7 figure Attraction Agent

$4 Million Property SOLD in Greenacre 🤯 Real Estate Market Wrap 🗞️

August 03, 2024 • Tom Panos - Real Estate Coach & Trainer

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I'M FIRED UP TODAY 🔥🔥🔥

1. What the economists are saying about Interest Rates
2. $4 million property sold in Greenacre
3. The Mortgage Cliff has already happened
4. Appalling advice from Real Estate "Trainers"
5. I conducted a 1 min auction and it sold for $100K above reserve. When vendors ask for a discount.
This was my response...

My Clearance Rate: 8/11 SOLD (2 cancelled prior)

Speaker 1:

$4.1 million. This is Greenacre. I've got to tell you, greenacre was an area people laughed about. I'm outside a property right now in Greystains, and the auction started at 4.30. It is now 5.24, so it's nearly an hour and we have been negotiating and I'm pleased to let you know I've walked out because there has been a deal offer and acceptance done during negotiations and that property has been sold for $1,460,000. So that means that today I actually did 11 options. Two got cancelled yesterday as there was no buyers on them. They were in epping and that meant that I actually ended up conducting nine auctions and sold eight out of nine. So really it's eight out of eleven, following last week, which was 13 out of 13.

Speaker 1:

And I have to tell you the health of the real estate market is pretty good Now. That's pretty good on reduced winter volumes. So what's going to be interesting is will it be pretty good on increased spring volumes? Will the buyers keep pace with the listings? That remains to be seen, but I'm hopeful because the inflation numbers that came out during the week came back better than expected and economists have only got a four percent chance that there's going to be a rate rise this Tuesday and nearly all economists that's a hundred percent right, ninety-five percent, I think. It was said that there will be a rate cut by around February next year. So buyers are factoring her in and they're bidding and it explains why there's some incredible results.

Speaker 1:

Now I've got to tell you about some of the results. Who would have thought? In Greenacre, a property that was scheduled to go to auction has been sold prior for $4.1 million. This is Greenacre, I've got to tell you. Greenacre was an area people laughed about. I actually said to people look out, look out, because I've got to tell you, when I'm sort of stopping to get a cup of coffee or just getting a quick bite to eat between auctions, if I stop on Waterloo Road, greenacre, and I look at the cars coming by, I count more AMGs there than I would in areas like Balmain, the eastern suburbs. I've got to tell you and it's surprising, I told someone in Greenacre it reminds me of Jerusalem. Surprisingly, greenacre, I told someone in Greenacre, reminds me of Jerusalem. It's a melting pot of Christians and Muslims that seem to coexist very, very well. Good schooling on the border of Stratford. And that's why, ladies and gentlemen, you're getting a $4 million, $4.1 million price for a house. Mark Sully sold that.

Speaker 1:

Now, team, I've got to also say to you the price point that I've been following that is becoming most concerning is the $2-5 million and even though that property sold at $4.1, if you look, $2-5 million across the board across Australia is the most challenging price bracket, and the reason why is it is that group of people that are borrowing the most money. Someone borrowing, you know, buying a property under a million right, compared to their salary, they might be borrowing a high ratio, but they're not borrowing 2.3 or 2.8 million like someone is in that price bracket where they buy, you know, 3, 4, 5 million. So that seems to be the price point that's been impacted Over five million. You get back into people having a lot of equity from their current property cash, parents helping kids, whatever team. So all I've got to say to you is, yes, it is. The rich people are being pretty much unaffected by interest rates and, as one person told me a few months ago, they want the rates to go up because they've got money sitting in term deposits and they get a much better return with higher rates. So the mortgage cliff A lot of people saying, well, it never happened. Well, I've got to tell you I think it did happen, I think, when you've got one in 40 people according to the Reserve Bank, one in 40 people that have a mortgage are behind in begging their loan repayments One in 40. That's significant. However, what has actually happened is the low unemployment has allowed people to pick up extra jobs or extra hours in their current work and they've been able to sustain and get through the 13 rate rises. For some people that has been an increase of loan repayments of two times. So that's where it is.

