Hawthorn family home - bought off-market in 4 hours
Mal James
Buy Sell Agent
0408 107 988
mal@james.net.au
GO PIES
Trust with the right people can be a good strategy
In a whirlwind transaction, buyers seized an exceptional home after swift due diligence led by Simone Clarke (James Buy Sell) and Andrew Gibbons (Marshall White). Starting with a call between Simone and Andrew, within 4 hours of meeting at property deal done. This illustrates the crucial role agents play, transcending mere negotiation skills. Poor agents cause mistrust, hindering deals. Integrity shines in contrast. Amidst agent frustrations this week, Simone and Andrew's seamless $6m deal stands out. Trust, collaboration, and tailored service, not generic approaches, fuel success. This highlights the power of trust for buyer and seller in off-market real estate.
What a truly sensational home our clients encountered! They saw it for the first time at 10:00 am yesterday and by 2:00 pm, after a rigorous diligence process including legals, building inspections, and valuations, it was theirs. This efficient operation was led by Simone Clarke (James Buy Sell) acting for the buyer and Andrew Gibbons (Marshall White) acting for the seller.
We were familiar with this street. Interestingly, we had purchased the house next door for a different client 13 years prior and had just revalued it only two weeks ago. This house bore many resemblances to that one, keeping us well-informed about the neighbourhood values.
But this isn’t just a story about buying. It’s about the selling and the difference between good and bad selling agents? And everything below is 100% real.
It starts 48 hours ago:
Simone was talking to Andrew on Thursday afternoon – doing the rounds looking for hidden off-market gems and he said let me make a call. He did (because he trusted Simone), rang back and Friday at 10.00am Andrew, Simone, our clients and I were at the home.
So, why the urgency? Well, our clients were potentially bidding on a different property the very next day. But Simone was still looking for better.
Why did Simone rock the boat and take the clients there. Firstly, she believed it could be a superior long-term choice for her clients – or it would strengthen their resolve on the other. Secondly, our past dealings with Andrew assured us of his honesty (like it is really for sale) and ability to finalize deals swiftly if our clients liked it. Trust involved again.
A brief detour: many sellers, especially those off-market, often fail to realize the repercussions of their choice of agent. We would not have heard of this home or trusted in the process with a number of other agents. The wrong agent can brand your property with a sense of mistrust and complications, deterring potential buyers before they even step in.
For instance, think about your supermarket shopping habits. Would you buy an unpriced, unfamiliar product that you’ve heard unreliable things about? Most likely not if you have a choice. You’d opt for a known brand with a good reputation and a clear price, right? Similarly, isn’t the coffee shop you frequent not necessarily about the best brew but perhaps about that friendly barista, who remembers your name and what you want, without looking up an ipad database?
In dealmaking, while some assume the badarse negotiators are the best, often it’s the clever, courteous agents, who are trusted, who finalize the most favorable deals. There is a larger-than-life agent currently running rampant in Brighton, who is so untrustworthy some buyers simply do not turn up to homes his name is on – but sellers are still believing his BS and putting his name on their homes. I’ve seen these agent types come and go, come and go and the trail of destruction they leave. They trash the brands of the home being sold, the owners and the agency they purport to represent. Let’s hope he’s gone soon.
Back to Andrew undoubtedly a clever, courteous and trusted selling agent. Time and time again, he has delivered. I have also seen Andrew from both sides of the fence – when he has been representing a client of ours in a multi-list sell and a sensational result in Lawson springs to mind. As well when we are buying off him, as per yesterday for his clients. At all times he has been really good to deal with. Trust.
Contrast that with the stuff we went through this past week. We had agents giving us dodgy pricing info, turning property viewings into some kind of twisted game (seriously, why make it so hard for us or the client to get a look in? Some agents act like it’s a secret club or something!). Then there were the ones who threw a bunch of unnecessary red tape in our way when we tried to make an offer.
And get this: some big-name agencies were like, “Oh, we can’t take your offer yet, even though it’s above the asking price and the seller’s all for it.” Why? Because they hadn’t checked in with all who hadn’t even made an offer! I mean, come on! Instead of focusing on a solid offer they’ve got on the table, they’re chasing down the window-shoppers who’d mumbled something about “keep me in the loop.”
When I am sale managing a property and a prospect does nothing but says keep me in the loop – I respond with no, I will sell it if above the quote without referral to you, if you have done nothing to try and buy this. But I say it nicely. 😎
Seriously, you can’t make this stuff up! Why do these agents do it? Because they are not worried about the current seller (you) they are working for – they are either in an air-head routine or they want to curry favour and appease any future sellers. It often leaves us and other real buyers with no trust and the current seller they are purported to be working for, with no deals or lower offers. Far more common than you may think!
