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
I'm appalled by this agent who tried to Double-Dip his Commission
Real Estate Market Wrap:
- Overall, volumes are significantly down due to the Labor Day Long Weekend. Yet, there’s been decent levels of auctions, compared to other long weekends.
- Don’t read too much into the Clearance Rates today. Because when you have significantly reduced sample sizes – it’s not indicative of what the market is really doing.
- I was appalled by this agent who wanted a Double-Header “Commission”
- This auctioneer couldn’t handle a buyer and everyone was scared to bid.
- How much money do real estate agents really make? There are 3 types.
This week I was appalled. I was appalled and I hate talking. I hate talking about our industry on the inside, about one of the things that took place. But and it was confirmed to me by a solicitor that these things do happen and I want to let you know I would never, I would never be listing my house with an agent and get that agent to negotiate the sale with a buyer if he or she is representing the buyer as a vendor as well. Wouldn't do it. And the simple reason why is that this does happen in real estate and that is you get a couple that say hey, listen, we like that house that you've got. If you can get that house for us for 1.5 million instead of1.6 million and you can save us $100,000. We'll give you our house to sell and we'll give you a higher commission on our house if you can actually do that. Essentially, if you think about it, the agent is being incentivized to get his vendor to accept a lower figure for the agent to get a double commission. It's called in real estate a double header. So, by the way, I've got to tell you, be careful. Be careful in having an agent get you accept an offer with a buyer that they're also representing that vendor. I think it can actually get complicated.
Speaker 1:And I've got to tell you I heard an absolute beauty this week from an auctioneer who told me he had and that's why and that's why, look, this guy's a youngish auctioneer hasn't really been doing it for much more than one or two years was doing an auction confirm in a really loud voice in front of everyone before the auction started, that this property does not have its land contaminated underneath. Yep, yep, that's what he said and he scared every buyer from bidding and it got me thinking. It got me thinking of all the things, all the things that I've seen over the 40 years I've been in real estate, at auctions that people do to actually get an advantage. That is one of them where you get someone that makes a real big public announcement at the start to scare everyone away. And in this instance, where I'm talking about the young agent, he didn't handle it. The young auctioneer didn't handle it. Well, he sort of ummed and ahed. He asked the agent by that time they had sent the nonverbal language to the crowd as if we're unsure, we're nervous, we're scared, and yeah, not good, and yeah, not good. I've had other ones where they, you know, ask for some really strange things that don't even exist to try to scare crowds. Of course, in Greenacre I get cars very loud doing screechies while the auction's going on, to actually let people know. This is what it's going to be like if you buy this house. Yeah, anyway, team, I've got to say to you that the stock levels are amazing. I couldn't get over. Hey, anne-mole, I couldn't get over.
Speaker 1:How would I respond to that question, angela? Angela, how do I respond to that question? This is what I say, sir. I find it interesting that you've chosen one minute before we take bids to actually ask the question. I would have thought, being such a big purchase, you would have done your due diligence today. If you have got concerns, I suggest you should reframe from bidding and that this property is not meant for you. If you, in fact, are just asking this to deter everyone else, well, good luck to you. Let's see how you go. That's how I respond.
Speaker 1:There have been decent levels of auctions, even on this weekend versus other long weekends, but overall volumes significantly down because vendors will not auction on a long weekend. Auction on a long weekend and particularly in marketplaces where there is a lot of family transactions with kids at schools. When you overlay a long weekend with school holidays, it is a higher risk for a vendor in their mind to be auctioning on that day, with many people actually leaving the city or leaving the state or even for, in some cases, leaving the country for holidays. So that's why I'm not sitting in my car today and I'm sitting wearing a green casual linen shirt because I chose not to work this weekend. Linen shirt because I chose not to work this weekend.
Speaker 1:Having said that, I've done something I've never done before. I have written to all the real estate clients I work with and let them know that I will be auctioning Sundays as well, right till Christmas time. And the reason is I simply cannot look after the existing clients I have. With the amount of auction volumes in the market, booking 15, 16 auctions on a Saturday is very challenging and that's why I've opened up my calendar on a Sunday, and that's only going to be till Christmas time. So the results today don't read much into them.
