7 figure Attraction Agent

EXPOSED❗Shifty Commissions & Incentive Schemes. Real Estate Market Wrap 🗞️

• Tom Panos - Real Estate Coach & Trainer

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⚠️ Vendors: Use THIS Incentive Scheme to find out how much your house will truly sell for


05:18 – Today has been my most successful auction day in years. Clearance Rate: 11/11 

Buyers all met the reserves – no adjustments

One property SOLD for $700k over reserve 

FOMO was in the market today. But one hot day doesn’t make it Summer


07:31 – The Zero Commission Listing


I'm heading to speak at a few conferences in Europe. See you in a few weeks!

Speaker 1:

Real estate commissions. I want to touch on this. The vendor asked me what would I do as a commission scheme if I was selling my house. And let me tell you what I would do. What I would do is I would actually say to an agent when they came over what do you reckon you'll get for me? Let's assume they said we'll get you 1 million.

Speaker 1:

I know real estate agents are often optimistic when they're trying to secure your business. So you know what I would say to them you reckon you can get a million, million. And I'm going to, hey, mark Mark, congratulate you. I want to. You know, I just finished an auction with you and I'm going to congratulate this guy. I've worked with him for a long time and I just had a look on realestatecom. He's done 291 sales. Now I've got to tell you that's an extraordinary effort. That's an extraordinary effort by any real estate person in this country. So what would I do? I would go 1% up to a million and then what I would do is I'd say over a million, give me a bonus, give me 10% over a million. I would say I'll give the agent 10%, and then what I would look at is look at the reaction. Look at the reaction of the agent, because if the agent is confident that they can get the $1 million or thereabouts, they'll say I'll take that, but if they're not, they're going to want to muck around with your 1%. That's what I would do. I would use a bonus scheme and if you are using a bonus scheme, you make sure the bonus scheme is agreed to at the time you sign up the listing. Because I can tell you, right around Australia I've heard of instances where real estate agents on the day of the auction set up a bonus scheme right. But you need to understand that's not right, because usually the agent has had four or five weeks using a term called vendor management or some agents call it conditioning, which is a disgraceful word for it, and what they do is they, you know, erode the vendors expectations down and then, in a vulnerable scenario, on the morning of the auction, they'll put in a bonus scheme having the lower reserve, whereas if you set it at the time of the listing you can say, no, we agreed at 1 million. That's what I would do with a fee.

Speaker 1:

Right Now, with real estate commissions, I have to say, if you're a vendor that's watching this, be very concerned about a real estate agent that drops their commission in a negotiation with you when they're at the house trying to secure the business. And I'll tell you why. You see, the first sign is that if a real estate agent is prepared to cave in on their fee, they're going to be caving in to the buyer that negotiates, because it means that that agent is not a 10 out of 10 negotiator. That's the first thing I'd be really concerned about. I'd be concerned about the fact that the agent might have dropped their commission by that. The agent might have dropped their commission by let's assume, the normal fee is 2% and they're prepared to do it at 1.5, they're dropping it by half a percent. That is, in fact, they're dropping their fee by 25% of the total fee.

Speaker 1:

Now I want you to visualize. This is the same person that's got to go out there and negotiate with the buyers and try and get buyers up. And I've got to tell you my experience is that some buyers are significantly better negotiators, significantly better negotiators than actually the agents. So you need to hire a good negotiator and a really big sign is the way that they manage their fee at the time that you secure the business. So the cheapest agent and the best agent is generally not the same agent and I've seen a lot of vendors lose tens of thousands of dollars at the time of sale because they tried to save half percent when they signed up the listing. Beware of it. The good news is, often people are negotiating and worried about the fee. Like, realistically, you're only going to be paying a fee when you're happy with the price that you get at the time of sale.

Speaker 1:

This has been my most successful auction day in years. I'm letting you know today is 11 out of 11, but that is not the main thing. The main thing is it was 11 out of 11, with the vendors not having to adjust their numbers down. The buyers met the reserves I was given. In fact, there was one property that ended up selling, I think, around $700,000 more than expected, more than the reserve. I think. That was in the eastern suburbs, randwick, and I said it last week.

Speaker 1:

We're in a patchy market because last week I think I did less than 50% and there are weeks where I've sold one or two out of 10. And today it was this. Please don't jump into any conclusions 11 out of 11 is this week's result. Next week's result might be less Well, next week's result will be zero, because I'm actually not here. I'm going overseas, to the UK to speak at conferences and whilst I'm there, I'm going to get a bit of European sun in some other countries, including Greece.

Speaker 1:

So I need you all to know one thing, and that is that today I hadn't seen it in ages. There was fear of missing out. There was fear of missing out. Now I'm not quite sure whether people are thinking to themselves that, as we come into spring over the next couple of months, whether there's going to be a lot of buyers out there and what people are doing is securing their real estate future by going in before them in winter. I don't know whether that's it. Having said that, I did have great properties. I don't know whether that's it. Having said that I did have great properties, now I want to let you know.

Speaker 1:

I've just been told by a vendor that they that they did it at zero commission. Get ready for this. The agent said I don't have any listings at the moment. I need to stay active. If you're prepared to invest in the marketing which they were, I'm happy to do it at no commission. The vendor said to me have you ever heard of a better deal than that. This vendor asked me what I think about the agent charging no commission and I said well, look, this agent obviously has got no properties. He's doing it for free with a view of meeting people coming to open for inspections. He's doing it getting some marketing on realestatecom and domain and he's essentially doing it with the view that, listen, if you've got buyers, you can work with them. You'll sell that, you might pick up another listing.

Speaker 1:

I don't like real estate agents that do that, and the reason why is that I believe the agent doing it for free and I've done it before. I've done things for free and sometimes I think you don't go 120%. I think you don't go 120% when you do something for free, I think you go 100% right, but, team, I wouldn't do it. Anyway, team, you can tell I'm losing my voice. I'm pretty excited. I'm off to the UK for an overseas tour and then I'm going to get a bit of sun. See you in a couple of weeks.