, eight outof 10 properties I'm going to
say deserve a price.
(11:01):
Two out of 10 are genuinelydifficult, genuinely difficult
to price and you might want tohave that conversation with the
owner, but please don't deludeyourself and believe your own
lies that you're not putting aprice.
Most people why don't they puttheir price?
Because they're embarrassed ofthe price, because it's above
market.
It can't be justified andthey're embarrassed and they
(11:22):
don't want to talk to the buyers.
You need to have thatconversation with the vendor and
say, hey, we need to startfishing where the fish are,
because right now we're throwingthe line in and there's no one
nibbling.
Tom Panos (11:32):
So, john, on that point I had a New Zealand real
estate client that was tellingme that they're just not getting
like.
New Zealand has been achallenging market, but they
were telling me we're just notgetting any buyer inquiry.
Then I said to them you know,are you optional or for sale?
They said, oh, we do buynegotiation.
And I said, oh, what price doyou put on by negotiation,
thinking that they'd be arranged?
They said, oh, we put no price.
(11:53):
And I said, well, what's theinquiry level?
Like they go, we hardly get anyinquiry.
And I said, well, listen, if Iwalk through David Jones or
Myers and everything I look atdoesn't have a price, I'm
walking out of that store andgoing somewhere.
There's a price.
Realestatecom, whose data isthe most comprehensive when it
comes to behaviour, is sayingthat the engagement on no price
(12:16):
listings on their site issignificantly lower than those
that have got a price.
I was talking to you about carsthe other day, john, so it's
really interesting when you goto the car manufacturers'
websites.
They are so transparent nowwith their pricing, like you
basically build the car and itgives you to the cent on what
it's going to cost you.
(12:37):
We live in a world whether it'stravel, whether it's
automobiles, whatever peoplewant transparency.
It's not like it was in the 60sand 70s, where you get the
ethical bride, get them to callyou.
The salesperson will talk toyou.
They won't have a number thatthey're locked in on.
We now live in a very differentworld, where people like
(12:57):
certainty, so-.
John McGrath (12:59):
And Tommy on that and I've used this slide in
presentations you and I've donetogether.
There's a clothing company inthe UK called Asket A-S-K-E-T.
Not only do they tell you theprice, of course, they actually
tell you how much it costs themto make, manufacture and
transport the garment and theyshow you how much profit they're
making because they believe inradical transparency.
So if you've got, on one hand,a clothing retailer who's
(13:23):
actually telling you what theirmargin is and you've got another
hand in our industry theequivalent of someone not
putting the price on thegarments at all, saying oh, they
should contact me, and thenwhen they contact, just rubbish
can't be done.
Next one I've got because Iknow I've only got a few more to
go not staying in touch withpast clients yes, is the most
fun, easiest, lowest hanging,most rewarding fruit you're ever
(13:46):
going to get in the industry.
If you've sold 100 houses inyour life and you can multiply
whatever number, maybe it's1,000 for you, but 100
properties means you have 200people a buyer and a seller for
each transaction that you havethe opportunity to stay in touch
, check in on, see that they'reokay, give them a bit of an
update on what's happening inthe immediate market and stay
(14:08):
top of mind because you don'tknow when their circumstances
are going to change.
So it's an easy, incrediblyimportant, one of the most
neglected of activities of alland people.
I talk to great agents and I saywhat's your nurture marking,
what's your frequency?
Oh no, I've got to admit I'mnot very good at that.
(14:28):
I mean and I'm saying, guys,you are losing opportunity after
opportunity.
So don't think that selling aproperty, doing a great job and
then hoping in seven years timeor five years or three or 10,
they're going to think of you.
You must earn the right tocontinue to be their agent for
life and not only for thatparticular transaction.
But you don't know who elsethey might know, could be a
(14:50):
sibling, could be a friend,could be a work colleague is
thinking of selling.
So when the conversation comesup in the workplace or around
the Christmas table or whatever,you want to be top of mind when
they start talking aboutselling.
Oh, you've got to ring Tom.
He looked after me.
In fact he rang me a couple ofweeks ago.
(15:13):
He's the man.
Tom Panos (15:13):
Let me introduce you.
That's what you need from yourraving fans.
