oc | Friday 24th January

More strategic pass-ins and bought afters today

Justin Long sells 37 Lambeth Avenue, Armadale after auction $2,800,000, 3 bidders

Justin Long sells 37 Lambeth Avenue, Armadale after auction at $2,865,000, 3 bidders. After auction – after the strategic pass-in – a common occurrence throughout Inner Melbourne today. You are going to see more and more of these in the months ahead. What’s your plan when you win the right to negotiate, but they then tell you – sorry you are 10% short!?

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At 6.00pm Saturday, the James Million $+ Inner Melbourne Clearance rate was 85% – with a noticeable difference of more pass-ins and bought after’s.

It’s safe to say, that in some cases, these were strategic pass-ins to a bidder which agents had singled out for special treatment.

We say that, because Bidderman was still a healthy 2.55 bidders per auction and the clearance rate was still over 80%.

In other words, these deals were always getting done, it’s just – did the pass-in bidder have a solid or a weak post-hammer negotiation strategy?

One really good example of the strategic pass-in was at 52 Elizabeth, Malvern (Justin Long and James McCormack) – the quote was courageous (no, we mean truly courageous, as it was strong and fair) – so on this good home it came to pass, that a sole bidder raised their hand after a vendor opening bid and it was duly passed into him. Read our James Home Rating 743/1000 – click here. Excellent post-auction negotiations.

The vibe out there again today, on the good homes, was super strong – look at 18 Campbell Road, Deepdene (Scott Patterson) – 6 bidders at $6 million. Think about it – there was $36,000,000 put on the line for one in Deepdene and $30,000,000 of it is still going to compete against you, on the next Campbell Road or similar . Read our James Home Rating 815/1000 – click here

Corr Blimey, how good was that bid me 'ol matey. 23a Chelsea Brighton sells under the hammer for $1352,500 with Mark Staples - Volcano.

Corr-Blimey, how good was that bid me ‘ol matey. 23a Chelsea, Brighton sells under the hammer for $1,352,500 with Mark Staples – Volcano – 4 bidders.

But not everything flew out of the blocks and that is why you still need to be vigilant.

We have been involved in 3 successes at auction in the last week (an unusually high successful auction amount for us of late) – one before (Adam Gillon), one under the hammer (Andrew Keleher) and one after (Tim Heavyside). On the one bought after, we didn’t even go to the auction.

We think you are going to see more and more strategic pass-ins and/or some good pass-in opportunities.

At these pass-ins, good or not-so-good valuing and good or not-so-good buyer strategies, will determine the buyer’s outcome.

Buying well in this market is about being patient, but it’s also about being ready for action and acting in a timely manner when appropriate.

Agent Quoting: Can we say that for the first time in some time, we feel genuine attempts are being made by many Jellis Craig and Marshall White agents to quote ethically.

We believe there have been clear directives to do so from the top.

Hats off to Mr Connell, Mr Craig, Mr Bongiorno and Mr McCann for their leadership!!

This is so important that Marshall White and Jellis Craig agents are supported and encouraged to do this, as they are market leaders.

What they do, many others will follow.

We are happy to publicize sincere efforts by any agency to quote ethically – let’s hope it continues – we all love some argy-bargy, but lets have ethical argy-bargy!

No Market News next week – thank you Gil for our bye round, we know he reads us every week. So, see you next on September 10th, after our freshen up and then we are here each week through the finals! Thanks for the memories Swannie! We love ya!

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Hey, don’t mind us Antony – just passing through – 72 Peel Street, Kew. Under the Hammer for $2,700,000, 3 bidders.