Speaker 1:

One of the most appalling things, one of the most appalling things I hear from real estate trainers. I've got to tell you I'm going to rant on this because I had a girl today. She's a young mum, she's got two kids, she does relatively well in real estate and she's been working with a trainer, coach, consultant who tells her she is terrible at time management and that her problem is that she can't balance life and work. And when I asked her who the person that and I don't I don't. You know, I've got too much class and respect to actually publicly shame people because it's not the way I do things right. But I'm still appalled because having a trainer, a coach, a consultant that doesn't have a family, doesn't have kids, that's footloose, fancy free and will sit there and tell a mum who's got to wake up and actually prepare lunches and then do school drop-offs and then go and lift property ring buyers up, go to open for inspections, have to manage their PA right, worry about having the kids fed at the evening, getting them showered and then being told that they're substandard in the way that they're doing things. Appalling. I would just tell anyone that's giving you advice that hasn't done the stuff themselves or is not in that position, that's what I would tell them to go do. I would tell them to go and F themselves right Now.

Speaker 1:

I have to say to you, ladies and gentlemen, appalling, appalling and appalling and I'm going to have another go at other people here. You know, if I'm dealing with someone in a coaching scenario that has actually shown elements of a mental health issue, I immediately refer them on to someone who specializes in mental health, but not in this industry. Ladies and gentlemen, that life coaching industry's got a bunch of moronic imbeciles who often have zero qualifications. No one should be giving anyone mental health advice unless they've got at least an undergraduate degree specializing in behavioral sciences and most likely a postgraduate degree, a master's degree, but we've got these fakes going out there probably done some you know one-week course that they're a coach and telling people how to run their lives and how to actually have mental wellness. Right, get real. Listen, many, many years ago, before I was in a relationship, I had a girlfriend. She was on the bags and she was a life coach.

Speaker 1:

Do I say anything else? You can tell I'm fired up. You can tell I'm fired up. I'm fired up because I'm appalled that real estate's got to be one of the few industries where you get people that are credible, people that do decent work, that run a family, run a business, run a team, that end up getting advice out of fake losers disgraceful and for the record, because people turn around say, oh yeah, but what have you got qualifications? Listen, I've got a master's degree in behavioral sciences myself, right, and it's something that I'm interested in. I've done postgraduate qualifications in coaching at Sydney University.

Speaker 1:

So, anyway, move on from that subject. Team. One in 40 delinquencies to me is fairly big. One in 40 delinquencies in mortgages. But I will say the good news is, ladies and gentlemen, that I think we are having a stock bonanza coming on, there will be a lot of stock and I know that real estate agents should be happy because they live off a volume business, right, a volume business. And on that point you know what happened today.

Speaker 1:

I was lucky. I did an auction that had a really good, strong first bid and the property sold over the reserve and it sold very quickly. And we were intelligent in the way we set it up prior, knowing what our no except less than first offer would be, knowing what our VB would be and knowing what our vendor take figure is. And when you do that and you've got a good campaign, property sold. The property sold for about 100 grand more than what the owner wanted and it sold in about a minute.

Speaker 1:

As I was leaving, the owner asked the agent to see me. I went and saw him. I thought he was going to give me a pat on the back. Well, sometimes they say, oh, he's a bottle of wine. No, he asked me whether he was going to get some sort of discount on his auction because it only went for one minute. Yet he got $100,000 more.

Speaker 1:

And you can tell I'm a little bit, let's just say, fired up today and I just looked at him and I said to him so why do you want a discount? And he said to me because you did not spend a lot of time at the property. I said are you happy with the result? He said of course I'm happy with the result. You know what I would have accepted?

Speaker 1:

I said so can I ask you is it fair to say that your criteria is judging people on how much time they spend on the job, not how good they are at the job? And he said yes, and I said so you're telling me if I had stayed here for half an hour and sold the property for 100 grand less, which you would have accepted you would have been happy to pay the full auction fee. But you want to actually ask for a 50 discount because it happened in half the time. I said I want you to think about that. You're telling me that you'll pick quantity of time versus quality. And there was silence. And I said, sir, you know this auction that you said took me one minute to do. Well, it's taken me 38 years to get it to one minute. Have a good week, everyone.