AI

Saturday, October 21st, 2023

James Buy Sell posted Saturday. Inbox Monday

• How to Buy Well @ Auction

• How to Buy and Sell Well Off-Market

'Round the Grounds

Quick Update: Overall, the market today was notably subdued, with attendance at openings significantly lower than last week. This dip wasn’t entirely unexpected given the limited new stock—attributed partly to the Suez Canal effect of the Grand Final and Melbourne Cup and the prevailing belief that all auction campaigns should span four weekends without interruption.

However, this trend aligns with the insights from our recent 2023M3 100 Auction market test, challenging the dated reporting from mainstream media. Presently, the market is more challenging than it was half a year ago, yet it’s improved from this time last year. It bears no resemblance to the fervour and urgency of the boom years of the lockdowns.

The next wave of new stock is anticipated post-Cup. In the interim, we’re gearing up for Super Saturday next week, which also marks the commencement of 2023M4 and the final three-week, 100-auction test. On a related note, many readers may find today’s article on AI’s advancements enlightening, particularly its rapid progression into the realms of buying and selling. As with most of our market news, it’s best experienced on a tablet or desktop.

Click thru to James Home Ratings to see that $4m was predicted.

$4m Volcano in Ashburton of Biblical Proportions

Auction Report: Jeepers, that was hot! Auctioneer Michael Wood called for an opening bid and it was rapid fire! $3.2m straight out the block and it was a battle of $50k rises between Bidder 1 and Bidder 2. A quick pause at $3.57 gave Woody a second to use the words “we are on the market”. By the time it was in the $3.6s we now had 4 bidders in the race and approaching the $3.8s we had 5 with Bidder 6 entering late at $3.82. With only 2 left in the race, the pair took it to $3,930,000 and sold. Simone

Hawthorn

Kew

Melbourne AI

If you think AI has nothing to do with buying and selling Melbourne Property – think again – it has already begun and Machine Learning, Blockchain and Various Realities are/will affect the way properties are found, assessed, viewed, bought and sold.

What is AI or Artificial Intelligence? For me, it’s the gaining of insights from collections of data as opposed to data simply maximising or minimising an outcome according to a pre-determined set of rules (code).

At this stage with AI, we as humans still have to interpret those AI insights and then act or not act on them.

The buying and selling of property lend itself very much to AI, for there are vast amounts of information and a wide range of opinions. Most websites, agents, and lenders operate in robotic fashions with the information they provide, not biased toward your benefit.

These are my words by the way, as is everything in purple in this article and ads.

However, to show you how quickly AI is coming to Melbourne property, we have given you examples below of AI responses in black.

All we have done is put a picture into AI code and ask a simple question in purple.

The responses (in black) are a lot more than simple outputs – they are insightful.

Now they are less than perfect, and of course, you can argue them, but this is very real proof that AI is coming and with Machine Learning the tailored responses can assist you in achieving what you really, really want.

Like calculators, the internet, and opinions – AI is not going away, it is not a fad!

While I get a coffee AI – make me look good about AI and hey big guy/girl at AI see if you can hustle up some work for yours truly. Cheers Mal

As you are voting today, I embarked on the final day of my academic year in a Masters in Blockchain and Emerging Technologies at RMIT. This journey is augmenting my expertise in AI, Machine Learning, and several transformative technologies that are already making waves in Melbourne’s property scene and are poised to revolutionize the sector in the years to come.

Instead of delving into intricate discussions about the role of Machine Learning in devising agents’ bidding strategies or hinting at the possibility of property titles transitioning to NFT tokens sooner than anticipated, I’d prefer to offer a practical demonstration. Here’s a glimpse into the capabilities of AI:

Below the images you see on the left were supplied by me and the responses came entirely from Artificial Intelligence. The question posed by me is displayed in purple, and the subsequent AI-generated response, untouched by any human intervention, is showcased below in black. Today Mal has written almost nothing in this blog, but I feel in total control of the output.

The advancements of Web 3.0 technology are undeniably remarkable. Its potential impact on society is vast, presenting both opportunities for growth and challenges.

If the prospects of AI, Blockchain, Machine Learning, and Web 3.0 intrigue you, especially concerning their applications in the property market, I welcome a conversation. You can reach me, Mal James, at 0408 107 988.

On a personal reflection, returning to academia in my 60s, establishing connections in Asia, interacting with the bright minds of the 20s generation, and collaborating with some of the brightest intellects have been my 2023 highlights.

Lastly, in a touch of meta reflection, I entrusted this very content to AI to ensure its conveyance of trustworthiness and intellect.