We all tend to offer more in a situation of trust.
Compare your agent process to the collaboration between Andrew and Simone who seamlessly managed the circa $6m property transaction in mere hours. Reward the actions not the talk.
Let’s look at those agent-robo-prospecting calls we all get, professing their love for you and 432 others. The brain deadening and time it’s takes for “agent prospecting” leaves little or no time for deals like yesterday – no time to put 4-6 thinking hours into making a quality deal happen for the real buyer and the real seller. There is a well-known agent, who we like and robo-calls work for him and from his success many others try and copy – but they do so to the detriment of their mental health and quality of work. Robo-calls are not the only way.
Pretend agent friends and generic service no thanks – look past that and find the professional agents who offer bespoke at $2m to $20m and who have time and an open mindset to do a deal like the one Simone and Andrew did. Afterall you’re paying for it.
And there’s more. Compare your agent with Zali Reynolds of Shelter who, with Simone from James Buy Sell managing the multi-agent selling process, has sold in the last month, three homes in Glen Iris / Kew area at record prices, well above expectations whilst competing with other agents in the James Buy Sell multi-agent process – two off market and one on market. Great prices to our buying clients (who were now selling), over $100,000 in commissions to her company and the competition? All one hears is complaints: about how multi-agent is not how they do business or cries of lucky on how the prices were achieved (3 times in a row lucky).
Speaking of efficiency, don’t be fooled when an agent or solicitor claims a two-week delay for a contract. They’re digitized these days and shouldn’t take as long as a pigeon courier from Mongolia. We received ours yesterday in 90 minutes!
Finishing off our deal: Andrew managed the bargaining of a strong but fair price, which our clients agreed upon, as paying it would give surety of the deal then and there. Trust. Following some negotiations over clauses, an agreement was signed. This epitomizes the efficiency of skilled agents. Both Andrew and Simone, while asking tough questions of each other, maintained respect throughout the process, ensuring both buyer and seller were satisfied. Trust.
Our client’s trust and dedication were paramount to this acquisition. While many prospects appreciate our work, some still hesitate to engage our services, often to their detriment. You get what you give. If you want no commitment and free service as a buyer, then you get no commitment from us or realistically any competent selling agent. We all must pay our mortgages too and we cannot be all things to all people and we therefore put our time and effort into those clients who commit to us.
This incredible off-market home exchange is reward for our client’s commitment to Simone and the seller’s commitment to Andrew.
Paraphrasing a podcast I recently heard with Ange Postecoglou, trust is fundamental. If you can’t place your faith in me as a player, how can I reciprocate and collaborate effectively and put you in the team? Trust, when given to the right individuals, yields tremendous benefits in return.
Kudos to Andrew and his clients M & D, Simone and our clients P & C, as well as the lawyers, mortgage brokers, inspectors, and the behind-the-scenes team. Trust is indeed a commendable strategy – maybe you should try it with the right people.
Please note:
- We have no financial relationship with Andrew on this Hawthorn home – Simone is paid by the buyers, and he is paid by the sellers.
- We shared commissions on the sale management of Glen Iris/Kew homes with Zali Reynolds 50/50 – but any agent could have sold the homes through our multi-agent process that Zali’s company sold.
- And yes, we offered our client’s sleep tests twice and left them yesterday and they rang back and said do the deal. So, we did.
Nothing was rushed. It was timely. Nothing was missed – all due diligence we normally do was done or is clause contracted to be done.
Trust from clients and great buyer agent and seller agent work!
what our buyers said about trust, about process and about their off-market gem
Wow, what a day! We were informed of a property at 8am, inspected it at 10am and within a few hours owned the property. No stress of an auction or other potential buyers. Just Mal, Sim, Andrew and the two of us. It felt easy. We trusted their advice – this was a stunning property perfect for our family. The turn around from inspection to signed, sealed and delivered was efficient, professional and a hallmark of great teamwork. Thank you all for the great work!
