Welcome to a James Buy Sell NFT – these are non-fudgeable-tales we send out to clients, to show what is happening behind the scenes in the Inner Melbourne Market.

Nothing has been changed.

We thought you may be interested because it really highlights the points we were making in last weekend’s Marketnews about Your Buy or Sell price being 3 markets (macro+micro+individual), not just 1, the macro market.

Let’s set the scene

Last Weekend

1. A couple of days ago clients whom we had bought for twice (family home and investment) contacted us – they had found a better, bigger family home not too far from where they currently lived.
2. We explained to them that yes it was a great home, yes it suited them but NO they weren’t going to be picking up a bargain within the quote range.
3. We spent our time explaining why this was an outlier, despite no recent sales in the street over $4m, despite the home being a plain Jane/Jim and 11 years old and despite land size being just average.
4. We also spent time giving advice that we had to be bold and brave (rather than lambs to the slaughter), as this home was worth fighting for and very different from other homes we had said no to on their behalf over the journey.
5. We got up-to-date pricing and thoughts on their current homes, pest and building, legal’s and lots more due diligence as well as other agent and our own intel.

Wednesday 14^th September (yesterday):

6. The local stock market was tanking – down another 2.6% at the open of yesterday.
7. It felt time to go.
8. Let’s blow up the auction quoted $4.2m to $4.5m, scheduled for this Saturday with our $5m budget, if we can. This is not about underquoting – it was not underquoted. The comparables could justify the quote (in this market) and it was on the market with the first bid above the quote – ours at $4.9m. The agent is a high quality and smart agent who knows how to play this game – we felt we had to go.

Why was this home good and why take risks (of overpaying)?

We rated it 732 and an A-Grader to $5.2million. This is a small part of what we said in our confidential report to our client supporting the rating and values:

There are very few homes I walk into and go Wow.

This home has tremendous WOW – and yet no views, it’s modern from a volume builder, the finishes are good but not exceptional and many would describe it as a plain Jane or plain Jim.

It is not – it is far from the norm, for what the modern family is dished up.

Yet it is almost exactly what a modern family wants – maybe perfection would have been a better garage to laundry to kitchen connection – but it is still pretty good.

Why is this home so good? ……

It’s the fundamentals of PPP ………So why is this so great – why the Wow – it’s a living breathing growing family home because it has a lot of flexibility – but even more it has a real understanding of what a 22nd Century family needs.

Price – It will be strong because once you’ve bought this – the only changes you will need to make in the next few decades are maybe some paint and tiles – nothing else and that has to be worth a lot in the world of rising costs.

Brilliant WOW forever family home.

So, to yesterday’s fight – with every hour our client was becoming more and more nervous about the markets and their budget was edging down not up, even when it felt this home had real heat in it.

And so pulled the trigger.

Go early, go hard, fire the torpedoes.

There was hesitation – but we had to push – we felt it was appropriate – they believed and we had said no before on others.

But the questions kept coming back – Mal how could you be saying do this, when the evidence I read in the papers says the market is f…. and many homes are not selling.

Our response was simple: That’s the macro and we agree with 27 from 39 homes we covered last weekend passed-in, BUT price is more than the MACRO – the MICRO PPP’s market is still incredibly powerful in a few selected circumstances AND on top of this, all our intel on this INDIVIDUAL market, said it had every chance to be an explosive volcano and you will need to think $5.2 million and then some.

But Mal the agents are saying $4.2m to $4.5m – are they lying?

No mate they are doing their job – they can justify the quote under the rules – and they are working for the seller, not us the buyer. Their clients want a sale, and the market is fickle – many are not selling when the price guide is wrong. All this aside I am telling you that our experience says this will be a s…..fight – in fact read the text I’m sending you to show my sincerity.

“This is worth fighting for. As promised. You can pay us when you can and if at any stage you believe I have made an error then you can choose no charge and I will not fight you. I acknowledge you are sticking your neck out. We are too. This home is worth it”

They agreed to go and to go now. 3pm yesterday

It is always hard to recommend going at $4.9million when you feel part of your role is to save money – but you never help a client if they really, really want it and you don’t do your best to get it and we felt we were shy on the freight.

We put $4.9million on a contract at 3pm and in time sent it to the agent with a 9pm deadline or we walk (and we would of).

Two hours later at 5pm the agent rings and says we are on the market and you have 3 challengers Mal….we are going to an 8pm auction.

I knew it was a wow property, but in 2 hours against a tight deadline, in down markets (property and stock) to have 3 competitors…. Mmmmm… we felt then and there it was game over, done and dusted. But you keep going because sometimes there are miracles.

We talked and texted our clients and you could feel the pressure was excruciating as they kept seeing the aftermath of the stock market, they kept remembering the $4.2m to $4.5m quote AND we were now advising them that if they wanted to buy this, they needed to perhaps go $1million over the quote that enticed them there in the first place. It was getting too much. We sent this text.

Now we have done our job in part.

We would like to say no home is worth pushing past the point of marriage fragility.

If there is regret after we buy it is not good.

If it’s no after you have tried – then ok it’s no and that ok.

We move on.

We encourage the push – but its still only bricks n mortar and there will be another.

This is great but not at any cost.

With respect

Mal and Gina

8.15 pm last night:

9. The private auction in the boardroom opened on our $4.9million bid.

10. It went up in $25,000 bids from the 3 other bidders present to $5.5million and then in various amounts between $5,000 and $10,000 till it was knocked down at $5,860,000.

11. As we suspected we were to come fourth, we didn’t even get a podium.

The market is weakening – but that is the (macro market) – in Melbourne now, as will always be the case, if immigration lives on, if the PPP fundamentals are strong, then they will come (the micro market) and if the circumstances are right, there will still be some sauce on top (the individual market).

Your price = macro + PPP fundamentals (micro) + individual.

Just another day on the asphalt in our great city.

This is a great home – the process was transparent – the result was expected.

A parting text from our client as I drifted off to sleep (I’m getting old)

All good – why I got you both involved. We are relieved as we never stood a chance. Makes the Surrey Hills volcano look cheap! Thanks for all your counsel & advice – it was all spot on! 

This was James Buy Sell NFT normally reserved for our clients only – it all happened yesterday, Wednesday 14/8/2022, and nothing, not one thing has been changed.

It’s 100% true – the price powers of 3 markets not just 1!

Mal and Gina