The Biggest Pricing Mistake Vendors Are Making 🗞️ Real Estate Market Wrap

0:00 - War, Ultimatums & Global Uncertainty

1:35 - How Global Fear Impacts the Property Market

2:40 - Even lower price points are starting to feel the pressure.

3:20 - The story of the vendor wanting another $50k 

5:05 - Meet Clients Where They’re At

Clearance Rate: 5/12 SOLD + 5 more auctions tomorrow 

Transcript

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Why War Feels Pointless

Tom Panos 0:00

I am super, super keen, like everyone else, to end this stupid business model, which is called the war. Think about it. It's got to be the most futile business model in the world. You get young, healthy people with the world ahead of them to go and kill other young people that are healthy with the world ahead of them. It is stupid stuff. No return of investment. Just dumb, dumb, dumb. I have to say to you, we used to have this guy at my school. He was a bit of a bully. I remember one day he said to me, gave me an ultimatum. He says, if you don't do this by then, he goes, I'm going to bash you. He basically was by the end of the period. He didn't bash me. Then he says, if you haven't done it by the end of the day, I'm going to smash you. He never did it. Then he said, if you haven't done it by the end of the day after tomorrow, you're dead. I didn't die, as you can tell. And this morning I thought about it. He reminds me, or Trump reminds me, of this guy. Trump turned around and said, Listen, if you haven't done this by two days, Iran, this is what we're doing. He never did it. Then he said, we've extended it to five days. He never did it. Then he turned around and he's extended it to ten days. He's becoming like a guy that people are starting to think, hang on a second. Is this saying the truth here? He's also telling us he's cutting a deal with Iran. Yet you hear from them and they're saying, man, we're not talking to him. So I'm beginning to think to myself, are you real? Right? And I want you to know that the longer this war goes on, the better it is for Iran. They want it to go on. And I think what's actually happened here is Trump and his team have underestimated how progressed Iran had become. And I think they're now in the war, and now Trump's stuck because he probably wants to get out. I'll tell you why he wants to get out. He wants to get out because his own people have turned on him in the USA. You know the ones that used to wear the red caps? Well, that energy and momentum's going. This is not a political comment, but I want you to know that I want this war to end as well, because I can't look my daughter in the eye and explain to her why America wanted a war in the

Fear Hits Property And Rates

Tom Panos 2:26

first place. She asked me the other day, I couldn't come up with an answer. What I can't understand is why we needed an actual war by America. We still don't know. But why I want it to come to an end, ASAP, is that there's paralysis, there's fear in the market, guys and girls. I've got to tell you, there's absolute fear in the market. And the longer this goes on, the longer people, not me, but probably my kids, your kids, and the generations after us, they're going to pay a price in the years to come, right? And we clearly know now that interest rates, and this is how it affects property, right, they're not coming down anytime soon. No way in the world. And we've got to accept that there is a high correlation between interest rates and the state of the real estate market. So I've got to tell you what I'm seeing happening right around the marketplace at the moment. And now we're seeing for the first time even the lower price point, the lower price point actually being impacted. So I've been talking to agents all over the country and also in New Zealand, and New Zealand's gone really bad all of a sudden as well, right? And I think with a lot of people it is the war. Why does this actually happen? I'll explain to you. When you actually have fear, when you have a big thing, people get paralysis, right? They stop actually acting, right? They stop actually doing things. And I've got to say to you, that's what we're doing. So the sooner, the sooner we start seeing this war come to an end, the better.

Self Driving Cars And Market Mood

Tom Panos 4:08

Um, thank you so much, Aaron. Yes, the Tesla's on its way. I cannot wait till I get a car that I don't have to drive. I think driving's the most overrated thing. I don't like doing it. So I've got one of these self-drive cars so I can use less brain calories making decisions while the computer makes the decisions for me.

Vendors Wanting Extra Money

Tom Panos 4:26

Probably the funniest thing of the day today was the vendor that said to me, Tom, can you go up to the buyer and let them know we need another $50,000 to do the deal because we bought it during the boom and let them know it's an amazing house. It's given us amazing memories. And I looked at him and I said, So let me get this right. You want me to go to the buyer and tell them you need more because you bought it during the COVID boom. Listen carefully. If you're a vendor, I need you to understand when you bought a property or why you want extra money for your property does not concern the buyer of your property. The buyer did not wake up to come along and help you get a high price because you bought it during the boom. They came to buy a property today to get it as cheap as possible. That's what they did. When you bought that property, I said to the vendor, that was called the purchase price. What we've got today is called market price. There is no correlation between purchase price and market price. Hypothetically, let's assume you bought the property it a in 1871, right? Or you bought the property during the recession of 2008. It makes no difference to the buyer today. They're buying the property based on comparables. They're not buying the property because they want you to get a good price because you paid a lot of money for it during the boom. Actually reminds me of Carl Sandilans, whose case is he wants his contract reinstated because he thought he was going to be getting $780,000 a month, because that's what he's invoicing the radio station for, for the next 10 years and built his life and bought a house about that. People don't care about that. In addition to that, today, unfortunately, and I actually think the agent that I'm talking about probably watches this

Meet Clients Where They Are

Tom Panos 7:12

video. A friend of mine wanted to book an auction, list the property. They hadn't signed it up yet. Then I saw an email that more or less turned around and said, Hey, I want Tom to do my auction. That agent sort of tried to get their auctioneer to do it, and now the vendor has decided that he's gonna go off to another agent to give it. Now I've got to tell you, this is a simple common sense. Meet people where they're at. If this is what a client wants to do, do it. And trust me, I don't want the auctions. I'm already under the pump. I want to be going home earlier. I work 60 hours a week, Monday to Friday. Options is only 5% of my life, right? Very small part of my life. My whole life is basically a business performance consultant and a digital subscription business and an ambassador to a number of firms, right? And all I'm doing is traveling, hotels, conferences, coaching, all strategic work, curating content. I don't want to be doing too many more auctions. However, there's a great saying man, until you sign up a listing, you're not in a position to go off and be saying things to people like, no, do this. You have no control over that listing. And that's regardless. Meet clients where they're at. Anyway, couple of other things before we go, because I have an appointment in a

Weekend Win And Sign Off

Tom Panos 8:41

moment. Five out of twelve, as I said to you, thank you, Malcolm Quinn. The Tigers, and that, my friends, made it the best start to a weekend. The West Tigers going to Auckland and winning without their star player against a team that is tipped was being tipped to win the premiership. That was so good. Ladies and gentlemen, on that basis, I'm signing off.