Last Week
Bidderman
1.4
Stock
LOW
Clearance
70%
Auctions Attended
37
Ducks
5
Volcanoes
3
This Week
Bidderman
1.3
Stock
LOW
Clearance
58%
Auctions Attended
36
Ducks
9
Volcanoes
3
Biggest Auction
CAMBERWELL, 4 Dominic Street
SOI: $3,500,000 – $3,800,000
Sales Agent: James Tostevin
Crowd: 80
Opening Bid: $3,400,000
On the market: $4,100,000
Under the hammer: $4,515,000
Bidders: 4 VOLCANO
A flying start gave way to a 4-way grind with some impressive mental maths from James. Several times it looked like the property was sold, the final $5,000 bid bringing down the hammer. Photo: Kieran
Another difficult day as the market weakens further
Melbourne's early Spring auction market in 2023 (M3) has opened on a subdued note, revealing signs of weakening through recent results. With a clearance rate of 58% and a Bidderman score of 1.3, this comes against a backdrop of limited housing supply. Our attendance at 36 auctions provides a significant snapshot of the market. The current scenario indicates a cooling trend, a surprise given expectations of a pickup during low inventory periods. A shift in sentiment since June is evident, with increasing unreported pass-ins possibly distorting Domain's clearance rate. We're seemingly retracing 2022's challenging conditions except for turnkey homes that appeal to the Aussie Asian market in particular, However market moods change every week
Melbourne’s early Spring auction market 2023M3 has initiated on a lacklustre note, displaying signs of weakening as evident from the latest results. A clearance rate of 58% and a Bidderman score of 1.3 have been reported today, all of this occurring within a backdrop of low stock levels. We attended 36 auctions, a considerable subset of the market.
This outcome is far from strong. The overall market is currently experiencing a cooling trend, which was slightly unexpected considering the anticipation of a pickup, especially during a time of low inventory levels. This is even more surprising following the positive performance witnessed in June – but the low fixed interest rate unwinding is now playing a role.
It is important to note that any contrarian assertions about market improvement might be exaggerated or based on data that is several months old. While the market might have shown stability in June, the prevailing sentiment has shifted since then.
An increasing number of unreported agent pass-ins may well be distorting the Domain auction clearance rate, leading to an artificially inflated impression of market strength. Example of the 9 ducks (pass-ins) below only 7 were reported to Domain and yet all 3 volcanoes (strong auctions) were. Agents are 100% on good news and only 80% on the bad news. No big deal you say, but when The Age follows Domain research and claims a clearance rate in the 60s is a good market (we say it needs to be in the 70s by the way) then the clearance rate needs to be in the 60s of all auctions, not just the reported good ones for their reporting to be accurate and based on real evidence.
We are now retracing our steps to the challenging conditions of 2022, with prices regressing rather than advancing. However, it’s also worth acknowledging that circumstances can improve just as swiftly.
The present landscape emphasizes a clear divergence between two types of properties: those appropriately priced and ready for immediate occupancy, which are attracting substantial interest up to a certain point, and those homes that are outdated, requiring renovations, and are dead in the water, before the agent presses the marketing upload button.
Geography: Inner East is a long way ahead of Bayside and the Stonnington market in terms of bidder numbers and that is almost exclusively due to the strong Aussie Asian market.
If you are
- ready to move-in,
- heritage free and
- in Boroondara
you are attracting strong Aussie Asian interest and you are selling well.
If you
- need a reno,
- dated and
- in other areas, such as Bayside
you are attracting no Aussie Asian interest and you are not selling.
Let’s delve into a comparison of two distinct categories: “Volcanoes” representing properties that are highly sought after, and “Ducks” denoting properties that are struggling to garner attention.
Volcanoes (3):
BRIGHTON, 4 Wagstaff Court
Expected Price Range: $2,600,000 – $2,800,000
Sale Price: $3,100,000
What contributed to its success? A desirable location, well-aligned pricing, and move-in readiness, alongside a skilled agent and effective quoting. Appealing to the Asian Australian market.
CANTERBURY, 2 Alta Street
Expected Price Range: $2,100,000 – $2,600,000
Sale Price: $2,460,000
What led to its successful sale? Appropriate pricing strategy, even within the volcano category, still achieved a sale within the quoted range.
CAMBERWELL, 4 Dominic Street
Expected Price Range: $3,500,000 – $3,800,000
Sale Price: $4,515,000
What contributed to its success? A ready-to-move-in property, coupled with an effective agent and accurate quoting. Appealing to the Asian Australian market.
On the contrary, the “Ducks” category (9) saw a different narrative. A notable observation is that approximately 1 in 4 properties failed to attract any bidders. Generally speaking, these properties were either land-only offerings, in need of renovation, or dated. This trend was consistent throughout the day.
Another interesting trend worth highlighting is the prevalence of properties being bought before the auction, with 7 out of the 36 properties being sold prior to the scheduled auctions.
Furthermore, a substantial amount of post-auction negotiation was observed following pass-ins. These negotiations resulted in price increases of varying degrees: $30,000, $100,000, $50,000, $175,000, $100,000, and $205,000. This indicates that significant power-lifts are occurring after the initial auction phase. Do you as a buyer need to go there?