So I think that's our seventhor eighth.
Yeah.
So, john, on that, I just wanteveryone listening to remember
these words recency trumpsloyalty.
I've even got a very closefriend of mine, an agent, who
was whinging away saying ohTommy, it's not like the old
days, there's no more loyalty.
And I said what do you mean bythat?
He goes oh, mate, I sold thesepeople their house.
(15:33):
You know, they never even gaveme a looky.
And I said, mate, likeseriously, when you sold them
the house, they did not sign anagency agreement saying that
they're obligated for the restof their life to give it to you
because you sold them a house.
Right, and all I'm going to say,john, anyone that's listening,
the hardest call to make is thefirst call if you haven't been
(15:55):
talking to anyone for five, 10years, and I reckon a really
good softener is hey, it's TomPanos here.
Firstly, I want to apologize.
I should have been in touchearlier.
Loves, a, sorry, it'll get youback in there.
Start the conversation and Ithink you're spot on.
Why go out door knocking,interrupting strangers?
(16:16):
You don't want to talk to you,when all you got to do is make a
phone call to that person thatlikes you already, but for
whatever reason, you just stopchatting to them.
John, is it my turn or yourturn?
Next, my turn over to you?
Okay, so the next one is theydon't delegate, they don't
delegate, and sometimes it'seven.
I saw an agent who, in the worldof Zoom and I use my studio at
(16:39):
Haberfield often and so you knowwhen you're driving around
about two suburbs away, I'mdriving one day and I see an
agent in the middle of the daymowing the lawn right, I put my
window down.
I said why would you do thattoday?
And he goes, mate, he goes.
You know, on a Sunday you'retotally wrecked.
(17:00):
You know I've got to do it.
I said, mate, jim's lowing $50,mate, $50.
They'll do it and you don'thave to do it.
But that's one extremeno-transcript and I often see it
(17:33):
being out and about.
I hear people say hey, tommy, Iused to be in real estate.
When you sit back and ask themwhat happened, often they just
didn't know how to manage freetime, they just tried to do
everything.
John McGrath (17:47):
Yeah, tommy, I agree, and I'll comment on that.
Then I'll give you my last one.
I was coaching one of our teamthe other day and they're a very
, very successful team and I washaving a coaching session with
them and they were just tellingme how flat out they were, which
they are.
They really write a couple ofmillions.
So extraordinary, healthy teamand they're on the upward
trajectory.
And they were telling me abouteverything they're doing and I
said have you ever consideredgetting a housekeeper?
(18:08):
And they looked at me you know,not strangely, but surprisingly
is probably the best adjectiveand you know I said well, look,
you know I've got a greathousekeeper.
She's $32.50 an hour.
I don't know if that's too muchor too little, but it's more
than I'm happy to pay that toget someone to look after the
home, to look after the dogwalking, to make sure the fridge
(18:29):
is stocked and all the thingsthat need to be done.
So, yeah, the other thing isright at the end of your street,
almost Crystal Car Wash, Ithink.
I have an annual $2,000subscription, which means any
day of the week, or every day ofthe week if I wanted to, I
drive the car in and sevenminutes later it's washed inside
and out and I'm on my way againwith a clean car.
So you know it is very easy toleverage with a team.
(18:51):
You can get virtual assistance.
You and I spoke at Wingman theother day, which is a great
event.
You know they're terrific athelping you if you need an
offshore solution which is agreat event.
You know they're terrific athelping you if you need an
offshore solution.
Or you know car washers,housekeepers, dog walkers,
whatever it is Nowadays, youknow you can get the help you
need to leverage what you'rebest at, which is dollar
(19:12):
productive activities.
Last one for me three letters.
I hate them.
I hate the word that they formego.
This industry has to, once andfor all, stop thinking we are
God's gift to anything and wehave to start seeing ourselves
as servants of the buying andselling public who are here to
make the process of buying andselling enjoyable, transparent,
(19:37):
profitable, helpful, easy all ofthose things and stop thinking
that we are God's gift andportraying ourselves.
And yeah, social media isfantastic for educating people,
for giving insights that peoplewouldn't have got elsewhere, for
promoting properties, even forupdating people on good sales
you've made.
But please get rid of the ego.