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Deepdene, 18 Campbell Road (Scott Patterson) – Under the Hammer $6,205,000, 6 bidders

Malvern, 5 Northbrook Avenue (Tim Derham) – Under the Hammer $4,940,000, 5 bidders

Malvern, 15 Winter Street (Gowan Stubbings) – Under the Hammer $3,510,000, 4 bidders

Check out all 27 James Auction reports – click here

The crowd at 18 Campbell Road, Deepdene watch Auctioneer Scott Patterson sell the home under the hammer for $6,205,000, 6 bidders

The crowd at 18 Campbell Road, Deepdene watched Auctioneer Scott Patterson sell the home under the hammer for $6,205,000, Volcano – 6 bidders. That is a seriously WOW result. Quote was $4,000,000 to $4,500,000 and we thought it could get $5,000,000 – but hey, we were $1,000,000 short!! That’s around $4000 per sqm for quality Deepdene land.

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Hawthorn, 17 Morang Road (Richard Jellis) – Under the Hammer $3,120,000, 7 bidders

St Kilda East, 10 Pilley Street (Robert German) – Under the Hammer $1,921,000, 4 bidders

Brighton, 23a Chelsea Street (Mark Staples) – Under the Hammer $1,352,5000, 4 bidders

Check out all 27 James Auction reports – click here

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Kew, 51 Stawell Street – Passes In $2,590,000, 2 bidders

Camberwell, 9 Derby Street – Passes In $2,250,000, 2 bidders

Glen Iris, 45 Rosedale Road – Passes In $2,000,000, 1 bidder

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What’s really important in a Negotiation – what is really important to you?

Last week in the first of our three-part series on Negotiations we covered the negotiation noise around you.

This week, in part 2 What is really important to you?, we are covering the negotiation noise within you.

In negotiations, for some of us, noise (you know stuff, any stuff) is all we hear.

For some of us noise becomes the entire negotiation game – the noise around us (from media, agents and….) and the noise inside us (our mind….).

If we can’t learn to manage that noise, then we reduce our chances of getting what we really want in a negotiation.

Why is that?

If we feel a greater priority on trying to get away from the negotiation noise, by any means, with any result, rather than seeking what is really important to us, then our focus will move to that – getting away – especially when stress is involved.

Alternatively, if we choose to stay and fight – ie, we try and win within the negotiation noise; then our focus will move to that – the fight – especially when stress is involved.

Behavioural sciences show us that – we have a higher chance of achieving what we focus on:

* In practical terms if our home buying noise focus is: not spending above $2,800,000 rather than buying the home we want, then we have a greater chance of purchasing any home at $2,780,000, rather than the home we wanted at $2,830,000.

* In practical terms if our home buying noise focus is: 800 sqm, 4 bedrooms in Hawthorn by end of the month, rather than time with our children, then we have a greater chance of making that happen, eg, 11 hour work days instead of 8, meaning less time with the children as they grow up, but in a “WOW” Hawthorn home.

In practical terms if our home buying noise focus is: beating the competition from Asia, outsmarting the agent and being an auction hero rather than a quiet deal from left field, then we have a greater chance of ……..

In practical terms on all of the above, we have been “successful” as we have achieved our mission, we have achieved our focus. But have we moved away from, or possibly not even discovered; what is really important to us in negotiating a home?

Being in the “Negotiation Noise” with an unclear mind, is very much like falling into an icy cold lake – we struggle to think clearly – we just thrash around wildly hoping that we can survive.

In our minds, during negotiations where we perceive we are not doing so well; things become hazy, things become some way off, things look like they are being taken away —- and after a while, as our stress levels build, it becomes irrelevant whether these things are actually important to us or not —- what becomes important is that we focus on something – because as humans we instinctually narrow to what we perceive as the “danger”, so as we can avoid it or destroy it.

But those “dangers” in our negotiations, the things, we at times focus on  …………..  are they the things that are really important to us?

We are walking into a crowded auction scene, we are a player (maybe) – we see something and it makes us think, yeah that’s it ……. before we know it, suddenly whatever it was, we are doing and we are going hard…..