It’s quite evident that the market is undergoing a retreat in terms of pricing. This shift is palpable and observable. The increasing number of properties selling within the initially quoted price range and the declining Bidderman score corroborate this sentiment.
Wounded underbidders are less and also less inclined to persist with their efforts in the current market scenario, as evidenced by the notably low Bidderman week on week.
Not designed to be a negative, designed to be truthful so you can plan your buy and sell.
To the ones who get blamed for everything - us.
To those who understand menopause and puberty and self-discipline - whoops not us.
Happy Father's Day to the Greatest Human Beings of all.
Well we are for one day and then we return to our position of near invisibleness, boundless humbleness and never-ending gratitude of being able to serve - yes darlings I will just get my wallet!
Boroondara
Camberwell Canterbury Glen Iris Hawthorn Hawthorn East Kew
Last Week
Bidderman
1.6
Stock
LOW
Clearance
76%
This Week
Bidderman
1.75
Stock
LOW
Clearance
67%
Boroondara – 12 auctions
Bidderman: 1.75
Clearance: 67%
MONT ALBERT, 4 High Street
Sales Agent: Andrew Gibbons – Marshall White
Bought before: $undisc
GLEN IRIS, 61 Renwick Street
SOI: $3,300,000 – $3,500,000
Sales Agent: Zali Reynolds – Shelter
Before Auction: $undisc
HAWTHORN, 8 Elgin Street
SOI: $2,500,000 – $2,700,000
Sales Agent: James Tostevin – Marshall White
Crowd: 50
Opening Bid: $2,500,000 VB
On the market: $2,600,000
Under the hammer: $2,720,000
Bidders: 2
After a slow start, two parties went back and forth to bring the property on the market. The first bidder took the keys.
ASHBURTON, 3 Chamberlain Street
SOI: $2,000,000 – $2,200,000
Sales Agent: Chris Gillon – Woodards
Crowd: 15
Opening Bid: $1,900,000 VB
Passed in: $1,900,000 VB
Bidders: 0
Auctioneer Chris Gillon opened with a vendor bid of $1,900,000 however, no one spoke up so the property was passed in on the initial vendor bid.
SURREY HILLS, 61 Essex Road
SOI: $2,600,000 – $2,800,000
Sales Agent: Mandy Zhu – Marshall White
Crowd: 20
Opening Bid: $2,700,000 VB
Passed in: $2,700,000 VB
Bidders: 0
ASHBURTON, 20 Ward Street
SOI: $2,400,000 – $2,600,000
Sales Agent: Zali Reynolds – Shelter
Crowd: 50
Opening Bid: $2,400,000 VB
On the market: $2,820,000
Under the hammer: $2,850,000
Bidders: 3
Steady bidding from three buyers competed for this property. Declared on the market at $2,820,000, the winning bidder’s final offer was $2,850,000.
CANTERBURY, 2 Marlowe Street
SOI: $2,900,000 – $3,100,000
Sales Agent: Isabelle Lu – Jellis Craig
Crowd: 15
Opening Bid: $3,000,000
Passed in: $3,100,000
Bidders: 0
GLEN IRIS, 7 Irvine Street
SOI: $2,400,000 – $2,600,000
Sales Agent: Chris Cain – J A Cain
Crowd: 40
Opening Bid: $2,400,000 VB
On the market: $2,505,000
Under the hammer: $2,545,000
Bidders: 2
Two vendor bids kicked off this auction with auctioneer Bryan Cain coaxing activity from the crowd, until bidder 1 spoke up. Another bidder joined in and the result was a sale price of $2,545,000.
CANTERBURY, 2 Alta Street
SOI: $2,100,000 – $2,600,000
Sales Agent: Mark Pezzin – Jellis Craig
Crowd: 60
Opening Bid: $2,150,000 VB
On the market: $2,325,000
Under the hammer: $2,460,000
Bidders: 4
A rapid-paced auction ensued after auctioneer Michael Wood’s initial vendor bid of $2,150,000 and four bidders quickly took the price to $2,460,000, when the hammer fell.
GLEN IRIS, 20 Hillside Parade
SOI: $2,300,000 – $2,500,000
Sales Agent: James Tostevin – Marshall White
Crowd: 35
Opening Bid: $2,300,000
Passed in: $2,300,000
Bidders: 1
The opening bid secured the first right to negotiate.
CAMBERWELL, 4 Dominic Street
SOI: $3,500,000 – $3,800,000
Sales Agent: James Tostevin – Marshall White
Crowd: 80
Opening Bid: $3,400,000
On the market: $4,100,000
Under the hammer: $4,515,000
Bidders: 4
A flying start gave way to a 4-way grind with some impressive mental maths from Auctioneer James Tostevin. Several times it looked like the property was sold, the final $5,000 bid bringing down the hammer.