(20:00):
It's not about you.
Asese witherspoon said, thinkabout the person that's reading
it.
Don't think about yourself andwhat you want to get.
Think about what they want toget, and they certainly don't
want to hear about how manymillions of dollars you've made
this month or whatever.
That's just really quite, quite, uh nauseating when I see these
agents like throwing out eightmillion this year, four million
(20:23):
this month or whatever.
It's just like.
Come on, guys, seriously.
There are people out there.
You must be tone deaf.
There are people who arefinding it hard to pay this
month's week or mortgage, weeklyrental mortgage, and you're
running out there.
Not great thing you're doingwell.
I applaud agents that do well.
Please don't spread it acrosssocial media because it is
(20:43):
offensive, it's not attractiveto anyone that you're selling to
and, in fact, it's really tonedeaf in this current environment
of high cost of living.
Tom Panos (20:54):
John so well said and on that ego one, make this the
last one because it's aligned toit.
I actually think there's agroup of real estate agents in
Australia.
Their business would actuallygo up doing nothing else but
deleting their social mediaaccounts, because their social
media accounts are actuallyharming their business, not
helping their business.
(21:15):
I mean, that's the fundamentalreason, john, why if you read
the comments, if you read thecomments of what people say on
social media about real estateagents, you begin to realise why
they think that way.
Right, when they're seeingagents, you know, pump out the
affluence, right.
So if it's not affluence, it'sreconfirming how good you are.
(21:38):
It's this classic thing.
We're not seeing dentists puthashtag 10 root canals today.
Doctors hashtag best Medicaremonth I've ever had in my life.
You're not even seeing plumberssaying hashtag you know 10
sewer canals today or whatevertheir KPI is.
And also, you know there's abunch of real estate agents that
(22:00):
go off and like these fakerenter crowds that's happening a
lot now Thinking to yourself oh, no one knows.
I mean, they do know, they cansee it, it's obvious.
They look at likes there's nocomments, there's no engagements
and it looks like it's a rentercrowd.
John McGrath (22:16):
Right?
They tell me some of theseagents are very big in Brazilzil
.
Apparently they have huge, hugefollowings in brazil, tens of
thousands of followers frombrazil there's only one problem,
john.
Tom Panos (22:27):
I just can't see anyone listing their home from
brazil in wulara today.
Right, as they say, sometimesbeing famous with that renter
crowd is like being rich inmonopoly.
It doesn't matter, it's allfake money, john, dumb and
dumber.
But the good news is is everyone of these things can be fixed
with no money and a simpledecision.
(22:50):
Hey, I'm going to do itdifferently.
John, great to see you onceagain.
We're going to have Troyjoining us next week.
To all our listeners, I want tolet you know it is a very big
real estate period, some bigsales going around the place.
In fact, tringali just sent mea message.
He sent one around the cornerat 6.12 today, 6.12.
(23:14):
You're on the ball, john.
He's on the ball 6.1, yeah.
So, john, good to see you, Iwill see you next week.
John McGrath (23:21):
Thanks, tommy, have a good.
Tom Panos, john McGrath, with Troy Malcolm
injured.
Today he starts off round oneof the season.
Actually, we've been going fora few weeks but, john, I've got
to tell you I was in.
Where was I?
I was in New Zealand, that'sright.
I was in New Zealand with thenumber one parkour agent in New
Zealand and he said on a big Q&Ahe says I really love MDA, he
(00:28):
goes, I binge on it and he goes.
I learned how to list and sellreal estate and I've learned a
little bit about rugby league,which I had no idea about.
That sport, that's what heactually said.
That's Diego, he goes.
I had no idea about what thatsport's all about, but he goes
through.
Million Dollar Agent.
I have no idea about what thatsport's all about, but he goes
through million-dollar agent.
I sort of get a drift of what'sgoing on.
John McGrath (00:48):
So, john, I have to tell you, diego, for
Rabbitohs and Roosters andTigers followers, it's going to
be a very long year ahead, Isuspect.
Tom Panos (00:57):
Well, I have to say I was very surprised at South
Sydney in their first game.
I think they over-exceeded whatwas expected of them.
John McGrath (01:08):
I reckon they fluked a win.