Its early morning, we are ten minutes into our walk  (phone free) and we are thinking about a “maybe buy” home we saw on the weekend. Into our mind pops – that’s it….. that’s really the issue – but we have no pen and so we repeat it for a while and then our walk is over – but we can’t remember it. For a time afterwards we know we know something, but we can’t remember what it was and ………into the abyss….….. it goes.

Are we in the noise of Melbourne Homebuying – the noise around us and noise from within us – or are we focused on the things really important to us?

Generally speaking, if you are a negotiator in noise, you very quickly get to the next port, the next station – called Dollars or Money or Costs.

It’s the noise negotiator’s default, the “go to” for many of us, when we are not clear on what it is we really want.

We can all revert to our default when buying homes, when dealing in our businesses or when involved in family matters.

A little stress, a small loss of focus – can quickly lead to a lack of clarity and then by instinct some almost unrecognisable element of fear; and then we scan for a “safe” position. The money question, in the negative, can anesthetize any further thought on a difficult matter.

So what is really important to you?

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Is it working in a hospital in Tanzania?

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Hiking in Patagonia.

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Going to a block buster in New York.

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What is it you really want in your life – what is meaningful for you? On the family farm in Outback NSW

 or playing soccer with locals, when your car breaks down in the middle of Rajasthan.

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What do you want in your homebuying life or out of your homebuying life? (double entendre, hey).

I find it best that by knowing what is really important, then one can begin to know what their biggest purchase should look like.

By knowing what one really wants, we will be able to work through a proven process with better clarity, better focus and fewer mistakes.

By simply doing this, one will be able to begin to negotiate well.

That’s the end of this Negotiation Part 1 and Part 2 – What’s really important to you?

Next James Market News is Part 3 on the mechanics of how to negotiate well.

Let’s put the noise to one side and look at the mechanics of negotiation.

Let’s consider you are in the icy cold lake, but let’s find a boat, rather than thrashing around harder, faster, better.

Footnote:

What a load of rubbish Mal, don’t try and put your values onto me – you’ve completely let me down.  I read this article for answers to negotiating a home well and you served me up this trifle. 

I haven’t got time for this – I need to find a home and stock is limited and prices are going up.

I want answers, solutions and I want them quick smart, as I’ve got things to do, emails to check, phone calls to return.

I just want to spend $4m and if you at James Buyer Advocates can get that $4m for $3.5m, then your fees – which I would like to say right off the bat are a lot of money – actually forget it, I can do it all myself.

Mal, I don’t have a lot of time for this – I’m pretty stressed and time poor. I don’t get to see much of my kids and so I want easy access to the freeway.

Mal, I need to find something at $4m that I can buy at $3.5m, with easy access to the freeway, so as I can get to work quicker, because I don’t spend a lot of time with my kids and it’s stressing me?

Mal, I’ve got to go – if I need to borrow an extra million, I will – and to be honest, I expected you to give me some clear cut answers and a few takeaway hot tips for auction bidding.  I don’t really see your value proposition – I’m going to look on the internet for a special home and I’ll call you if we can’t get something at $5m – I’ll be able to borrow that – thank you for your time.

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For near on 10 years James Buyer Advocates has pioneered Architects working with Advocates for our clients PRIOR to purchase. Kathy Russell, Bachelor of Architecture (Hons) Melbourne - supports our James Buyer Advocate clients with professional, up to the minute architectural and design options on any property currently on the market or off market. This has been such a positive James Buyer Advocates initiative. Its personal, one on one, it’s free to all clients and tells you what you need to know architecturally BEFORE you buy. For a confidential meeting call 9804 3133.

For near on 10 years James Buyer Advocates has pioneered Architects working with Advocates for our clients PRIOR to purchase. Kathy Russell, Bachelor of (Hons) – supports our James Buyer Advocate clients with professional, up to the minute architectural and design options on any property currently on the market or off market. This has been such a positive James Buyer Advocates initiative. Its personal, one on one, it’s free to all clients and tells you what you need to know architecturally BEFORE you buy. For a confidential meeting call 9804 3133.

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