GLEN IRIS, 7 Ferndale Road
SOI: $3,600,000 – $3,900,000
Sales Agent: James Tostevin – Marshall White
Crowd: 100
Opening Bid: $3,400,000
Passed in: $3,700,000
Sold After: $undisc
Bidders: 3
Initially two bidders with a third joining in after a vendor referral. When bidding stalled, a potential fourth bidder asked if the property was on the market, but without confirmation, it was passed in. Sold after.
Stonnington
Armadale Malvern Malvern East Prahran Richmond South Yarra Toorak
Last Week
Bidderman
1.25
Stock
LOW
Clearance
63%
This Week
Bidderman
1
Stock
LOW
Clearance
50%
Stonnington – 6
Bidderman: 1
Clearance: 50%
MALVERN, 19 Hunter Street
Sales Agent: Daniel Wheeler – Marshall White
Bought before: $undisc
ARMADALE, 43 Hampden Road
SOI: $3,300,000 – $3,600,000
Sales Agent: Peter Vigano – Jellis Craig
Crowd: 23
Opening Bid: $3,100,000 VB
Passed in: $3,200,000 VB
Bidders: 0
After three vendor bids, and a brief mid auction break, auctioneer Peter Vigano passed the property in. An interested party moved inside to negotiate.
SOUTH YARRA, 123 Leopold Street
SOI: $3,000,000 – $3,300,000
Sales Agent: Tim Blackett – Kay & Burton
Crowd: 46
Opening Bid: $3,000,000 VB
Passed in: $3,010,000
Sold After: $undisc
Bidders: 1
Neighbours, dogs and onlookers were a plenty, but bidders few. Auctioneer Gowan Stubbings passed the property in to the sole bidder and negotiations moved inside.
GLEN IRIS, 40 Maitland Street
SOI: $3,500,000 – $3,750,000
Sales Agent: Carla Fetter – Jellis Craig
Crowd: 45
Opening Bid: $3,500,000 VB
Passed in: $3,700,000
Sold After: $undisc
Bidders: 3
Slow, dispirited bidding from 3 bidders failed to reach the reserve price. Auctioner Andrew McCann moved inside with bidder 3 to negotiate with the vendors.
MALVERN EAST, 331 Waverley Road
SOI: $2,000,000 – $2,200,000
Sales Agent: Fiona Ansell-Jones – Marshall White
Crowd: 26
Opening Bid: $2,000,000 VB
Passed in: $2,000,000 VB
Bidders: 1
The crowd came along to observe and not bid today. Auctioneer Daniel Wheeler passed the property in after opening and closing on a vendor bid.
TOORAK, 816 Orrong Road
SOI: $5,500,000 – $6,000,000
Sales Agent: Jon McKenna – Nelson Alexander
Crowd: 40
Opening Bid: $5,400,000 VB
Passed in: $5,500,000 VB
Bidders: 0
Despite Auctioneer Mark Verrocchi’s best efforts, the property was passed in with no bids made.
Glen Iris family home - multi agent on-market
Bayside & Port Phillip
Albert Park Brighton Brighton East Elsternwick Elwood Hampton Middle Park
Last Week
Bidderman
1.2
Stock
LOW
Clearance
67%
This Week
Bidderman
1.1
Stock
LOW
Clearance
56%
Bayside – 18 auctions
Bidderman: 1.1
Clearance: 56%
BRIGHTON, 7 Lynch Street
SOI: $4,550,000 – $4,800,000
Sales Agent: Matthew Pillios – Marshall White
Before auction: $undisc
BRIGHTON EAST, 20 Lucas Street
SOI: $3,500,000 – $3,800,000
Sales Agent: Halli Moore – Buxton
Before Auction: $undisc
ALBERT PARK, 11 Canterbury Road
SOI: $2,000,000 – $2,200,000
Sales Agent: Simon Gowling – Jellis Craig
Before Auction: $undisc
HAMPTON, 16 Myrtle Road
SOI: $2,700,000 – $2,900,000
Sales Agent: Paul Bond – Hodges
Bought before: $undisc
ALBERT PARK – Withdrawn/method change
ALBERT PARK – Withdrawn/method change
BRIGHTON – Withdrawn/Method Change
BLACK ROCK, 255 Beach Road
SOI: $2,000,000 – $2,200,000
Sales Agent: Michael Martin – Whitefox
Crowd: 20
Opening Bid: $2,050,000
Passed in: $2,225,000
Sold After: $undisc
Bidders: 2
Michael Martin encouraged bids starting from $2,000,000. Bidder one opened the bidding with an opening bid of $2,050,000. A second bidder joined the race placing a $50,000 bid. After some back and forth the property was passed in to the second bidder for $2,225,000.
