James Buy Sell Market News with Off Markets every Monday
Yes, But How Did They Sell
Mal James
Buy Sell Agent
0408 107 988
mal@james.net.au
In the last week, we handled deals in Toorak and Brighton, which were both challenging and rewarding.
Yes, but how did they sell? The answer, I think, lies in understanding people.
First, buyers, sellers, and agents have emotions, expectations, and perspectives.
Secondly, there needs to be a bridge between those emotions, expectations, and perspectives for a coming together, an exchange, a transaction between buyer and seller.
And what is that bridge?
Money? No. That’s the fuel for the vehicle crossing the bridge or the water carrying the boat across the aqueduct, but it’s not the bridge itself.
Agent? No. The agent is the boat or vehicle, but not the bridge.
The bridge is trust
Every deal is built on trust (or the lack of it)—trust in the players, trust in the process, and trust that the result will be good for you. Trust that if you step onto this bridge, you’ll get to the other side and be better for it.
So, back to the question: how did they sell? Negotiation skills, timing, and luck all played a part. But every transaction comes down to trust. It’s the key that holds relationships together, and real estate is all about relationships—sometimes fleeting, sometimes long-lasting.
Trust in real estate is reliance on ……….to do what you feel you cannot do.
Think about Coke and a vending machine. You trust the Coke brand, not the vending machine or the mechanics of how it works. But when you’re in China, and you can’t quite understand the Mandarin instructions, your confidence in getting the happiness that Coke promises is lower. If the neon light is flickering, your trust drops further, and if you saw someone kicking the machine for whatever reason, you’re likely to avoid it and have some tea instead.
Each interaction builds (or not) the trust, and you never know if the next meeting will lead to something incredible or nothing at all. That’s why your agent needs to be excited and ready for both the challenge and the opportunity. Every detail counts in the transaction of trust (or lack of) in a home exchange, and ultimately, price reflects that.
So, how does trust in real estate work?
In the last fortnight, we completed three deals totalling over $18 million, using different methods: expression of interest, auction, and off-market. These involved six buyers (couples), six sellers (couples), and four agents—Chris Barrett, Andy Nasr, Andrew Gibbons, and Zali Reynolds from companies like Shelter and Marshall White—working across three suburbs in a multi-agent approach with Simone and me from James Buy Sell.
Key Factors
Despite some hurdles—noise issues and previous failures to sell—each home found its buyer because the process was sound, the agents were excellent, and the connections were genuine.
They built trust in the process with everyone (like the vending machine), stayed adaptable (offering mineral water as well as Coke), and found connections (the token that allows the transaction).
- All three homes were sold in a tough market, each with challenges like train or freeway noise.
- One home had failed to sell with another agent.
- All three were ready to move in and had a great feel.
James Buy Sell Market News with Off Markets every Monday
Common Denominators of Trust Building: First, the Asking Price
Money isn’t the bridge in the transaction—trust is. But the asking price is crucial in this market. It’s like the branding, the Nike Swoosh of a product, and if it doesn’t feel right, no bridge of trust can begin to build.
In weaker markets, a high asking price feels like the agent is trying to take your scarce resource—your money – that is the dominant feeling and it’s negative.
In a strong market, the dominant feeling is the fear of missing out (FoMO). In this environment, the asking price is almost seen as a positive, serving more as a guide to help you decide what to offer to avoid missing out.
- All three homes were priced correctly from the start.
- One home sold below its range, one within range, and one above.
- Buyers were never misled about what was needed to get a result.
Other Common Denominators of Trust Building
Prep:
- Homes were staged for success.
- One required the pool to be filled in, reinstating the backyard at a cost of over $100K.
- Professional marketing was used, even for the off-market property.
If you are sitting next to a smelly man on the tram, do you trust him more or less than if he had a nice cologne?
Process:
- The right method (EOI, auction, or off-market) was matched to each property’s PPPs.
- Selling a price differs from selling a property, and the deal was managed accordingly. This is an important concept.
- All were multi-agent deals with a 2% commission-sharing structure. The best agents were involved, with no by themselves junior burgers at key opens, and plenty of private inspections.
The process is the vending machine of trust (or not).
Stress:
- All three deals had moments of doubt, but none veered off course. The plans were sound from the start.
Stress weakens trust unless expectations are managed well.
Agents:
- Each agent was different: Zali and Andrew are warm and engaging, Andy is relentless with phone calls, and Chris is strategic, with impeccable timing.
