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Predictions & Agent Red Flags 🗞️ Real Estate Market Wrap

• Tom Panos - Real Estate Coach & Trainer

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00:08 - Market Predictions
04:08 - Agent Red Flags

My Clearance Rate: 7/7 SOLD

Speaker 1:

People pay you a fee, but it's value that they get back. You want to improve your fee, improve your value. I have never seen a real estate market like this, at least since 2021, 22, during the COVID years, when there was very little stock on the market and the place was booming. As you all know, we had probably the biggest boom in real estate since 1988 during the COVID period, so much that the media had got it wrong They'd had front page stories in the media was prices were going to drop by 35%. They actually probably did the opposite. So I've got to tell you these results are hot. And why are they hot? Let's go through why they're hot. They're hot number one because people think prices are going to go up. Well, I've got news for you They've gone up. They've gone up. When you're in Newtown and you're seeing houses sell, hey, luke, when you're seeing houses sell for two, 300 grand more every week and that's in the inner city, that's telling me that it's going out to the suburbs. This market's hot. We all know that Perth and Adelaide have been hot regardless, and we know that Brisbane's pretty hot. Now we're beginning to see Sydney's hot and I can tell you, whilst Melbourne has still got the hangover from those property taxes. And, dan, I've got to tell you my clients are telling me that even they're getting swallowed up now. And I've got to tell you it's only going to get worse for buyers. I'll tell you why On October 1, there's going to be significantly more buyers in the lower price points around the country With a 5% deposit guarantee scheme. I've got to tell you there is people lining up. There are people within my own family who are now thinking about property because they just thought to themselves we'll never get to a 20% deposit. Now they're thinking, hey, 5% deposit on a $700,000 property, hey, that's doable. The Perth market is hot. The Perth market is hot. The Perth market I'm answering a question here. The Perth market stock levels have gone down to unprecedented levels. It is an absolute seller's market. So I'm getting a lot of.

Speaker 1:

By the way, auctions scheduled for September the 27th are having the vendors contact their agents asking them to delay their auctions till October with the view that they'll get more buyers, because buyers can't qualify to do the 5% deposit till October 1. So if you're auctioning on September 27, you don't get those buyers. So here's my advice If you're a vendor at the moment. Who's watching this and is trying to work out whether I should delay my auction. The answer is most likely no, but for some of you the answer is yes.

Speaker 1:

For those of you that know is if your price point is higher than the threshold set by the government where they'll give you the 5% deposit scheme. Example in Sydney it's $1.5 million. In Brisbane, I think it's a mil. In Melbourne, I think it's around a mil or $9.50. So all I've got to say to you is if you're not in that price point, it's irrelevant. But if you are in that price point, it's irrelevant. But if you are in that price point and let's assume you've got zero buyers at the moment you might want to look at doing that right. But you also need to know if you delayed your auction by a week and you're in New South Wales and I know New South Wales has got a long weekend there like you're going to delay it for a long weekend, which is grand final weekend as well, but if you're delaying it for a week, it's neither here nor there. Do you honestly think a buyer is going to see their property on October 1st? Then go off, get the lawyer to look at the contract, get a loan approved and buy it on October 3rd. It doesn't work that way, so I wouldn't be too concerned about it.

Speaker 1:

So a couple of other things I want to touch on. And that is when I was in Adelaide this week. I just couldn't believe it when a client of mine showed me what other agents are actually charging in Adelaide and I just was gobsmacked. I mean, I would have thought Adelaide, which you know, typically in Adelaide there's a lot of real estate that sells there under a million dollars, right, even though prices have gone up. Adelaide is not a high price point when you look at the rest of Australia. But to doing it 0.7%, and all I can figure is that real estate agents in South Australia and there's some really good trained agents there. However, all I can think of is that they just weren't skilled in working in a marketplace that had a shortage of stock For the first time. Prices were booming, agents would do anything to get a listing and obviously dropping their fees was one of the strategies to getting the listings and they just had never been trained up to understand how to actually sell your fee. I mean, I've never, really ever. I was in real estate for a very long time.

Speaker 1:

So I've been in the world of fee negotiation and I can tell you, whenever I was asked about fee negotiation, I used to remind people that if another agent that they'd spoken to had dropped their fee after the agent asked them to, that was a red flag. That was the first of the red flags. I mean here we had a real estate agent who was prepared to actually drop sometimes 25% of their fee. If that's not a red flag about what they're going to do to the price of the vendor's house, I don't know what is. That's the first thing.

Speaker 1:

The second thing I used to talk about in fee negotiation is this People pay you a fee, but it's value that they get back. I'm going to say that again. Warren Buffett actually says it best People pay you a fee, but it's value that they get back. You want to improve your fee, improve your value, move away from being a commodity and start being a value-added provider. Show more, do more, give more, quite. Simply, 1% more expensive but 5% better than another agent means your client is still 4% better off going with you.

Speaker 1:

And I've got to tell you, I see a lot of real estate agents that are very poorly trained. And the ones that are poorly trained often are the lowest fee agents, and you know what I see it all the time they sell properties at lower figures than what a good agent could have sold them at. That's a fact, and I've got to say to you that I am so excited because today I finished early. And I finished early because I was going to go to Manila tonight, but I'm going to go tomorrow morning for the Wingman Conference. I'm an ambassador of Wingman and a speaker at their conference. I'm going to Manila and I'm also going to be seeing my beautiful virtual assistant, who's been with us for well over a year now. Princess, I get to see her.

Speaker 1:

In addition to that, I've also got to let you know 23rd and the 24th, byron Bay. Here we come, my second home. I'm having one of my first events there, called Thrive. It's sold out. 23rd and the 24th of September An opportunity to look at the whales, swim in beautiful water, learn a lot about AI and effective business units, sit with a group of 78 people who have got one common goal have an ELF life and business effortless, lucrative and fun. Don't worry for those of you that aren't coming. I am going to hold another event in Byron in probably the first quarter of 2026.

Speaker 1:

In addition to that team, I've got to say to you it is our state of origin season in real estate. It's red hot. I won't be doing a lot of auctions over the next month or so but because I've got a lot of overseas work conferences in London, bulgaria, greece, new Zealand and I've got the block and I want to just confirm, I went and saw the block in Melbourne on Thursday night, caught up with Robbie. I'm representing Robbie and Matt, house number five. I was always doing their house If I was going to do the block. Obviously, you all know I was unwell and I got rid of a lot of my commitments when I was going through cancer treatment, but that has now resolved and we're back in business. Baby, the 25th of October. All eyes are on house number five, the one with the pickleball court. Ladies and gentlemen, that's the end. The sun's out. You know what I'm going to do. I'm going to go for my second run of the day. I'm doing the Bay Run.