BRIGHTON EAST, 26 Studley Road
SOI: $3,200,000 – $3,420,000
Sales Agent: Kylie Charlton – Buxton
Crowd: 35
Opening Bid: $3,100,000 VB
Passed in: $3,100,000 VB
Bidders: 0
Auctioneer Christian Hegarty closed and opened the bidding for 26 Studley Road Brighton East. The property was passed in on a sole vendor bid of $3,100,000.
ELWOOD, 99 Ruskin Street
SOI: $3,600,000 – $3,800,000
Sales Agent: Sam Gamon – Chisholm & Gamon
Crowd: 30
Opening Bid: $3,600,000 VB
Passed in: $3,725,000
Sold After: $undisc
Bidders: 2
Kids and neighbours lined the leafy street as 2 bidders fought it out. The reserve was not reached and the property passed in.
ELSTERNWICK, 78 Riddell Parade
SOI: $2,900,000 – $3,190,000
Sales Agent: Daniel Ashton – Biggin & Scott
Crowd: 40
Opening Bid: $2,900,000
Passed in: $3,000,000
Bidders: 2
An initial vendor bid of $2,900,000 was placed by the auctioneer. Bidder 1 followed quickly with a bid of $2,950,000. Property was passed in at $3,000,000 to bidder 1.
ELWOOD, 38A Foam Street
SOI: $2,700,000 – $2,900,000
Sales Agent: Ben Manolitsas
Crowd: 15
Opening Bid: $2,700,000 VB
Passed in: $2,800,000
Sold After: $undisc
Bidders: 2
2 bidders slowly went back and forth to try and secure this Elwood townhouse. The reserve was not met and the property passed into the highest bidder.
SOUTH MELBOURNE, 31 Tribe Street
SOI: $2,500,000 – $2,600,000
Sales Agent: Max Mecuri – Jellis Craig
Crowd: 30
Opening Bid: $2,500,000 VB
Passed in: $2,500,000 VB
Bidders: 0
Auctioneer opened with a vendor bid of $2,500,000. The property was shortly passed in on the same vendor bid.
BRIGHTON, 7 Kinane Street
SOI: $4,500,000 – $4,900,000
Sales Agent: Matthew Pillios – Marshall White
Crowd: 40
Opening Bid: $4,800,000 VB
Passed in: $4,800,000 VB
Bidders: 0
Mr Pillios opened the bidding with a vendor bid of $4,800,000. After rejecting a bid of $4,500,000, Mr Pillios passed the property in on the vendor bid of $4,800,000.
PORT MELBOURNE, 69 The Crescent
SOI: $2,200,000 – $2,300,000
Sales Agent: Justin Holod – Marshall White
Crowd: 40
Opening Bid: $2,250,000
On the market: $2,430,000
Under the hammer: $2,491,000
Bidders: 3
The property opened at $2,225,000 to bidder 1. 2 more bidders entered and the property was on the market at $2,430,000. It sold under hammer the hammer at $2,491,000.
ELWOOD, 30 Goldsmith Street
SOI: $2,250,000 – $2,400,000
Sales Agent: Sam Gamon – Chisholm & Gamon
Crowd: 15
Opening Bid: $2,250,000 VB
Passed in: $2,300,000 VB
Bidders: 0
HAMPTON, 10 Ludstone Street
SOI: $2,250,000 – $2,350,000
Sales Agent: Romana Altman – Buxton
Crowd: 28
Opening Bid: $2,260,000
Passed in: $2,260,000
Sold After: $2,355,000
Bidders: 1
Auctioneer Christian Hegarty welcomed the crowd of 28 to the auction of 10 Ludstone Street, Hampton. The property was passed in to the sole bidder on their opening bid of $2,260,000.
BRIGHTON, 4 Wagstaff Court
SOI: $2,600,000 – $2,800,000
Sales Agent: Guy St Ledger – Buxton
Crowd: 40
Opening Bid: $2,600,000
On the market: $2,850,000
Under the hammer: $3,100,000
Bidders: 4
The crowd gathered in the court, and after a slow start, the auction ended with 4 bidders (volcano) and sold under the hammer.
Hampton family home - 5 Bedrooms
Ready to Move-in with not a cent to spend
SOI: $2.9m - $3.1m
Jen 0418 528 988
Halli 0403 777 661
'Round the Grounds Today
Definitions & Data Points
NEW TO JAMES BUY SELL? WELCOME – THE JARGON OF 4 SEASONS and 100 AUCTION TESTS: 100 Auction Test is where we randomly select Top End homes before they go to auction and then we turn up and report on all results, so as you can get a true picture of the current Inner Melbourne Top End Market. We do it 4 times a year in the major markets.