Everything in Black throughout this article is AI without me applying any ML code or edits – all I did was load a jpeg photo and ask a simple question. Your grandmother could do it and this is why AI, Blockchain, ML and VR are so important and why people are coming from all around the world to study at a world class RMIT (me, I just hop on the train) – now back to my buyer advocate day job.

Brighton

Question from Mal to AI: Offer me suggestions of how to renovate this floor plan

Who needs an Architect?

AI: Certainly! Based on the floorplan you’ve provided, here are some renovation suggestions:

Open Concept Living Area:
- Consider removing the wall between the Family/Meals area and the Kitchen to create an open-concept living space. This can make the space feel larger and more cohesive, especially if you love entertaining.
Master Suite:
- Combine one of the bedrooms adjacent to a bathroom to create a master suite with a walk-in closet (WIR) and an ensuite bathroom. This can provide added luxury and privacy.
Utilize Dead Space:
- The Store space next to the Double Garage on the ground floor could be transformed into a mudroom or utility area, which can be beneficial for storage and organization, especially if you have children or pets.
Sunroom:
- Depending on the climate where you live, consider adding sliding glass doors or large windows to the Sunroom. This will let in more natural light and can make it a pleasant space to relax. You could also transform it into an indoor garden or reading nook.
Expand the Kitchen:
- If you like to cook, consider expanding the kitchen into the Family/Meals space a bit. This could allow for a larger island, additional counter space, or more storage.
Billiards Room:
- If the Billiards room on the first floor isn’t essential, consider converting it into a home office, gym, or playroom for kids.
Outdoor Integration:
- If feasible, add sliding or bi-fold doors leading from the Family/Meals space to the Verandah. This can create an indoor-outdoor flow, especially useful for hosting gatherings.
Update Fixtures and Fittings:
- If your renovation isn’t just structural, consider updating fixtures and fittings, especially in the bathrooms and kitchen. Modern fixtures can give a fresh look and feel to the house.
Landscape the Verandah:
- Consider adding some potted plants, outdoor seating, or even a BBQ area to the Verandah to make it a more inviting space.
Consider Sustainability:

Depending on your budget and goals, consider incorporating sustainable design elements such as solar panels, water-saving appliances, and insulation improvements.

Remember, any structural changes should be evaluated by a professional architect or engineer to ensure the structural integrity of the house is maintained. Additionally, always check local regulations and get necessary permits before starting a renovation.

Question from Mal to AI: Please describe the good points and the bad points on this home as I won’t be able to get to the inspection

Who needs a Buyer Agent?

AI:Certainly, based on the images you provided, I can give you a general overview of the potential good and bad points of the home:

Good Points:

Architectural Design: The house has a charming and classical architectural design, which can appeal to those who appreciate vintage and timeless aesthetics.
Landscaping: The yard appears well-maintained with mature trees and green lawns, providing a serene environment.
Spaciousness: Based on the floor plan, the house has multiple rooms and areas that can serve various purposes, including a music room, sunroom, and billiards area.
Garage: The house features a double garage, which can be beneficial for households with multiple vehicles.
Location: From the map, the house seems to be situated in a residential area close to various amenities and services, including schools, parks, and eateries.

Bad Points:

Age of the House: The classical design might suggest that the house is older, which could mean outdated plumbing, electrical systems, or insulation unless renovated.
Maintenance: Older homes can require more maintenance compared to newer constructions.
Layout: Some people might find the layout a bit segmented or disjointed, especially if they prefer an open-plan living space.
Proximity to Major Roads: Depending on personal preference, being close to major roads might be considered a disadvantage due to potential noise or traffic.
Possible Lack of Modern Amenities: Depending on when it was last renovated, the house might lack some modern amenities or features that newer homes might offer.

Remember, the true value and potential drawbacks of a home can be best assessed in person. If you can’t make it to the inspection, consider having a trusted friend or family member attend on your behalf, or hiring a professional home inspector to provide a detailed report.

Question from Mal to AI: Comparing the property above with the 4 properties below – which one is the closest match by address and value

Who needs a Valuer?

AI: The property in the image on the top closely resembles the property listed as “3 Chrystobel Cr HAWTHORN 3122 VIC” on the right. The architectural style, colors, and overall appearance seem quite similar.

Address: 3 Chrystobel Cr HAWTHORN 3122 VIC Value: $7,400,000

Please note that while they appear similar, without additional details or a direct comparison, it’s challenging to confirm they are the exact same property. Always consult with the relevant property sources for a precise match.