Speaker 1:When you've got significantly reduced sample sizes, the numbers are not indicative of what the marketplace is really doing. Gus is saying a house in Beverly Hills have come down 100 to 2000 people are offloading investments due to higher interest rates. They certainly are, gus, they certainly are, and I'm letting you know. To the vendors that are actually saying hey, I need to get an extra $50,000 because I want to buy a jet ski and I want to get my wife and I to go off and have a quick getaway to skiing in Japan. That's not happening in this market, ladies and gentlemen, and the simple reason why is that if a buyer doesn't get the property they want at their price, they don't haggle, they say see you later, we're going to the next one. That's what actually happens when you've got a big stock volumes that have hit the market.
Speaker 1:It is officially now a buyer's market. Everywhere bar Perth, it is a buyer's market and that is purely an equation of demand and supply. High listing, zealand, 100%. To the vendors that sit back and say hey, we want this because we want to go off and you know we want to buy this house and we want to have a bit of money left over because we want to upgrade our car. Uh, good day, mel, good day to everyone that's joined in that. This is not the market to be doing it like.
Speaker 1:Why would you worry about 20 grand shortfall. If you've got 1.5 million because that would be the equivalent of going to the casino putting 1.5 million dollars down then you say no to that offer to try and win 20 grand in the ensuing weeks and that is risky. That is very risky Because the problem that we've got with under quoting right now is that we've got the good agents that tell a buyer it's worth about a million. The buyer turns around and says well, you're saying a million, you're all crap, it's really going to go for one, two. I'm not going to come along so they don't get an audience there. I mean, realistically, there are two types of buyers that are showing up to auctions. Sorry, there are two types of vendors that are going to auction. There are those that had a buyer excite figure to generate interest and get decent price, and there are those that overcook it and get no one at the property at all and nothing happens. That is what's actually going on.
Speaker 1:Thank you so much, angela, and I've got to tell you that I found it interesting that News Corp had an article that in the last 12 months the most searched dream job in Australia was how to become a real estate agent. How to become a real estate agent was the most searched dream job in the last 12 months. Why would that happen? Why would they dream about getting into a job that has got such a negative reputation out there in society? I can only suggest that there is this attraction and seduction of making money quickly. You know all those shows million dollar listing and luxe listing and nice cars, and you know nice suits. Hey, I've got to tell you that could not be further from the truth. The majority of real estate people that are operating in Australia and New Zealand are lucky to be making more than $100,000, $120,000 a year, and there's lots of them that are making significantly less, right. There's a small cohort that are making much more than the Prime Minister of Australia, much more than half a million bucks a year, right? So, yeah, all I can tell you is don't understand why there's that, but here's the deal. Look, I've been working and training in real estate for decades. Now.
Speaker 1:There are three types of real estate agents. There is what I call the emerging agents. These are people that are new, that are emerging onto the scene. They don't make a hell of a lot of money. Then you've got your growth agents. These are people that are new, that are emerging onto the scene. They don't make a hell of a lot of money. Then you've got your growth agents. They've got through the first two to three years and what they're doing is just getting into the stage of putting on their first assistant, building their brand, becoming top of mind awareness in their marketplace. And then the third type is the pinnacle agent. That's the agent that's got brand, that's the agent that's got attraction. That's the agent that's on the shopping list, that gets lots of calls, that's the agent that's making hundreds of thousands of dollars.
Speaker 1:But you know what the problem is Most people want to actually bypass the growth phase, the emerging phase, and go straight to pinnacle. It doesn't work that way, my friends. Everyone wants to eat, but no one wants to hunt. I want to remind you of one very important term play the long game in real estate. It will take time and please remember, the day you plant the seed is not the day you eat the fruit. Thank you, tina. Tina's commenting on my shirt. I love this shirt. I'll tell you why I love it, because it's the one present. Madeline brought me back from Copenhagen and I had a beautiful day, by the way, nothing better. This was the first day I had with her in Sydney in about a year. Maddie and I went to Bondi Beach. Nothing better. This was the first day I had with her in Sydney in about a year. Maddie and I went to Bondi Beach. No-transcript, no-transcript.