Opening Market M1 usually sets a direction till Easter (sometimes the whole year)
May Market M2 post Easter leading into Winter trends – capricious market usually.
Spring Market M3 is Footy Finals and Pre-Cup – a major buy sell season. Can see a market turnaround either way, coming out of winter.
Christmas Market M4 is from November till Santa comes. Often the hardest market to sell in, due to oversupply relative to unsatisfied demand.
Demand – Bidderman. How many bidders per auction? A very accurate measurement of market depth when taken over a wide sample. Number of Bidders / Number of Auctions.
1 bidder average – Falling Market. 2 bidders – Rising Market. 3 bidder average – On Fire
Supply – Stock Levels. It’s a nuanced opinion measurement, more so than scientific, as there can be a flood of unrenovated homes, but the market wants ready to move in.
Clearance Price % – Many data points give exaggerated readings as agents choose to leave out the bad news (unsolds). We choose the sample before auction and track down every result. The higher the clearance rate, the more agreement between buyer and seller on price and if Bidderman is also strong this shows prices are rising.
Measurements: Under 60% falling. 60-70% some stability but easing if below 65% consistently. 70%-80% rising. 80%+ On fire.
GLOSSARY
PPP’s – All homes and all buyers have 3 characteristics. A good deal for a buyer is when their PPP’s match the homes PPP’s.
Position (land location) + Property (building) + Price = 3P’s. A buyer can adjust all three to get what they really, really want and to meet the market.
Whilst a home has 3 P’s, a seller has only 1 P they can adjust – Price. Although a good seller and agent can, prior to the sale, affect the P of Property through Presentation.
Overall there are 3P’s and Position is most often, the most important.
A-Graders – If the home’s PPP’s are desirable to many in the market we call that an A-Grader. However, it’s all the 3P’s that need to be desirable. You can have a great location, great building and be overpriced in which case you have only 2 desirable P’s – we call that a B-Grader. C-Graders have 1 or no desirable PPP’s and the only usual desirable P is Price – a weak one – this is why C-Graders are poor investments.
Volcanoes – When the market is hot you see increasing numbers of 4 or more bidders on homes. We call that a volcano. 1 or no bidders we call a duck.
Wounded Underbidders – Buyers who miss, go harder (more money) next time to avoid the hurt of missing out again. When there are multiple unhappy buyers, who have missed multiple times (wounded underbidders), the market rises quickly.
Cautious Buyers – Non-Bidders – Potential buyers who see lots of pass-ins, tend to not want to bid because their fear of overpaying is greater than their desire to buy and get out of the market.
Stales – Number and length of time a property remains unsold. The older the stale, the weaker the price (as a general rule). The more stales, the weaker the market as they clog up the market creating an oversupply.
Off-market – Homes that are for sale but are not advertised in the mainstream media like realestate.com.au. Over say $5 million there are considerably more homes off market than on market. More than ½ the homes we buy and sell are off-market.
Pre-market – Homes that some agents say are Off-market. Pre-market homes are homes coming to market but are not yet advertised and are often not really for sale at the moment.
On-market – usually refers to homes sold with major advertising say on Domain or realestate.com.au
Not for sale (and the 4 ducks) – there are many homes that are also said to be Off-market or Pre-market homes that are not really for sale. Why? Seller is testing the market. Agent is testing the market. Agent has no work. Seller wants a free valuation or some company.
For a home to be really for sale off-market, it needs to pass the 4 Duck Test.
- Agent Authority 2. Contract of Sale 3. Asking Price 4. Easy Access.
Good ól Boring Process – When you are cooking a cake – do you get your best results by making up the ingredients, the amounts and throwing them into together, hoping for the best? If you do great, but I’m not hungry. A good recipe is a good process. And in property a good recipe is 3 Questions starting with what do I really really want? If you can’t work that out, then engage a good agent. When you answer that question, you go to the 2nd and 3rd questions and make good decisions. Good decisions lead to good outcomes – for you.
Market Prices – Every price is supposedly a market price. It’s a lazy concept.
Market price is a living organism – lets imagine it’s like a human. The market is the blood, the circulatory system. The PPP’s are the bones, the skin, the main organs and we agents and agent marketing are the lipstick, perfume, clothes. All 3 – blood, bones and lipstick make up a price and its attractiveness, it’s not just the market.
Market Values – Values are opinions. All opinions have vested interests and biases. What the council, the bank, the agent, the buyer, the seller values a home at will all be different.