- What they shared, besides my respect, was strong communication, hard work, and focus. No shortcuts.
Here is an example of how Andy built trust with seller, buyer and me.
We could not be further apart in terms of how we live our lives, nor would I imagine the buyer or the seller found Andy’s phone calls easy and smooth BUT after a while you admire his tenacity and his belief in phone call after phone call gets the job done (and truth is it did really help).
After a while you begin to like him for how he holds himself, even if you don’t fully agree with him, and if you like someone that means you are starting to trust them.
Sellers
- Relationships were built on trust—two were returning clients, and one was a first-timer.
- Even when tensions rose, we could talk openly and continue. The sellers made good decisions because they believed in the bespoke process we had executed.
Buyers
- Buyers were satisfied with the results.
- One offer was raised in an auction before the auction. The other two offers were lifted through direct negotiation.
Example of Trust Building
On a Saturday, a request came in for a private inspection outside the OFI hours. I told Andy I could meet them, as he was back-to-back. I gave the potential buyers an hour. Later Saturday evening, showed the home to their friends, another hour. I spent more time answering their questions via email and made another appointment on Monday. Over five hours in total. Throughout this, I kept the seller and Andy informed.
Time and action build trust—everyone involved could see I believed in the home and the people enough to give my time. That’s why I believe in private inspections.
“Thank you Mal. I really appreciate what you did for us with the inspections” Spring.
No, these people didn’t buy, but the trust was there for the next one, the seller saw that everything possible was being done, and Andy’s trust grew? You’ll have to ask him does he like me or is he glad to see the arse end of the old codger… that will tell of the trust.
James Buy Sell Market News with Off Markets every Monday
Conclusion
These deals came together through agents, sellers, and buyers seeking (actions) common ground and the trust that was built.
The market is tough, but the rules remain the same: work hard, collaborate, and find the connections that build trust—the bridge needed to transact.
Footnote: Have your cake (agent) and eat it too.
With well over 200 multi-agent deals in Boroondara and Stonnington and a growing partnership with Zali Reynolds at Shelter by the Bay in Brighton, I can’t see why, especially in this market, you wouldn’t consider a multi-agent collaboration for your property.
Collaboration, peer review, and consultation reduce mistakes and generate the best ideas. There’s no way I, as a single agent, could have achieved better results than what was done by these teams.
Our industry has a culture of lone wolves, secrecy, and ego, all of which tend to encourage subpar performances.
Most successful ventures in science, boards, or happy relationships use collaboration and peer review. So why not apply the same approach to the big financial and emotional decisions involved in home transactions?
We’ve collaborated and peer-reviewed (whether buying or selling) with these top agencies and many others, and we tend to get better results for all with them than against them!
Quotes on trust I like a lot
- A person who trusts nobody is apt to be the kind of person nobody trusts. – Harold Macmillan
- By the standards of the rest of the world, we overtrust. So far it has worked very well for us. – Charlie Munger
- Without trust, we don’t truly collaborate; we merely coordinate or, at best, cooperate. It is trust that transforms a group of people into a team. – Stephen Covey
- If you don’t have trust inside your company, then you can’t transfer it to your customers. – Roger Staubach
- Whoever is careless with the truth in small matters cannot be trusted with important matters. – Albert Einstein
- It takes 20 years to build a reputation and five minutes to ruin it. – Warren Buffett
- The best leaders build trust from the inside out. An organisation that does not have the trust of its employees can never earn the trust of its customers. – Scott Baradell
'Round the Auction Grounds
2024M3 Spring's 100 Auction Test is complete and the results are in: see below
Today’s Biggest Auction: With three bidders keen to get down to business, there was no need for an opening vendor bid today. In fact, the bidding was so rapid that Auctioneer Nick Johnstone needed all his addition skills and barely had an opportunity to announce the property was on the market. Bidder one was out at $5,600,000 and bidder 2 bowed out at $6,600,000. Bidder three’s final $1,000 bid took the keys to a round of applause
• Spring results show the market is still falling
• The Inner East is now the weakest market - lost its No1 spot
• Bayside & Port Phillip maintaining its low bidder level
• Stonnington is now the strongest market but still patchy
• Like last year the longer Spring has gone on, the weaker its got
• Price is the absolute brand on the home.