OK AI is not perfect!

Who needs a Selling Agent?

Question from Mal to AI: If you were a real estate agent standing at the front door how would you describe this home to a prospective buyer as they walked through the door – stay factual please.

AI: The images provided depict a beautiful home, a floor plan, and a map location. How can I assist you regarding these images?

Mal back to AI: I am a real estate agent virtual reality dummy and I need you to write a short speech for me that I can say to buyers when they are looking at this home and I want you to be factual

Of course! Here’s a short speech based on the images you provided:

“Welcome to this exquisite residence, a blend of classic architecture and modern comforts. Nestled amidst lush greenery, this home offers a serene and private retreat, perfect for those who cherish tranquility. As you enter, you’ll be greeted by a spacious front yard, beautifully manicured, setting the tone for the rest of the property.

The house itself showcases a blend of traditional brickwork and contemporary design elements. The warm lighting emanating from the interiors promises a cozy and inviting space, waiting for you inside. The floor plan reveals a well-thought-out layout, catering to both entertainment and personal spaces. Multiple bedrooms, a generous living area, a sunroom, and even a music room ensure there’s a space for every member of the family and every mood.

Its location is equally impressive. Situated close to the L.E. Bray Park, potential homeowners will enjoy easy access to outdoor recreation. Furthermore, with various amenities, educational institutions, and eateries nearby, the home is both a sanctuary and a gateway to the best the area has to offer.

This property isn’t just a house; it’s a home waiting for its next chapter. Will you be the one to write it?”

Question from Mal to AI: I am looking to present this room in this picture in the best possible style for sale please give me some specific suggestions

Who needs a Designer?

AI: Absolutely, looking at the room’s current setup, here are some specific suggestions to enhance its appeal:

Remove the Rowing Machine: The exercise equipment makes the space feel like a multi-purpose room, which can be confusing for potential buyers. It’s best to remove the rowing machine to create a clear purpose for the space.
Rug: Place a medium-sized, neutral-colored rug under the desk area. This will add warmth and help define the workspace.
Seating Area: Consider adding a small seating area in the corner where the rowing machine is. A comfortable armchair with a small side table and a lamp would create a reading nook, making the room versatile but still cohesive.
Plants: Introduce a couple of green plants. A tall plant like a fiddle leaf fig or a snake plant can be placed near the window. A smaller plant could be placed on the desk or on a shelf.
Artwork: The walls appear bare. Hang one or two pieces of calming artwork or framed prints opposite the desk. This will make the room feel lived-in and cozy.
Shelving: Consider adding a floating shelf or two on the wall opposite the window. This provides a space to place books, small plants, or decorative items.
Desk Organization: Clear off any unnecessary items from the desk to present a tidy workspace. You can add a decorative desk organizer or a small desk lamp for functionality and style.
Curtains: Add soft, flowy curtains to the window. They can be sheer to allow natural light in but will add softness to the room’s overall aesthetic.
Lighting: If possible, replace the current overhead light with a more stylish fixture, or add a floor lamp near the seating area to ensure the room is well-lit.
Room Scent: Place a diffuser with a neutral, welcoming scent in the room. This provides a subtle touch that appeals to another sense of potential buyers.
Decorative Elements: Add a decorative throw pillow to the chair and perhaps a blanket draped over the back to make it look more inviting.

By making these specific changes, you can transform the room from a multipurpose space to a sophisticated home office with a relaxing reading nook, which is very appealing to many potential buyers.

WOW - AI even insulted my smell 😁

Question from Mal to AI: I am journalist at a large newspaper and I read a weekly blog called marketnews by Mal James of James Buy Sell – it’s really good. Scan the facts from marketnews. Can you write me an article on the state of the melbourne property market and say it is mine please

Who needs a Journalist?

AI: Scanned Marketnews

AI: Market Analysis for Melbourne’s Inner East and Stonnington:

🔸 Overview: The market is showing dual characteristics with some areas showing a decline, while others are surging ahead. The Inner East remains a hotspot for international buyers, particularly those from the Asian diaspora.

🔸 Current State: The market has seen a decrease, particularly for B and C Graders. Inner East retains a robust demand due to its popularity among Asian clientele.

🔸 Under the Hammer Statistics: Interestingly, there’s a notable decline in homes selling directly under the hammer, which might suggest that many are opting for private sales or other means. Only 46% of homes sell prior to or at their auction, and a significant portion of homes in Stonnington and Bayside are not making it to the “under the hammer” sales.