Tommy, I think you're beingvery generous, but let's hope
you're right, let's hope it wasa well-deserved win.
But I think it's a long seasonto go, but it's fun just talking
about it.
We get lots of good feedback aswell, Troy and I, which is nice
when people kind of say thingslike oh, you know, you helped me
(01:28):
turn my career around and I wasthinking of getting out of real
estate and you know I learnedsome stuff.
That's what we live every day.
To do with this podcast is givepeople takeaway stuff that's
straight talk we're not here tobullshit anyone, we're not here
to sugarcoat it and stuff thatthey can take out to their next
appointment or tomorrow in thefield.
So you know, that's what we'regoing to try and do today as we
unpack.
Tom Panos (01:50):
Dumb and dumber, john .
I came up with this topic onthe weekend when I was
auctioning on the weekend and abuyer said something to me.
He goes.
The agent said to me, at 1.5 wewould be really competitive.
Yep, me, at 1.5, we would bereally competitive.
Anyway, bottom line is first bidwas about 300 grand more than
(02:11):
that and we hear these storiesall the time in real estate and
I've got to also say there'sunderquoting and there's also
results that go off.
I'm not saying that everyresult that sells really higher
than what a buyer was preparedto pay does not mean it's
underquoting.
There are instances where thevendor was told I think it's $2
(02:31):
million, it sells for $2.5million, the reserve was $2
million and that is notunderquoting, right.
But when we've got situationswhere we see like this guy said
to me something interesting, hegoes.
But what a dumb thing to do.
And I go what do you mean?
And he goes, if he's going totell us 1.5 and then come to me
during the auction and say, doyou want to kick it off at 1.7,
(02:55):
1.8, like that's a dumb thing todo.
And I thought about it.
It is a dumb thing to do, isn'tit?
Because you're talking to ahuman being, telling him one
thing and then, two weeks later,you're telling him another
thing.
John McGrath (03:06):
Well as those that follow MDA would know from you
and I, this is at the top of ourtree, so I'm glad you've raised
it early on.
Overquoting with vendors andunderquoting with buyers has to
be the dumbest, mosttime-wasting, quickest way to
just desecrate your own personalbrand.
That I know of.
Like you know, really simple Dothe research before you arrive.
(03:29):
Have a good conversation withthe owner, try and find out what
they're expecting.
You give some comparables tohave a good discussion, but
never take away their hope thatmaybe it'll go for a bit more.
And then you just quote thesame comparables to buyers and
sellers.
Like it's not that hard, andyet the industry falls prey to.
(03:49):
You know who can tell thebiggest lie?
How do I get away?
And it's just frustrating withbuyers.
The other thing, tom, which is avariation of this, which is
kind of almost just as bad youstart off quoting 1.5 and you
thought that was worth 1.5 to1.6, so let's just say 1.5, 1.6
is the range.
Then you get 27 contracts outand you have people saying you
(04:10):
know, would they take 1.8 beforeauction or whatever, and you
never adjust the conversationyou have with the buyers, those
buyers that saw it early on thatwere led to believe 1.5, 1.5.50
, you'll be in the money ormaybe buying it.
They need to be updated.
You know I had more interestthan I expected, tom.
I've got to be frank.
Up front we thought 1.5 plus Inow think to be realistic.
(04:31):
You're going to have to be inthe 1.6 to 1.750 range.
But if you're in that pricerange, you know this is a
property that's in hot demand,as it should be.
You can have a conversation butyou just update people.
You don't want someone turningup to an auction with an
expectation of $1,550 when youknow the bidding is going to go
to $2 million.
Tom Panos (04:48):
It just doesn't make any sense.
So, john, after thisconversation I had with the
buyer, I actually confronted theagent as I was leaving in my
car, putting the auction boardin my car, and I had a chat with
him and he goes to me oh Tom,it's easier said as a trainer
than what it is in real life.
And I said to him hey, listen,you know I'm the first person
that's going to tell you that notraining course will survive
collision with reality.
(05:09):
But he goes to me.
You've got to understand mostowners want more for their home
in week one than the reservethat you said in week four.
And he said and he actuallyused these words he goes and
most owners think that theirkids better looking than.