• Overpriced it sits. On the money it shifts
• It used to be Heritage, twas then reno's, now its price that scares
Melbourne's Top End Markets
Quarterly
Geographical
Stonnington overall stats – 25 auctions
Clearance: 68%
Bidderman: 1.6
Stonnington – Week 3 stats – 4 auctions
Clearance: 50
Bidderman: 1.5
MALVERN, 28 Elizabeth Street
Agent: Will Bennison – Jellis Craig
SOI: $3,700,000 – $4,050,000
Crowd: 35
Opening Bid: $3,700,000
On the Market: $4,260,000
Under the Hammer: $4,340,000
Bidderman: 3
The bidding began immediately, and quickly 3 joined the race. The property eventually sold to bidder 1, who bid strongly throughout. It reached reserve with no half time break.
MALVERN EAST, 46 Washington Avenue
Agent: Daniel Wheeler – Marshall White
SOI: $2,300,000 – $2,500,000
Crowd: 35
Opening Bid: $2,300,000 VB
Passed in: $2,300,000 VB
Bidderman: 0
No bids, the property passed in.
SOUTH YARRA, 28 Hardy Street
Agent: Jack Richardson – Abercromby’s
SOI: $2,300,000 – $2,500,000
Crowd: 20
Opening Bid: $2,300,000 VB
Passed in: $2,350,000
Bidderman: 1
Auctioneer Jack Richardson welcomed a crowd of 20 to the auction of 28 Hardy St South Yarra. Mr Richardson opened the bidding placing a vendor bid of $2,300,000 this was met with a $50,000 rise. The property was passed in to the sole bidder for $2,350,000.
MALVERN, 26 Cressy Street
Agent: Fiona Ansell-Jones – Marshall White
SOI: $2,750,000 – $2,900,000
Crowd: 30
Opening Bid: $2,700,000 VB
Passed in: $2,885,000
Sold After: $undisc
Bidderman: 2
Neighbours and onlookers spread across the wide Malvern Street. 2 bidders went back and forth but were unable to meet the vendors reserve and the property passed in. Sold after.
By the Bay overall stats – 38 auctions
Clearance: 61%
Bidderman: 1.3
By the Bay – Week 3 stats – 8 auctions
Clearance: 63%
Bidderman: 1
ELWOOD – Withdrawn/Method Change
BRIGHTON, 1 Wagstaff Court
Agent: Stephen Smith – Marshall White
SOI: $2,500,000 – $2,750,000
Before auction: $undisc
ALBERT PARK, 103 Merton Street
Agent: Ben Manolitsas – Marshall White
SOI: $4,000,000 – $4,400,000
Before auction: $undisc
BRIGHTON EAST, 23 Lucas Street
Agent: Nick Johnstone – Nick Johnstone Real Estate
SOI: $4,900,000 – $5,200,000
Crowd: 85
Opening Bid: $5,200,000
On the Market: $6,000,000
Under the Hammer: $6,601,000
Bidderman: 3
With three bidders keen to get down to business, there was no need for an opening vendor bid today. In fact, the bidding was so rapid that Auctioneer Nick Johnstone needed all his addition skills and barely had an opportunity to announce the property was on the market. Bidder one was out at $5,600,000 and bidder 2 bowed out at $6,600,000. Bidder three’s final $1,000 bid took the keys to a round of applause
SANDRINGHAM, 9 Gladstone Street
Agent: Paul Bond – Hodges
SOI: $2,300,000 – $2,400,000
Crowd: 46
Opening Bid: $2,300,000 VB
Passed in: $2,350,000 VB
Bidderman: 0
With no initial bids Auctioneer Paul Bond started off with a $2,300,000 vendor bid. With no bids placed he took a short break and returned with another $50,000 vendor bid, encouraging bidders to take place in the auction. With no further interest he quickly after passed the property in.
ELWOOD, 17 Normandy Road
Agent: Michael Townsend – McGrath
SOI: $2,600,000 – $2,860,000
Crowd: 25
Opening Bid: $2,600,000 VB
Passed in: $2,775,000
Sold After: $2,800,000
Bidderman: 2
A bidder on the street and a phone bidder battled it out for the top spot. After bidding stalled, two vendor referrals brought on one more bid from each party. The property was passed in to Bidder 1 on the street. Sold after.
BRIGHTON, 10 Roslyn Street
Agent: Julian Augustini – Hodges
SOI: $2,200,000 – $2,400,000
Crowd: 35
Opening Bid: $2,000,000 VB
Passed in: $2,050,000 VB
Bidderman: 0
A small group of well rugged up people huddle into the front yard to see auctioneer Julian Augustini invite competitive bidding for the home. Despite an encouraging vendor bid of $2,000,000 and a further vendor bid of $2,050,000, none of the crowd elected to take part and the home was passed in.
