Doctor of Patience
Saturday 6th of November 2021
6 Bidders @ $10m
3 Bidders under the hammer @ 54-58 Park Place South Yarra @ $9,150,000
Max Mercuri – Jellis Craig
3 Bidders under the hammer @ 88 St Vincents Albert Park @ $11,110,000
Oliver Bruce – Marshall White
Market Turning?
In the weeks that our market has been opened again, it has been unequivocally as hot as it can be and as hot as it ever has been (see our pre-Cup 100 Auction test).
However, there was a flatness at this week’s opens, especially with B and C graders. In many ways to be expected as the PLP (Post Lockdown Pep) recedes from the frenzy evidenced pre-Cup. Is it fatigue, a recalibration on the interest rate talk or are buyers simply becoming patient again?
There are a few surface ripples and yes, the market is probably shallowing for the lesser B/C Graders, so consider that, but also look to our stories below and the A-Graders above: 6 bidders averaging $10 million on 2 homes sold via public auction this week.
For quality A-Grade PPP’s, the market we are seeing and experiencing is still running deep.
Sold at Private Auction Wednesday November 10th
Auction Report
Quote
Week One: $4,000,000 to $4,400,000
Week Two: $4,200,000 to $4,600,000
Week Three: $4,600,000 to $5,000,000
Method
Week One: EOI with no end date
Week Two: EOI with no end date
Week Three: Private Auction Wed Nov 10
Auction Day
- 6 interested parties invited
- Bidding invited @ $4,600,000
- Offer of $4,400,000 rejected
- Passed-in vendor bid @ $4,600,000
- Parties left
- 0 Bidders
Sold After 2021 $4,880,000
Bought 2019 $3,150,000
Record Price for Non-Waterfront home
AAA Grader
- Presentation brilliant
- Well negotiated buyer and seller
- All within the agent guide and quote
- Great sale campaign
Thank God that was lucky! No! Thank skill, guts and determination from the buyer and the agent and thank presentation, trust, clarity and good ol’ fashioned belief from the sellers.
Open and transparent for all parties at all times, all the way through and a record price.
Welcome Back Melbourne!
Van Gogh’s Most Iconic Paintings Swirl Around You at a Monumental, Mesmerising New Experience – With a Sunflower Infinity Room.
You Can't Handle The Truth?
$1,000,000 over the quote, over the reserve screams the headline.
“I was totally surprised” says the agents.
“I was shocked” says the seller.
How is either of those scenarios necessarily good professional practise?
At the TOP END low stagnant quoting fails many (not all) sellers.
When an agent’s all-in focus is to engage many buyers at the lowest levels, leaving no time to test the best buyers at the highest levels, how is that good practice?
When you quote $6,000,000 to $6,600,000 to attract loads of tyre kickers (yes there are many), but only one buyer shows up at $8,000,000 – how does the low quote get anything other than maybe $6,700,000 at a pass-in.
When you have 4 bidders to $6,600,000 but one bidder at $8,000,000 – how does an auction get anything more than $6,700,000, when good pre-auction quoting hasn’t tested the real buyer.
How’s it good for the seller when the best buyer hasn’t been recognised and explored?
Low quoting can and does reward the buyer and really harm the seller.
If some TOP END quotes weren’t so timid, then the agents wouldn’t spend their time (and the seller’s time) dealing with the masses who aren’t going to buy and more of their time with one or two who are.
How do we buyer agents buy so many? We don’t low quote our clients when buying – if anything it’s the opposite. A good buyer agent tries for low, simultaneously educating a client on the what-ifs at higher levels than a low quote. Come auction day few surprises.
Logic says if more buyers were educated by skilled selling agents and given time to think at higher levels prior to a deal, then competition could start from a far higher base.
How many wounded underbidders go higher after a real-life loss. Wouldn’t it have been better for the first seller, if the first selling agent had done a better job on educating potential underbidders.
Yeah, I know what you are saying, Mal and Gina we all add 10% to the quote, so in a way, we are higher.
We haven’t got time in this article to talk about the value of trust in a negotiation of the future – all we can say is: désolé la confiance est importante dans un accord
The Ask or Agent Quote is one of the most powerful tools in the kitbag, yet it is the:
- Most misunderstood
- Most abused
- Least well used
An agent quote or asking price can be more powerful than:
- Presentation,
- Marketing and method,
- The agent and seller themselves.
We feel, only the PPP’s of the home itself, would consistently exceed the influence of a great quote or ask in the final result.
Why don’t some agents tell price truths in their quoting?
Well, it’s not an exact science and no matter how hard we try, we simply cannot get it right all the time. TRUE. This year despite the best intentions and mostly good process I got a selling quote wrong, and it hurt my client and that was my responsibility. It wasn’t so much the quote (which was researched, but still wrong), it was that I did not frame their options and risks as well as I should have. So, some mistruths are genuine error and surprise.