And I said I probably don'tdispute with what you've just
said, but why wouldn't you justspeak to a buyer and say listen,
(05:30):
like every owner, my owners arehoping to get as much as they
can and like every owner, I saiduse those words.
They think they've got the bestlooking kid.
However, I've got to tell youthey have to sell the property
and I've told them that thecomparables that they're
comparing their property shouldbe about this.
And in light of all of that.
I suggest that you come to theauction and he goes oh, you
(05:51):
could do it that way.
On that one.
I said you could pretty much doit on all properties.
I think we spoke about it onMDA ages ago, john, where we
said why wouldn't you just sayto them here's my agency
agreement.
This is what I've told themright?
(06:11):
This is what I've told themthere.
It's transparent.
But we all agree the first dumband dumber on our MDA podcast
for today and we're on the samepage, john is that over-quoting
to get the listing, thenunder-quoting to the buyers
thinking that it's all going towork out.
So let's assume we've done twothere, we've got eight to go and
I'll move over to you.
John McGrath (06:27):
John, I reckon another one talking, not
listening.
You know agents think oh, youknow, gift of the gab, I've got
to talk, I've got to impressthem.
The more things I say, the moreimpressed they're going to be,
when in fact the reality is it'sthe opposite.
The better you listen, the morespace you provide them to tell
their story, express theirconcerns, their hopes, their
goals, and then, with followingquestions, get deeper and deeper
(06:50):
into the conversation, thebetter rapport you're going to
have then you're going to be.
Pete Foote told us many yearsago.
He said design a game you can'tlose.
So here's the problem.
Most agents, they go into alisting presentation, they just
talk, talk, talk, talk, talk andthey're hoping that whatever
they say somewhere, if they sayenough things, it's going to hit
the mark, whereas in actualfact, if you walk in, you say,
(07:12):
tom, if we had a really goodmeeting in the next 60 minutes,
what would be the outcome andwhat are the key things that you
would like to extract from thismeeting?
And then this is just an exampleand you can say a number of
things, but that'd be not a badstart.
And then they say, well, Ireally want to know x, y and z
(07:32):
and what's the benefit of usingyou.
And then if then you're giventhe agenda that they want to
talk to, not the stuff that youthink you might want to talk to.
So just remember 75 of ameeting with a vendor and and a
buyer, to be honest with you,probably should be listening and
25% might be talking, but eventhe talking is probably going to
involve a lot of questionasking.
So that'd be my number two Dumbthing is to talk too much.
Tom Panos (07:54):
Yeah.
So on that point, john,everyone listening when you
listen, you learn.
When you make statements, youget judged.
They're the two big differencesbetween asking questions and
making statements.
So we're up to number four,john.
My fourth dumb and dumber thingthat agents do is the final
(08:18):
inspection before settlement.
I want to talk about that verybriefly.
So what actually happens is youdo all this incredible work and
then you realise, oh, 3 o'clock, I've got to be at 27 Johnson
Road, final inspection beforesettlement.
So you send someone over, theyget there late, they're mucking
around with the keys to get inand what actually happens is the
final, last experience, thefinal touchpoint.
(08:40):
You're allowing that buyer togo into the new street, meet all
the new neighbours and they'recoming off.
A bad final touch point.
If there was ever a time toactually make them a client for
life, it's that final inspectionbefore settlement.
In fact, john, I know plenty ofagents who use the final
inspection before settlementmore like a listing presentation
(09:03):
.
They basically say you are nowgoing to be a client for life.
Here is a welcome pack, here isa $100 voucher to have at.
You are now going to be aclient for life.
Here is a welcome pack.
Here is a $100 voucher to haveat Grasshopper Cafe tomorrow
morning to have breakfast.
By the way, I'm going to lockyou in and give you a health
update on your asset a year fromnow.
I know you're not selling.
I'm going to pop in and justtell you whether it's gone up,
how much it has gone up.
(09:24):
If you did 50 deals, you'velocked in 50 pop-ins for the
following year.
So I think treating the finalinspection settlement as trivial
is the next dumb thing peopledo.
John McGrath (09:34):
John Tommy, I'll just add a little level of
intensity to that.
A week before settlement, daybefore settlement, day of
settlement, a week after that'sfour touch points.
