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Real Estate Market Wrap 🗞️ AI & Real Estate: A New Era Begins

• Tom Panos - Real Estate Coach & Trainer

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1:31 – Market Reflections & Avoiding Operator Error

3:33 – AI’s Impact on Real Estate & Pricing

5:10 – AI Transformations in Buyer Search

8:15 – Future Market Predictions & AI Developments

9:47 – 4 Steps to Future-Proof with AI

My Clearance Rate: 3/5 SOLD

Tom Panos:

You know what they want. They want data. They don't want guesswork. Prospecting is being flipped by AI.

Tom Panos:

It's raining here and all these people are just not leaving. They're just hanging around. They're hanging around and that's normally a sign that if a buyer doesn't leave by the way, this is one thing I've learned in real estate with options If a property doesn't get sold and the buyer is a little bit short, but they're hanging around and they don't get into the car and leave, that is normally a sign that there's still more money that they're prepared to pay and they don't want to leave thinking that someone else might actually take their property. However, that's not what's happening right here right now. There's just like 20 people with their umbrellas just sitting around and yeah, hopefully another 100% day. Well, let me tell you, ladies. And yeah, hopefully another 100% day. Well, let me tell you, ladies and gentlemen, before I went overseas, I think I had two days at 100% when I came back. I think I've had 100% last week and I think the week before, but it all came to an end today. That 100% success rate all came crashing down and, in fact, today I did five auctions and I sold three out of five, and I have to say to you that I thought all the feedback I was getting from people since I've come back from overseas is the market's not great, but when I was looking at the results that I was getting, I thought it was really really good. But now I'm beginning to think to myself that maybe I had motivated vendors and the right properties during that period, because you can happen right and we did talk about during the week I had the president of the Real Estate Institute of New South Wales and we covered a theme called operator error.

Tom Panos:

Operator error is agents that do auctions that make mistakes in the process, and the biggest mistake that they make is that they're not adjusting the guide based on the buyer intel that they're getting early in the campaign to ensure that you're getting the right buyers coming to the property. And, of course, when you're adjusting, you can be adjusting up or down, like you're not going to like. If your first week of an auction campaign has 30 contracts picked up and like everyone's interested at the guide that you've been talking about, I've got to say to you that you've got a low guide right, because there's no way in the world there's something's got to be wrong if you rock up to an auction and find out on the auction day that there are 30 people I mean agents can turn around and say, hey, wow, look at what I've done, I've got 30 people registered. Hey, listen, you don't need 30 people registered, you need two good people registered. Let's be really, really clear, right? But I'm going to put that aside.

Tom Panos:

Oh, listen, under quoting and price creating has been the theme of the day, because I know in the media that's been covered and I've got to tell you I said it last week listen has ChatGPT solved the whole problem for buyers and expecting what prices? And that is that buyers can now just on their phone, walk into an auction property, say I'm at 47 Smith Street, I want a bid on it. Can you please give me the three closest comparable sales to this property so I don't overpay? Man, that's it right, that's it. So Sam Curry says I've never seen so much underquoting as there is in Melbourne. Yeah, hey, aris, good to see you. I've got to tell you, sam, apparently in the press, sydney's the capital of underquoting.

Tom Panos:

But I've got to tell you on the AI front, think about this for one moment. This ain't happening in three months, this is happening right now Buyer search is here. A buyer can quickly just go on to chat GPT and say give me all homes in the inner west under 2.5 million that are close to schools. It's become so much easier for a buyer. Do you understand that? Buyer search has begun, right? Buyer search has begun and I don't know what's going to end up panning out with this. I mean, I've got real estate agents that are telling me that they think that they're going to be putting properties before they even launch, putting it on their websites, thinking that buyers can actually get access to them before going to the big portals right, there are some.

Tom Panos:

What's this guy doing? Like this guy, I can't believe it. He's got all the space in the world and he's about to smash a car. It's a real estate agent, just go, okay. So buyer search is here. You want to talk about the next thing.

Tom Panos:

Pricing is being fact-checked. Vendors are using chat GPT to challenge price guides. You know what they want. They want data. They don't want guesswork. Prospecting is being flipped by AI. I mean, I don't know whether it's just real estate. This AI is just perfectly built for our industry. But I've got good news for you AI won't replace you if you're a real estate agent here, but I'm letting you know it's going to replace an agent who relies on not using AI. That's what's going to happen, right? Buyer search, chat, gpt. No one is making Tom Powell's redundancies, sam.

Tom Panos:

Well, I've got to tell you, listen, I'm closer to the end of my career than the start of my career. You know, today I've got to be honest with you. I wasn't going to work. In fact I actually outsourced some of the. It's my brother's, my young brother. We're having his memorial tomorrow. He passed away, as you know, obviously it's a hard. Weekends are very hard. We've got my brother's memorial service at Rookwood Church and Rookwood Cemetery tomorrow and I've got to tell you, man, I've got to tell you.

Tom Panos:

You know, there was an agent that rang me up today at three o'clock asking me all these questions and that I said listen, listen, man, I just got auctions here. I said I'm not in the mood. You know, I keep thinking about my brother, but my mum gets really upset on these days and this guy act as if he just pretty much just ignored what I said and just continued his conversation. I'm going to block that guy. How shallow. Anyway, next, you know what else AI is doing Buyers. You know some buyers. They don't even know what they want, but AI is working out what they want. Do you understand? Ai learns what a buyer wants and actually says buy this one or look at this one. I showed up today. That's right, sam. That's what matters. Clients are getting smarter, sellers are becoming AI savvy and this is fantastic because, as far as I'm concerned, an educated buyer and an educated seller means that we've got more transparent conditions and I'm absolutely over the moon with ChatGPT and I'm also letting you know, I think, 5.0.

Tom Panos:

Chatgpt is coming out next week, big week. We've got the Reserve Bank which is meeting. We've got the Reserve Bank which is meeting and up until today, I've started to think to myself that maybe they shouldn't actually take rates down, because having four weeks where 100% is being sold was saying to me that man, if rates go down again, things are just going to go ballistic. But after seeing today and after talking to some other colleague auctioneers, I actually realised the market is not as good as what I thought. It's not bad, it's not bad, but I think to myself that come September, which is only a few weeks away.

Tom Panos:

So ChatGPT5 has just been released. Thanks for letting me know. I'll upload it today. But I've got to say to you, with stock levels going up, the supply is going to go up. It's probably good that rates go down and I think the odds are that they will go down, because take real estate aside general cost of living and economy is really, really hard. And the other thing I'm going to say is four steps to future-proof yourself with AI to all the real estate people. Number one is I want you to learn to prompt like a pro. Learn to prompt like a pro. The majority are using chat, gpt, ai as if it's Google, right? Anyway, team, that's the end of the day. Am I working tomorrow? I don't think so. No, I'm not. I'm not working tomorrow. Tomorrow is dedicated to my brother. I've got to tell you, do you know, with my brother, you know when they say say I loved him, mate, he's my best mate, like he's a brother, my brother was my best mate.