However, for some it’s habitually not about genuine error or surprise; the lack of price truths is more a logic you see in a Jack Nicholson movie – you can’t handle the truth!
This means, the agent
- feels you can’t tell your client what might happen in case it doesn’t.
- feels you can’t reach for the stars because it’s safer to reach for the mud.
- wants to be loved for exceeding a bad number, rather than be poorly thought of for not quite reaching a higher number.
In a good seller and agent relationship, they would talk about all these options and scenarios and then the agent and seller(s) would make collaborative, fully informed, calculated decisions as to what to wish for and what to quote.
If you quote low and stay low and you have one buyer, you will get less than if you had of quoted fully and fairly at the start, ceteris paribus.
AND at the top level even in this market, there is very often only one bidder. Of the homes we were involved in below: one had 5 bidders and the other three had just one bidder.
Good Quoting, Step Quoting, even sometimes super strong quoting is ethical, legal and can be good for all parties – seller, agent and yes including the buyer.
How is it that our industry implies an offer, and god forbid a result, is not that great, when it is “only” within the agent’s guide range?
The key for a great Ask or great Quote is communication between seller and agent about goals and risks and options; and then communication between agent and buyer about goals and risks and options; and when you are on song, singing from the same hymn book, the quote becomes a powerful weapon rather than the limp lettuce it is for many sellers today.
244 Kooyong Road Toorak
0419 994 664
EOI closing Dec 9th
$8m – $8.5m
Christopher Doyle Architect – 1204 sqm – Views – Transport – Schools – Move in Ready
Are You A Doctor of Patience?
A lot of our work is for medical professionals.
In the week before the Cup, we completed 4 buy/sells.
How long did it take to find the homes, negotiate, and complete each deal?
- 14 months
- 18 months
- 6 months
- 12 months
Price, Property & Publicity
- All four homes below were between $6m-$7m
- All four were A-grader quality homes
- Two were on-market
- Two were off-market
Precincts
- The Crescents Middle Brighton
- Gascoigne Malvern East
- Grace Park Hawthorn
- Beachfront Middle Park
Our Collaborators
- 4 couples – Ages: 30’s, 40’s, 50’s and 60’s
- 3 of the 4 were buy and sells
- 2 were past clients and 2 were new clients
Brief
There was one commonality: A consistent brief.
- The PPPs were all very different, but the brief was exactly the same.
- Mal and Gina it must be right, I want a AAA grader – meaning quality precinct, quality home and quality price (meaning fair market).
- I also want to do it in a mitigated risk fashion – meaning get the changeover right, meaning in the same market. I want minimal contact with the world of real estate and no BS or pressures from either of you. I want full due diligence.
Mal and Gina we are in no rush for second best.
From two of our clients on how they felt.
Dear Gina and Mal
Well, after 18 months we have sold our long term home and bought another, which like the one we sold, ticks all the boxes.
On reflection, not compromising on the things we discussed 18 months ago got us this result:
We allowed the time and stuck to our plan even if there were a few bumps along the way (How about half a dozen lockdowns!).
We took an interim rental that provided the space we needed, in the right location for our lifestyle and commitments, so we could wait until the right property was found.
We agreed what was essential, are glad we didn’t compromise on this and ended up buying a fantastic home in the right location.
Thanks for helping us get a great outcome on both the buy and sell.
Regards M & A
Dear Gina and Mal
At the start of the process, we were excited and hopeful. During the process we must admit to feeling impatient & despondent (it felt like such a long negotiation!) but Gina and Mal were transparent, kept the lines of communication open, they continued to be optimistic and were happy to lead and also to be led by us in how we wanted to proceed.
We trusted Gina & Mal’s expertise and in the end, we bought our dream house, an awesome and exciting outcome for us.
Regards
K and M
Summary
We all like to get on with it and the world is very much about now. But one thing we have learnt from our smart clients over the years is:
Mal and Gina we are in no rush for second best.
Sunnyside Estate Camberwell
JAMES BUY SELL off-market
clear rear
clear front
This is a ripper A-Grader family home block to reno or more likely start again. North rear and sitting proud on the street, a wonderful blank canvass (no Heritage). Over the last decade or so we at James Buy Sell have bought 4 north rear blocks on Sunnyside and Currajong, the two best top of Camberwell Hill streets.
What we really like about this block is its width, its orientation and then the way it sits. Going underground is so much easier and cheaper, great light, and the front and rear has no tree issues affecting a new build (STCA). Growth has been strong on the Hill over the years and there are some great homes that started as blocks like this, so overcapitalization (within reason) seems no issue.
Our clients are selling, as after 50 years its time to move on. Off-market, quietly before Christmas is preferred. Flexible settlement and any one of Tim, Chris or Sam can get your through and answer your questions. We were only contacted and signed up over the weekend, so contracts will be requested today and hopefully ready late this or early next week. AAA grade home block.
Mal and Gina
November 6th
number of buyers taken through this week
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