They take a combination, atotal, unless it involves a
visit points.
They take a combination, atotal, unless it involves a
visit.
But on the phone, a total offour calls which is like eight
minutes, maybe six, maybe five.
It's a minute to two per call.
(09:55):
Just checking you're.
You're on track with everythingfor next week.
Do you have any questions?
Just checking you knoweverything went okay today.
You settled in.
Day after is everything okay?
And then, a week later,anything I can do for you,
that's five minutes invested tocreate a client for life.
So that's the next one.
My one next one is no price.
You tell me you and I hear thisall the time and I exclude
(10:19):
auctions in queensland from thisremark because I know they're
banned.
Um agents say I want them tocall me, I want to get their
details, I want them to call meso I can discuss the price.
Now, most of the time theydon't call you.
Rea tells us 72% of people, ifthere's no price, they go past
the ad, don't even click on it.
A lot of other people.
(10:41):
Look at the ad, click on it.
If you've done your job right,they probably think it's or they
could think it's out of theirprice range.
Make it easy to buy from you.
Please put a price or a pricerange or whatever's allowed in
your region for the type ofproperty you're doing.
And nine out of 10, eight outof 10 properties I'm going to
say deserve a price.
(11:01):
Two out of 10 are genuinelydifficult, genuinely difficult
to price and you might want tohave that conversation with the
owner, but please don't deludeyourself and believe your own
lies that you're not putting aprice.
Most people why don't they puttheir price?
Because they're embarrassed ofthe price, because it's above
market.
It can't be justified andthey're embarrassed and they
(11:22):
don't want to talk to the buyers.
You need to have thatconversation with the vendor and
say, hey, we need to startfishing where the fish are,
because right now we're throwingthe line in and there's no one
nibbling.
Tom Panos (11:32):
So, john, on that point I had a New Zealand real
estate client that was tellingme that they're just not getting
like.
New Zealand has been achallenging market, but they
were telling me we're just notgetting any buyer inquiry.
Then I said to them you know,are you optional or for sale?
They said, oh, we do buynegotiation.
And I said, oh, what price doyou put on by negotiation,
thinking that they'd be arranged?
They said, oh, we put no price.
(11:53):
And I said, well, what's theinquiry level?
Like they go, we hardly get anyinquiry.
And I said, well, listen, if Iwalk through David Jones or
Myers and everything I look atdoesn't have a price, I'm
walking out of that store andgoing somewhere.
There's a price.
Realestatecom, whose data isthe most comprehensive when it
comes to behaviour, is sayingthat the engagement on no price
(12:16):
listings on their site issignificantly lower than those
that have got a price.
I was talking to you about carsthe other day, john, so it's
really interesting when you goto the car manufacturers'
websites.
They are so transparent nowwith their pricing, like you
basically build the car and itgives you to the cent on what
it's going to cost you.
(12:37):
We live in a world whether it'stravel, whether it's
automobiles, whatever peoplewant transparency.
It's not like it was in the 60sand 70s, where you get the
ethical bride, get them to callyou.
The salesperson will talk toyou.
They won't have a number thatthey're locked in on.
We now live in a very differentworld, where people like
(12:57):
certainty, so-.
John McGrath (12:59):
And Tommy on that and I've used this slide in
presentations you and I've donetogether.
There's a clothing company inthe UK called Asket A-S-K-E-T.
Not only do they tell you theprice, of course, they actually
tell you how much it costs themto make, manufacture and
transport the garment and theyshow you how much profit they're
making because they believe inradical transparency.
So if you've got, on one hand,a clothing retailer who's
(13:23):
actually telling you what theirmargin is and you've got another
hand in our industry theequivalent of someone not
putting the price on thegarments at all, saying oh, they
should contact me, and thenwhen they contact, just rubbish
can't be done.
Next one I've got because Iknow I've only got a few more to
go not staying in touch withpast clients yes, is the most
fun, easiest, lowest hanging,most rewarding fruit you're ever
(13:46):
going to get in the industry.
If you've sold 100 houses inyour life and you can multiply
whatever number, maybe it's1,000 for you, but 100
properties means you have 200people a buyer and a seller for
each transaction that you havethe opportunity to stay in touch
, check in on, see that they'reokay, give them a bit of an
update on what's happening inthe immediate market and stay
(14:08):
top of mind because you don'tknow when their circumstances
are going to change.
