7 figure Attraction Agent
Tom Panos interviews leading real estate attraction agents. These agents share their strategies for writing 7 figures year after year. Simple, powerful and effective - you can apply these tips to grow your real estate business today. For more FREE tools visit: www.tompanos.com.au
7 figure Attraction Agent
Why are we so OBSESSED with AUCTIONS? 🗞️ Real Estate Market Wrap
00:24 – I’m expecting large levels of stock coming onto the market Sep–Nov
01:29 – 15% of properties go to auction, 85% don’t — yet we’re obsessed with auctions?
07:27 – Simplifying auction price guides
09:52 – How AI is transforming the buyer–seller and agent relationship
My Clearance Rate: 5/7 SOLD
In Australia we've actually created a narrative that you're a winner if you own a home, which is really a stupid narrative, right? Like basically saying you're a winner, you're doing good, you're great if you own a home. You can actually be great in life not owning a home, right, being healthy, having a successful business, right but we've had this dream of owning real estate. Ladies and gentlemen, I've got to say to you I'm expecting a large level of stocks happening September, october, november, december, just the first week. In fact, I would urge any vendor that's out there don't auction your home after the first week in December. And I'll tell you why. December is the month they don't go to your auction. They go to Westfield. December is the month they don't come and bid, they go to Bondi Beach. So I've got to say to you I see a lot of fatigued stock hanging around in December with very motivated vendors that want to get out, and I see a lot of buyers going around cherry picking getting good value. So if you're a seller, you shouldn't be selling the last couple of weeks of December. I've got to give you a couple of fun facts. It's been a fueled week or so with auctions and price guides and quotes.
Speaker 1:I've got to let you know I'm fascinated how in Australia 15% of the properties go to auction and 85% don't. Yet we seem to be obsessed with auctions. And then I thought to myself where are all the auctions? Because I look at New South Wales and Victoria and then when you look at the data, it appears that Sydney sorry, new South Wales 20% auction, 80%, not auction. Melbourne 22% auction, 78% auction. Then you go in and you actually go in deeper and you look at the city of Sydney Sydney auctions 50%. Melbourne auctions roughly 50%. Why has Sydney and Melbourne got the largest proportion of properties that go to auction in? I would consider the world. I just don't see other real estate markets being so obsessed about auctions as we do in Sydney and Melbourne. And I've got to tell you here are the reasons why I think so. Number one Sydney and Melbourne have traditionally been the areas where the demand and supply curve, particularly for houses, favoured the seller, ie more buyers than sellers. People weren't building stock shortage of supply and they are perfect. However, over the last couple of years we've seen Melbourne slip down. Perth, brisbane and Adelaide get ahead of it behind Sydney and those areas now, and including Canberra is surprisingly a big auction area as well. So one of the reasons is the demand supply curve, but there are more reasons why Sydney and Melbourne have 50% of their properties going to auction.
Speaker 1:The second one is media reinforcement. You see, when you open up the press on a Sunday, what you'll see is the property that's sold in Coogee for $500,000 over. You're not going to see the two-, two bedroom house that got sold as a private treaty in grey stains. You won't see that right. So you get media reinforcement Talking about great prices. I've got to let you know I had a property today that sold for like 400 over. That's been a long time and I've got to tell you it was a copy book, option Guide and Reserve quoted. The same number Guide went up and you've got to listen. Like if you've got lots of buyers you've got to be putting the guide up. I'm not going to go into all of that. We've spoken a lot about that.
Speaker 1:I want to finish this subject on auctions. Candidates in trouble, says Don he. Will Australia follow? I'm not quite sure, but I can tell you the depth of buyers that people think they are with rates going down, and today was a really big test the week of interest rate cuts. But I think most people are not that stupid these days, right? They sort of factor in that rates are going to happen. It's not. Oh, rates went down. Let's go buy a house and pay 100 grand more. It doesn't work that way.
Speaker 1:Let me keep running through why Sydney and Melbourne are the capitals. We've said media reinforcement number one. Number two the demand supply curve Number three cultural reasons. Have you noticed in life sometimes that's the way we do things around here, right? Cultural, there's no reason, but we just done it that way. Like anyone, think of something, like people of Greek heritage, when you walk through a front door visiting people, you've got to walk through the front door to go out. You can't go out the side gate. It's like that's superstitious. That's what it is. It's right, I don't know. So that's the next reason. Let me give you another reason Because the stakes are so high in Sydney and Melbourne and because in Australia we've actually created a narrative that you're a winner if you own a home, which is really a stupid narrative, right?