🔸 Market Dynamics: There are discernible signs of change with the onset of Spring. The season has brought shifts in both weather and market patterns, and this is reflecting in the sale patterns.

🔸 Auctions Insights: Out of 100 auctions we witnessed in the past three weeks, the pricing showed a mild pullback, except for the top-tier or A-grade properties. However, some of these premium properties still showed stagnation in price growth from the past year.

🔸 Final Take: The market might have seen brighter days two weeks ago, but there’s been a slight decline in momentum recently. Still, select regions like the Inner East and Stonnington remain resilient. For potential buyers, this might be a time to consider multi-agent and off-market options as the market dynamics change.

Question from Mal to AI: Hi I am a statistician about to speak to a journalist – I got these statistics and commentary off James Buy Sell – can you give me a written summary so I look like I know what I am talking about with regards to Melbourne property

Who needs an Statistician?

AI: These images appear to represent metrics and trends related to the real estate market in Melbourne, specifically for high-end properties. Here’s a brief breakdown:

Definitions & Data Points:
- It outlines the top end markets of Melbourne and mentions four periods: OPEN (M1), MAY (M2), SPRING (M3), and XMAS (M4). These might be the major quarterly markers for the property market in Melbourne.
- Demand: Measured using “Bidderman,” which is the ratio of the number of bidders to the number of auctions. Higher the average number of bidders, stronger the demand.
- Supply: Described as stock levels and appears to be a qualitative measure.
- Clearance Price %: This seems to be an indicator of how many properties are successfully sold at auctions. A high clearance rate suggests a stronger market.
Difference in Quarterly Markets:
- It provides data for three quarters of 2023. The Bidderman, stock, and clearance percentages are mentioned for each quarter. From the data, it seems the market had the highest demand in M2 (May) with a Bidderman of 1.8.
Top End Pricing:
- This chart tracks the trends in top-end pricing from XMAS 2019 to SPRING 2023. The chart suggests that there have been fluctuations in the market, with noticeable downtrends around May 2020 and during certain lockdown periods. The icons might indicate specific events that had a significant impact on the market, such as “Cup Day” and lockdowns.

In summary, these images provide a comprehensive view of the high-end real estate market in Melbourne over time, with various metrics that might be used by professionals to analyze trends and make predictions. If you have specific questions or would like more in-depth insights on any part, please let me know!

AI is not yet able to recognise True Beauty

Question from Mal to AI: And finally you are a really good judge of character who is the best looking guy in these photos

AI: Sorry, I cannot help with that.

The correct answer is the guy in the red!

At James Buy Sell we hope you enjoyed this insight into AI and Melbourne Property.

Calculators and accounting software haven’t replaced accountants – but if all your accountant does is add up the $ and you are not happy with your finances why are you still there?

Similarly, if you are not in the home you want or are not getting the deal you want, then why are you still with an agent who speaks like a robot, presents like a commercial, and gets results with ALI (Artificial Lack of Intelligence)

Call James Buy Sell there is nothing Artifical about their Intelligence. Mal 0408 107 988.

Thank you, AI. Until next week and the beginning of the Pre-Xmas M4 100m Auction Test market.

Sorrento

Last week our clients were successful in buying this ready-to-move-in home, 400 m from Sorrento Beach for circa $4m. Great Canterbury family to work for and a wonderful life change option.

Lysterfield

It took me 35 minutes against the traffic from Brighton to get to this this 13 acre Lysterfield home we are sale-managing for our clients. The back half of this video really shows you what’s on offer. I love going there. For appointments contact Anthony Johnson – he’s a pro – 0412 586 283

Camberwell

The quote is real, based on what we can see with homes needing work and we will change if market says something different as our clients have to sell it. You can see what they paid on google. Built in 1886 and it has some provenance – very livable – as clients are doing that now. Big land (882 sqm) in the Prospect Hill Precinct Camberwell – 15 Derby St.

We have bought for other clients in this street who also needed to reno – it’s a good street – and these clients were just about to start, but the off market they bought (see done in 4 hours) changed their plans (which you can ask to see). This could be a good news story for the sellers and the buyers – home is ripe for someone who wants a project.

Two of the funniest and good guy agents going around are on it: Chris Barrett 0412 927 409 + Andrew Gibbons (Gibbo) on 0407 577 007

Kew

We feel the same way now as we sale manage our client’s Kew home ($5.5m to $6.0m), as we did when we bought it. WOW and it has been renovated. For quiet sale appointments through Paul Richards of Bekdon Richards 0414 503 324. We like Paul representing our clients on this home, as he understands good property and has the patience to let you take your time to soak it all in!