So it's an easy, incrediblyimportant, one of the most
neglected of activities of alland people.
I talk to great agents and I saywhat's your nurture marking,
what's your frequency?
Oh no, I've got to admit I'mnot very good at that.
(14:28):
I mean and I'm saying, guys,you are losing opportunity after
opportunity.
So don't think that selling aproperty, doing a great job and
then hoping in seven years timeor five years or three or 10,
they're going to think of you.
You must earn the right tocontinue to be their agent for
life and not only for thatparticular transaction.
But you don't know who elsethey might know, could be a
(14:50):
sibling, could be a friend,could be a work colleague is
thinking of selling.
So when the conversation comesup in the workplace or around
the Christmas table or whatever,you want to be top of mind when
they start talking aboutselling.
Oh, you've got to ring Tom.
He looked after me.
In fact he rang me a couple ofweeks ago.
(15:13):
He's the man.
Tom Panos (15:13):
Let me introduce you.
That's what you need from yourraving fans.
So I think that's our seventhor eighth.
Yeah.
So, john, on that, I just wanteveryone listening to remember
these words recency trumpsloyalty.
I've even got a very closefriend of mine, an agent, who
was whinging away saying ohTommy, it's not like the old
days, there's no more loyalty.
And I said what do you mean bythat?
He goes oh, mate, I sold thesepeople their house.
(15:33):
You know, they never even gaveme a looky.
And I said, mate, likeseriously, when you sold them
the house, they did not sign anagency agreement saying that
they're obligated for the restof their life to give it to you
because you sold them a house.
Right, and all I'm going to say,john, anyone that's listening,
the hardest call to make is thefirst call if you haven't been
(15:55):
talking to anyone for five, 10years, and I reckon a really
good softener is hey, it's TomPanos here.
Firstly, I want to apologize.
I should have been in touchearlier.
Loves, a, sorry, it'll get youback in there.
Start the conversation and Ithink you're spot on.
Why go out door knocking,interrupting strangers?
(16:16):
You don't want to talk to you,when all you got to do is make a
phone call to that person thatlikes you already, but for
whatever reason, you just stopchatting to them.
John, is it my turn or yourturn?
Next, my turn over to you?
Okay, so the next one is theydon't delegate, they don't
delegate, and sometimes it'seven.
I saw an agent who, in the worldof Zoom and I use my studio at
(16:39):
Haberfield often and so you knowwhen you're driving around
about two suburbs away, I'mdriving one day and I see an
agent in the middle of the daymowing the lawn right, I put my
window down.
I said why would you do thattoday?
And he goes, mate, he goes.
You know, on a Sunday you'retotally wrecked.
(17:00):
You know I've got to do it.
I said, mate, jim's lowing $50,mate, $50.
They'll do it and you don'thave to do it.
But that's one extremeno-transcript and I often see it
(17:33):
being out and about.
I hear people say hey, tommy, Iused to be in real estate.
When you sit back and ask themwhat happened, often they just
didn't know how to manage freetime, they just tried to do
everything.
John McGrath (17:47):
Yeah, tommy, I agree, and I'll comment on that.
Then I'll give you my last one.
I was coaching one of our teamthe other day and they're a very
, very successful team and I washaving a coaching session with
them and they were just tellingme how flat out they were, which
they are.
They really write a couple ofmillions.
So extraordinary, healthy teamand they're on the upward
trajectory.
And they were telling me abouteverything they're doing and I
said have you ever consideredgetting a housekeeper?
(18:08):
And they looked at me you know,not strangely, but surprisingly
is probably the best adjectiveand you know I said well, look,
you know I've got a greathousekeeper.
She's $32.50 an hour.
I don't know if that's too muchor too little, but it's more
than I'm happy to pay that toget someone to look after the
home, to look after the dogwalking, to make sure the fridge
(18:29):
is stocked and all the thingsthat need to be done.
So, yeah, the other thing isright at the end of your street,
almost Crystal Car Wash, Ithink.
