Gut Feelings vs. Data: Making Smarter Decisions in Real Estate 🗞️ Real Estate Market Wrap

1:54 - Real Estate Auction Success Amid Market Uncertainty
3:05 - Quality Stock and Insights 
3:55 - Impact of Superannuation Access on First Home Buyers
5:49 - AI's Transformative Impact on Real Estate Practices
8:20 - ChatGPT as a New Lead Source for Real Estate Agents
10:30 - Election Uncertainty and Reserve Bank Rate Predictions
11:01 - Intuition Versus Logic in Decision-Making


My Clearance Rate: 10/10 SOLD 

Transcript

Real Estate Market and Government Policies

Speaker 1 0:00

The Liberal Government has announced that if they were to get into power on a federal election that is , on or before May 17 , that they are going to allow first home buyers to access their superannuation their superannuation .

Speaker 1 0:27

Ladies and gentlemen , I want to let you know today I conducted 10 auctions scheduled , though seven went ahead and it is a 100% day , 10 sold out of 10 , where they all sold under the hammer , except for two properties that sold after the auction , but within about 30 minutes of the auction . Do I think that the decision during the week brought the buyers out into the market ? No , I think what it does is that someone that was thinking of buying then becomes more certain of buying . I don't think that there was someone who was not a buyer last Saturday who is a buyer this Saturday . It doesn't work that way . In real estate . It doesn't work that way . In fact , it could take a number of weeks before buyers who feel that rates are gonna to be going down get their loans approved , do their due diligence , look at a property , take a contract to a solicitor . It could take some time . However , 10 out of 10 , numbers don't lie 100% clearance rate , and that , to me , is essentially saying a number of things happened , and that was people were less scared . But also , I think I look at the stock that I had today and it was good quality stock . It was very good quality stock .

Speaker 1 1:57

Now there's a couple of things I want to cover . Hey , stephen , good to see from you as well . Good to see from you as well , sir , but I've got to let you know you've just proven to me , steve , that you don't need to have a long neck to be a goose . That's what you've proven to me , steve . Ladies and gentlemen , I want to let you know that the Liberal government has announced that if they were to get into power on a federal election that is , on or before May 17 , that they are going to allow first home buyers to access their superannuation . Okay , now , that means that you're going to go in and if you've got enough super in there , you can take up to 50 grand and use it as a deposit on a property . On the surface , let me tell you , buyers are going to get excited .

Speaker 1 3:02

But there's a case study . This happened in New Zealand and I can tell you the winners aren't the first home buyers . The winners are the owners of real estate , because prices go up and they'll be going up not only the 50 grand , they'll be going up more because all of a sudden you've got a lot more buyers in the buyer pool that are fighting over these properties and I can tell you right here , right now , that if that were to happen if you see what happened in New Zealand they outstripped the Australian market when they brought that policy in in 2010 significantly . It wasn't double , but it was close . So I'm all for making it easy for first home buyers , but I'm not absolutely convinced that this is going to be the solution . I'm not absolutely convinced that this is going to be the solution . Regardless , it's really clear real estate is going to be one of the key policies that is going to win this election and also , of course , cost of living . This , in surveys , has come up as the highest priority by the voters , and I've got to tell you . The only other reason today that we got 10 out of 10 is a lot of the real estate clients I work with have been trained to actually make sure they're not doing what a lot of our industry does , which is they go in , they overprice to get the listing and then they come out with a sledgehammer and hit their owners down and they will make a sale , so it will appear as sold . But what you don't actually see is the qualitative effect of that approach . You see the quantitative effect it's a sale . The qualitative effect is you've got a very vendor that's disgruntled and upset because they were told they'd get a lot more and they're actually hit with a hammer . Now I'm training my real estate agents now to be using AI as part of their vendor reports . You can get your realestatecom report , your CRM report , say , from Agent Box , and you put them together and then you say to chat , gpt , analyze the data each week and create an executive summary and I can tell you it is extremely powerful and extremely informative to the clients .

Speaker 1 5:36

I believe there are three things in the last 40 years that have been big in real estate . Two of them have happened . The first one was in the 80s the emergence of the franchise model and brands . Before that it was independent officers . Then we just saw franchising actually set itself up on the landscape of real estate . The second major change in the last 40 , 50 years has been portals , particularly realestatecom , which changed the game both in media and also gave the consumer a lot more information in media and also gave the consumer a lot more information . Basically , consumers became valuers and the realestatecom just sold section becomes the NRL or AFL ladder . That's telling consumers out there , vendors in a marketplace , who is selling what . How much are they selling them ? Who's selling the most ? So it's like a ladder that's saying this agent is better than the other . And the third thing , my friends , that is changing the game is AI .

Speaker 1 6:50

I myself have seen what it's done to my business . I just cannot get over how much of the new business people that I did not have a relationship with are reaching out , all because they're going into chat GPT and saying who's the best real estate trainer , coach , who's the best motivation speaker , who's the best auctioneer ? So I've gone in and I've looked at it and , because of my heavy content creation over the last 20 years , seo is getting me coming up number one in all of those and what basically is happening is this is becoming now a lead source . The reason I share this is I see it very soon that chat GPT will be something that vendors will use in agent selection . They'll get on their phone because it's easy and it's fast and they'll say want to sell my house in Newtown , who should I call . And that means every real estate agent watching this has to jump in and double down and triple down really hard on content creation , because chat GPT is actually above Google , right , and it's sucking up every bit of information and intel out there . And right now I can also tell you I had a one-on-one well , actually , john McGrath and I had a two-on-one with the CTO Chief Technology Officer of Ryan Serhan in the USA , and I can tell you they're actually going out to listing presentations and before they go out , they're actually putting the vendors through social media , chat GPT analysis and they're going out to a listing presentation , having analysed what is the best approach to communicate with that vendor . It's unbelievable . In fact , I was the subject and the scientist . They put me through . It only takes 30 seconds and it actually said if you're going to go list Tom Panos , these are the things that he highly values . This is the language you should be using . Anyway , ladies and gentlemen , I'm letting you know real estate is hot right now .

Speaker 1 9:06

I don't know what the federal election is going to do to the marketplace . I know that for a couple of weeks there'll be people not putting their homes on the market . We're all anxiously waiting on when that election is going to be . It's got to be on or before May the 17th . So I see a fair bit of property will get processed until that announcement . Then I see maybe a bit of a pause

Reserve Bank Governor and Interest Rates

Speaker 1 9:32

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Speaker 1 9:32

And if you listen to Sandra Bollock , the Reserve Bank Governor , she's turned around and she's sort of saying there won't be another rate cut for a long time . That's what she said . In fact I think she hinted to February next year . To be honest with you , I wouldn't trust the thing you're hearing at the moment in terms of when it's going to be honest with you , I wouldn't trust the thing you're hearing at the moment in terms of when it's going to be , because I think the Reserve Bank makes up their mind on the day . I don't think that they sit there with scientists and modelling and come up with a decision a week before . I think they sit down in that boardroom and say , yeah , let's go for it , or they say give it another month .

Speaker 1 10:17

I don't think there's much more science to it and the reason I say it as someone who's worked in the corporate world with a Murdoch for a very long time people underestimate how much people make decisions on intuition and quite frankly , I don't think that's a great decision . Intuition , and I'll tell you why . Because gut feeling decisions aren't great . Here's an example If I said to you that if you went to a shop to buy some coffee and a cookie and the total price was $1.10 , but the price of the coffee is a dollar more than the cookie , what price does that make the cookie worth ? Think about that . I'd love to hear the answer , because I can tell you nearly every one of you are going to say 10 cents , but that's not the right answer .