SANDRINGHAM, 14 Wentworth Avenue
Agent: Spiro Vasiliadis – Jellis Craig
SOI: $2,500,000 – $2,650,000
Crowd: 50
Opening Bid: $2,500,000 VB
Passed in: $2,525,000
Sold After: $2,665,000
Bidderman: 1
About 50 people shiver as Nick Renna offers the home for our consideration at an opening vendor bid of $2,500,000. One bidder obliges with a $25,000 rise but as there is no further bidding Nick regretfully closes the auction and the bidder is ushered inside to negotiate. Sold after.
Boroondara overall stats – 37 auctions
Clearance: 59%
Bidderman: 1.3
Boroondara – Week 3 stats – 9 auctions
Clearance: 56%
Bidderman: 1.3
HAWTHORN EAST, 49 Havelock Road
Agent: Daniel Bradd – Marshall White
SOI: $3,500,000 – $3,850,000
Before auction: $undisc
CAMBERWELL, 18 Aird Street
Agent: James Tostevin – Marshall White
SOI: $2,500,000 – $2,750,000
Before auction: $undisc
HAWTHORN EAST, 36 Fletcher Street
Agent: John Chartes – Thomson
SOI: $2,000,000 – $2,200,000
Crowd: 30
Opening Bid: $2,000,000 VB
On the Market: $2,280,000
Under the Hammer: $2,280,000
Bidderman: 2
Two bidders made their escalating offers straight away after auctioneer John Chartres’ initial vendor bid of $2,000,000; the property was on the market at $2,280,000, and when no further bids were forthcoming, the hammer was brought down.
CAMBERWELL, 28 Carramar Avenue
Agent: Jonathon O’Donoghue – Jellis Craig
SOI: $2,500,000 – $2,700,000
Crowd: 30
Opening Bid: $2,500,000 VB
On the Market: $2,700,000
Under the Hammer: $2,851,000
Bidderman: 2
No bidding here until after a pause in the auction. A bid at the restart may have been the only one until a second bidder popped up at the pass in call. A two-way battle got rolling and competitive well past an ‘on the market’ call at $2,700,000. They continued to lock horns until the last bid.
CAMBERWELL, 13 Royal Crescent
Agent: Lawrence Murphy – Nelson Alexander
SOI: $2,750,000 – $2,950,000
Crowd: 55
Opening Bid: $2,700,000
Passed in: $3,040,000
Sold After: $3,125,000
Bidderman: 4
This auction looks to have been busy on paper. However, despite four bidders, the tempo here was a mostly a splutter. Agents consulted vendors when bidding hit the top of the advertised range at $3,000,000 – it was not on the market as yet. A few more smaller bids and it was soon passed in for negotiations with its longtime vendors. Sold after.
CANTERBURY, 1 Athol Place
Agent: James Tostevin – Marshall White
SOI: $3,100,000 – $3,400,000
Crowd: 30
Opening Bid: $3,200,000 VB
Passed in: $3,200,000 VB
Bidderman: 0
The country road charm of Athol Place drew curious onlookers but no participants. Passed in on a single vendor bid.
KEW, 7 Rockingham Street
Agent: Doug McLauchlan – Marshall White
SOI: $2,800,000 – $3,050,000
Crowd: 60
Opening Bid: $3,000,000 VB
Passed in: $3,000,000 VB
Bidderman: 0
Auctioneer Doug MacLauchlan opened with a $3,000,000 vendor bid to a silent crowd, which remained that way throughout, causing the property to be passed in.
GLEN IRIS, 29 Kerferd Road
Agent: Jesse Matthews – Marshall White
SOI: $2,600,000 – $2,860,000
Crowd: 70
Opening Bid: $2,700,000
Passed in: $2,800,000
Bidderman: 2
Bidder 1 opened with a $2,700,000 offering; it wasn’t till after the halftime break that a second bidder spoke up with $2,800,000. Unfortunately this failed to fire things up, so the property was passed in.
HAWTHORN EAST, 6 Clive Road
Agent: Scott Patterson – Kay & Burton
SOI: $3,600,000 – $3,900,000
Crowd: 55
Opening Bid: $3,600,000 VB
Passed in: $3,700,000 VB
Bidderman: 0
Well presented period home that saw two vendor bids used to open and close the street auction.