I have an annual $2,000subscription, which means any
day of the week, or every day ofthe week if I wanted to, I
drive the car in and sevenminutes later it's washed inside
and out and I'm on my way againwith a clean car.
So you know it is very easy toleverage with a team.
(18:51):
You can get virtual assistance.
You and I spoke at Wingman theother day, which is a great
event.
You know they're terrific athelping you if you need an
offshore solution which is agreat event.
You know they're terrific athelping you if you need an
offshore solution.
Or you know car washers,housekeepers, dog walkers,
whatever it is Nowadays, youknow you can get the help you
need to leverage what you'rebest at, which is dollar
(19:12):
productive activities.
Last one for me three letters.
I hate them.
I hate the word that they formego.
This industry has to, once andfor all, stop thinking we are
God's gift to anything and wehave to start seeing ourselves
as servants of the buying andselling public who are here to
make the process of buying andselling enjoyable, transparent,
(19:37):
profitable, helpful, easy all ofthose things and stop thinking
that we are God's gift andportraying ourselves.
And yeah, social media isfantastic for educating people,
for giving insights that peoplewouldn't have got elsewhere, for
promoting properties, even forupdating people on good sales
you've made.
But please get rid of the ego.
(20:00):
It's not about you.
Asese witherspoon said, thinkabout the person that's reading
it.
Don't think about yourself andwhat you want to get.
Think about what they want toget, and they certainly don't
want to hear about how manymillions of dollars you've made
this month or whatever.
That's just really quite, quite, uh nauseating when I see these
agents like throwing out eightmillion this year, four million
(20:23):
this month or whatever.
It's just like.
Come on, guys, seriously.
There are people out there.
You must be tone deaf.
There are people who arefinding it hard to pay this
month's week or mortgage, weeklyrental mortgage, and you're
running out there.
Not great thing you're doingwell.
I applaud agents that do well.
Please don't spread it acrosssocial media because it is
(20:43):
offensive, it's not attractiveto anyone that you're selling to
and, in fact, it's really tonedeaf in this current environment
of high cost of living.
Tom Panos (20:54):
John so well said and on that ego one, make this the
last one because it's aligned toit.
I actually think there's agroup of real estate agents in
Australia.
Their business would actuallygo up doing nothing else but
deleting their social mediaaccounts, because their social
media accounts are actuallyharming their business, not
helping their business.
(21:15):
I mean, that's the fundamentalreason, john, why if you read
the comments, if you read thecomments of what people say on
social media about real estateagents, you begin to realise why
they think that way.
Right, when they're seeingagents, you know, pump out the
affluence, right.
So if it's not affluence, it'sreconfirming how good you are.
(21:38):
It's this classic thing.
We're not seeing dentists puthashtag 10 root canals today.
Doctors hashtag best Medicaremonth I've ever had in my life.
You're not even seeing plumberssaying hashtag you know 10
sewer canals today or whatevertheir KPI is.
And also, you know there's abunch of real estate agents that
(22:00):
go off and like these fakerenter crowds that's happening a
lot now Thinking to yourself oh, no one knows.
I mean, they do know, they cansee it, it's obvious.
They look at likes there's nocomments, there's no engagements
and it looks like it's a rentercrowd.
John McGrath (22:16):
Right?
They tell me some of theseagents are very big in Brazilzil
.
Apparently they have huge, hugefollowings in brazil, tens of
thousands of followers frombrazil there's only one problem,
john.
Tom Panos (22:27):
I just can't see anyone listing their home from
brazil in wulara today.
Right, as they say, sometimesbeing famous with that renter
crowd is like being rich inmonopoly.
It doesn't matter, it's allfake money, john, dumb and
dumber.
But the good news is is everyone of these things can be fixed
with no money and a simpledecision.
(22:50):
Hey, I'm going to do itdifferently.
John, great to see you onceagain.
We're going to have Troyjoining us next week.
To all our listeners, I want tolet you know it is a very big
real estate period, some bigsales going around the place.
In fact, tringali just sent mea message.
He sent one around the cornerat 6.12 today, 6.12.
(23:14):
You're on the ball, john.
He's on the ball 6.1, yeah.
So, john, good to see you, Iwill see you next week.
John McGrath (23:21):
Thanks, tommy, have a good.
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