Speaker 1:Like basically saying you're a winner, you're doing good, you're great if you own a home. You can actually be great in life, not owning a home, right, being healthy, having a successful business, right. But we've had this dream of owning real estate. So that dream means that you've got buyers who are sitting there that are highly motivated, highly motivated and, yes, melbourne will improve, melbourne will improve. So you basically got the Australian dream wanting a house.
Speaker 1:And then the last reason I think that people love auctions is with so much money at stake, it is actually clearer and people feel more comfortable knowing that they're bidding with social proof in front of them in real time and they're able to see it, whereas some of the other methodologies are probably not as transparent. Example like if you're putting numbers in an envelope, people are going to say not knowing what the other person put in, and they could actually feel like they're not getting trust, with the agent saying, oh no, we had a higher number, there's all that sort of stuff. So I think people like the real, in-time social proof. Hey, look at this person, that person's bidding, that person's bidding, that's an underbidder. So they're the reasons I actually think, ladies and gentlemen. Anyway, team, I'm going to head off here and I've got to let you know.
Speaker 1:I think it's a lot more, you know a lot more complicated on that option front than it has to be right, it's not difficult, right, it's not difficult to actually, because a lot of agents have been saying Tom, what do I do? What if the vendor wants this? What if this? It's really simple, team, what you do. Hey, let me just go through it very quickly.
Speaker 1:You go to a property and let's assume you think to yourself it's worth $1.3 to $1.4. Okay, you put that on the estimate, right? You put that on the estimate and as people come through, you say to them my estimate is $1.3 to $1.4. To 1.4. By the way, you can obviously go 10%, so it can be 1.3 to whatever 10% of 1.430 thereabouts. Right, you can have a 10% bracket. You can also turn around and actually say not quote a figure, right, which I can tell you it's actually going to annoy buyers.
Speaker 1:But you know what, in certain marketplaces where buyers are pretty savvy with real estate AI, I think, with people like that and I'm seeing it happening with my own eyes they're turning around and they're knowing that why would they actually be guided by the agent who's got a relationship with the vendor, that's getting paid by the vendor to get them the best price? Why would that buyer make their whole housing plans based on that kind of relationship. I suggest that every buyer does their due diligence, and you know one of the fastest way you can do it you grab your phone and you just say I'm at X Smith Street, number. Blah, blah, blah. That's the suburb. I want to ask you what are the four closest comparable sales that have sold to this property? Right, that way you are getting information that is not influenced, right? So a lot of people actually are starting to do that.
Speaker 1:And whilst we're talking about that man, I've got to tell you AI is actually transforming how the relationship that vendors, buyers and agents have. Example vendors now are using lots of various tools that they were using before, like Rumor, which is Laff realestatecom going up their domain looking at sold results. Right, but a lot of them are now also going on and saying, hey, I want to sell my house in Leichhardt, I want to call three agents over. Who are the three to call Once they've come on over? You then ask it this question I had three agents come over. One's given me a fee of 1.5%, one's given me a fee of 2%. One's given me 1.75%. This is what each agent is charging and I'm confused on which one I should pick. Please give me some suggestions on who it should be. This is actually happening, so this basically means that every real estate agent now has not only it would be good to, it's actually non-negotiable to build a digital footprint, particularly now that we have IOS. Every update coming in which stops canvassing calls, which means that, as a society, the way that we're going to be interacting with customers will probably be less. On the sales phone approach I'm not talking about talking to people, but I'm talking about the Manila call center approach might actually slowly disappear, where it's all going to be about brand attention and it's all going to be about people going on there collecting the information themselves. Obviously, ai is going to be a very fast way to do it, so it means that you should become a video first agent.
Speaker 1:Shoot more video content. Add more value. Don't be a commodity. Go to your local council website. Print off the newsletter Every month. Do a video blog bringing the community together, because I've got to tell you they don't need other crap. They don't need you on your social media posts talking about how great your life is. They don't want to know how much money you're making. They don't want to see your Rolex, right, you know what? Have you ever seen a dentist go hashtag 10 root canals. This week, hashtag million dollar month. This week, hashtag number one dentist in Leichhardt no, but you see it in real estate all the time.