7 figure Attraction Agent

New Auction Laws in VIC & NSW - Don't Panic! 🗞️ Real Estate Market Wrap

• Tom Panos - Real Estate Coach & Trainer

Share episode

Send us a text

00:46 – The pros and cons of the New Auction Laws in VIC and NSW
11:20 – Where did this recent influx of stock come from?
13:10 – Black Belt 2026 and Real Estate Gym Kick Start is on 10 Feb 26

My Clearance Rate: 7/12 SOLD

SPEAKER_00:

I reckon one thing they need to do is create a law that buyers that walk into properties at open for inspections on Saturdays or auction day, there's no need to open up the fridge. Like, what doesn't matter what the people that live in the property have in their fridge? How will it affect what you do? Why open up someone's fridge? How will it affect the price that you're prepared to pay? Like, whether they have soy milk or full fat milk, whether they've got booze in the fridge or not. Why does it matter? I get really, I told the buyer today, like, I said, why do you care what's inside that fridge? Why do you care? And he just stared at me and he went, ha ha, and just walked away. When they're making the new laws in Victoria and in Sydney regarding auctions, they might at the same time say to people, don't open up fridges. But let's talk about that for a quick moment. Let's talk about that because I've been traveling a lot. Yesterday I had to do a charity auction uh in Adelaide that had no reserve. And I have to tell you, it was a very emotional auction because the person that donated the land was someone that had lost a three-year-old child, and he felt he had to do it. He wanted to donate this to charity, and the charity was called Variety because they are a children's charity. What an incredible fella. Incredible. I really had tears in my eyes when he told me the story because I asked him, what's your connection to the charity? And the way he sort of said it about losing his three-year-old. Anyway, and by the way, whilst we're talking about those stories, another sad story, I'm involved with Wingman as an ambassador, and they are a sponsor of a charity called Destiny Rescue, and they go out, Destiny Rescue, mainly in Southeast Asia, stopping pedophiles, right? And I had a dreadful, very, very, very sad text message that's come in. I'm gonna actually put it up because I want prayers. A 12-year-old got molested and has now got AIDS. This happened last week. Devastating news, devastating news. A team, the underquoting laws. So in Victoria. During the week, there's a proposal, and let's I want everyone just to calm down because I've got all these real estate agents saying to me, Tom, what are we gonna do this week when buyers say, what's the reserve? What's the reserve? Let's be very, very clear. The legislation in Victoria and New South Wales is proposed legislation that's got to go through a process. So, right as we speak, you operate with your current legislation, right? That's the first thing. The second thing is, let me tell you, the proposal to have a reserve price made available seven days before an auction has got some advantages. And the advantages are if a buyer uh hasn't done a pest and building inspection prior to the seven days, they can wait till the seven days to then decide. To then decide what it basically means is that you're gonna have a week, you're gonna have one week to move really, really quickly, really, really quickly. The street, John, that that property sold in Strathfield, let me give it to you, is Auburn Road, number 49, Auburn Road, number 49 Auburn Road. Now I want to let you know, ladies and gentlemen, that the positive of having the reserve made available prior is that it's going to save people bidding on properties that they had no chance. Let me tell you what the cons are. The cons are that you're forcing a buyer to quickly try and get done things done in the last week. Number one. Number two, and this is the big one. Listen to me carefully. I auction, I don't know, close to a thousand properties a year, every year, and I've done so for many years. Auction is actually a very small part of my life. A lot of people ask me, you know, is that all you do? Auction is five percent of my life. 95% of my life is running my digital subscription business, running my conferences, and I'm pretty much out of Sydney pretty much Tuesday, Wednesday, Thursday every week. I'm away from home over 200 nights a year, and I have been for decades, and that is Monday to Friday work, conferences. But I've got to let you know, I've done a lot of options, and I've got to tell you I sit and talk to an owner at two o'clock, and I ask him, What's your reserve? And they give me a reserve of two million, and then I say to them, Have you got any flexibility? If you don't get two million, will you negotiate? They often say, No, we want two million. Let me tell you, five minutes later, the property gets sold for 1850. This happens all the time. You need to understand that vendors often do not put their numbers on the table because they want a little bit of wiggle room. Often there is no trust there, right? So what they're saying is, I'll keep a higher number and that way I can come down. Herein lies the biggest issue, right? The fact that a vendor generally is adjusting reserve not just the last week, but the last minute. The first thing. The second thing, I want to let you know that if you look at the contractual relationship in real estate between agent and principal, the vendor pays a real estate agent a fee to sell the property at the highest possible price. Now, if you turn around and say, even if situation number two, where I'm saying they adjust the reserve isn't an issue, you got another big issue. And let me tell you what that other big issue is that what buyer is gonna want to be bidding a lot more than the reserve, and they're gonna know the reserve. Think about that. Buyers don't want to feel like I'm paying so much over the reserve, which in turn means that that legislation, if it went through, could potentially disadvantage vendors, and that's what I believe the Real Estate Institute of Victoria is making noises about, right? So 100% we need a solution. We need a solution that can work practically now. But a friend of mine bought a property in the low twos the other week. The property went to auction, and you know what happened with that property? It wasn't underquoted, it was overquoted. It was overquoted, and what happened is because it was overquoted, there was no excitement with buyers and no buyers showed up. So then what actually happened is my friend went, and he's very opportunistic, always looking for a good buy. He went there two days later, and he bought the property for around 300 grand less than the price that was being quoted. And I've got to say to you, because there was no other buyers, he bought it well, and he was prepared to go significantly more, and it's a bloody good buy. It's a very good buy, right? So the point I'm saying is that I've got to tell you, underquoting is one part that needs to get fixed. Overquoting can be very, very detrimental to getting a result for a vendor. And this vendor's probably lost a few hundred thousand dollars that they could have got in the marketplace. So, team, all I'm gonna say to you is work needs to be done as far as I'm concerned. The drawing board's gonna need to go back to and fro, and they're gonna need to get an industry-led consultation because no plan survives collision with reality, and that's a fact of life. And I have to tell you that real estate agents live in a world where nearly on all occasions, when they list a property, the owner is wanting more than it's worth, and a real estate agent needs to be able to go through the process to help work out roughly what it's worth, and in that process, that vendor gets educated. That's called vendor education. And the one of the things that makes it so complicated is there's no recommended retail price in real estate, and that's what makes this so hard. But I've got to tell you to all the real estate agents that have rung me getting nervous about things, there's nothing to get nervous about if you do the right thing. And I had a real estate agent saying today that wanted to go that high is that I was paranoid that I would be done for underquoting. I mean, think about that, having a real estate agent hoping that the property doesn't sell for a high price in case they get into trouble. I've got to tell you this and listen to me very carefully. Listen to me very carefully. Real estate agents, don't worry if you're doing the right thing. You've got nothing to worry about if the occasional result goes for overs. What they're looking for is systemic behavior. Number one, understand that. Number two, make sure you are doing the right thing, because I've got to tell you, you can't escape. As I said in an earlier video that I did last week, you gotta act and behave that everything that you're doing is being seen. And the reason I say that is that with AI and technology now, they can easily have a look at what you put a property in at the back end, what it sells for, and then ask for the file. So, team, be very mindful of it. I have to say that the uh fear of missing out that existed in October appears to have subsided. The craziness has sort of gone, and I think a lot of it has to do with the fact that after the inflation numbers came out at the end of October, and then all of a sudden the whole mood and the sentiment about auctions, sorry, about um talked about auction. I'll talk about auctions in a moment because that's got to be the most talked-about real estate topic this week across Sydney and Melbourne, is then they announced that rates wouldn't be going down, and that sort of changed the mood. And then the view was not only is it not going to go down in um November, Melbourne Cup Day, that was a scheduled meeting, but it's not gonna go down also early in the new year. And that all of a sudden did two things. It actually got buyers to actually stop getting carried away with fear of missing out, but it also brought in a lot of stock. There was not a lot of listings coming towards this end of this year, and I was talking to all the auctioneers, and then all of a sudden, an onslaught of stock hit the market. And when you've got a cooling sentiment and you've got more listings, that basically means that you get a more softening of prices. However, you still have submarkets, and without a doubt, like if I to give you a summary, under one and a half is still pretty good. One and a half to two and a half to three, four mil, that price point there is not great. Over five million is pretty good. So that's roughly a bit of a summary of what actually happened. Now. Now the last thing I want to let you know, I'm just so over the moon to all the real estate agents there. We launched Black Belt. It's a transformational real estate coaching program for real estate agents in Australia and New Zealand, and within five days of launching it, we've got an oversubscription of people that have applied. And what I'm going is now going to be speaking to each of those people to work out who's going to be accepted in the program. So I'm letting you know, ladies and gentlemen, Black Belt and Susan has put the link in there as well. That's the first thing. Black Belt, we're going to be meeting every quarter. Monthly accountability, numbers are coming in. We're going to help real estate agents be their best version of themselves in 2026. And I've also got to let you know the real estate gym is having a major event on February the 10th. We've got some of the great real estate agents across Australia that are going to be speaking. We've got Sam McLean, who I believe is one of the best AI thought leaders in the business, she'll be speaking. We've got Dip Chittiak. I don't know what he writes, but it's way over 5 million and somewhere under 10 million. He's going to be, we've got an emerging panel of agents that are doing more than a hundred deals a year under 30 years of age. Under 30 years of age. Four of them. They're going to be on the panel. We got John McGrath, and that is for my real estate gym members, and it is only$39. We want you to start off your year very strong. It is the Real Estate Gym Kickstart. And I am letting you know our real estate gym program, which is my standard program, has been for over a decade, is now open for business. We'll be taking memberships. I think it's only$65 a month. And you have me as your coach and join the thousands that are on that great program. Get your training 247. So, team, thank you. And you know where I'm heading off right now? To watch Rufus DeSolve.