Last year two valuers came to a home I was looking to refinance – $4m home – 3 weeks apart the valuations were approx. $700,000 different – that’s qualified valuers – same criteria.
Market Value v Market Price – One is an opinion before the deal and one is the actual result after the deal.
Quote Range: It is thought to be an agent estimate of final price – it is not. See Quoting
Under the Hammer: is when a home is sold to a buyer under the auctioneer’s hammer that is on the street or in the home in front of crowd when we says sold – it can be just clapping his hands together – under the hammer refers to the old gavel now only sometimes used.
On the market: (different from on-market) is a colloquial term that an agent or auctioneer uses to state we are now at a level that it will be sold (now) even if there is no more bidding.
What affects markets?
Demand and Supply – yes sir re – that is what really affects markets.
Some Key Supply Variants
- Government restrictions
- Lag Times in supply of demand changes
- Builders and materials
Some Key Demand Variants
- Money – Bank credit and community wealth
- Overseas Buyers, Interstate Buyers, Migration
- Stock Markets and World Events
Predicting the Future
Economists, banking leaders and other market predictors are like horse race “experts” – entertaining but of little long-term value. In 2017, 2018, 2019, 2020 the pundits on where the market was going got it wrong, dead wrong 4 from 4. A coin toss should have got at least 2 from 4. The only pundit we listen to with respect, is the one that says they don’t really know.
Rising / Falling / Easing – Humans are herd animals.
When there are a number of pass-ins the market eases. When combined with increasing stock coming on and more stales, the market falls more sharply.
Increasing numbers of wounded underbidders and less stock the market edges up – when wounded underbidders combine with loose bank lending and tight stock and increasing migration, then market prices begin to run away.
A home can easily be 5% more or less in a week (1 bidder drops away) and parts of the market can change by 5% in a month. A property can change by 10% during the length of an auction campaign. It is very similar to the ASX in terms of its variability – it’s just not as transparent.
Individual property prices are very fluid, they are far from fixed as many think and claim.
Market Conundrum – often the best time to buy or sell is when everybody else doesn’t want to – eg counter to the markets.
Buy or sell timing maxims we live by? Assuming it’s an A-grader. If you really, really like it, buy now. If you really, really like it never sell.
Which brings us back to Doe. Doe is dear, a female deer. This is why 10,000 people read Marketnews.com.au. It’s the only property thing that makes no sense (smiley face).
Underquoting – is when an advertised price (an agent quote) is below one of
- Agent estimates of value or
- A written buyer offer or
- The Vendor reserve
An agent quote is not a valuation, it is not a fixed sticker price – a quote is seen by my industry as a vehicle to attract bees (buyers) to the honey (home) and that’s ok, if legal.
However underquoting is unethical but widespread. Underquoting has been endemic in the last week of an auction campaign in the markets of 2015, 2016, 2019, 2020 and 2021 – a new falling market may be different.
Underquoting is a badge of honour for some selling agents – for god sake there is cheering from the rafters with every $1,000,000 over reserve. It’s celebrated not put into balance or condemned in the media. Please note sometimes genuine market forces create $1,000,000 over reserve when it’s not an underquote (celebrate then) – but when it is happening week in and week out and to the same people and same companies, then they must be very unlucky or incompetent agents or they are serial underquoters.
Underquoting can work in a rising market – work for the agent and seller that is, not the buyers.
Underquoting can hurt inexperienced buyers in 4 bidder auctions BUT
In many instances in falling markets and with B and C Graders it actually hurts the sellers – e.g. duck or 1 bidder auctions.
Underquoting is fixable with a buyer education program as to what a quote is and what it can and cannot do AND moveable (not fixed) step up and step down written legal quoting AND timely stated auction reserves say ? days out from an auction AND mostly an industry desire, but there is minimal desire within my industry or the CAV or the government.
Legal Step Quoting: A term we invented to explain moves/strategies in quoting. We used to have a problem with it, but now we see it as sensible practise on behalf of the seller – so long as it is down legally and actually done. Step quoting if done legally is simply moving the written quote during the campaign in line with offers, changing or firming vendor reserves and any changing agent’s opinion of likely value.
Illegal Step Quoting: Is when the agent has a written quote, then tells you a higher quote on the phone and then an even high quote after you offer.
Legal Quoting: It is legal (and we consider ethical and professional) for the agent to quote above the seller’s reserve providing it meets the other two key criteria.
Legal Quoting: When it’s on the market and unexpected market forces take it well past expectations. Our only argument is how often can that happen to one agent or agency before it becomes obviously illegal.
Quoting even with the best intentions (and we have them) is not a perfect science, just as market valuations and your buying estimates are not.
James Buy Sell Process – Ethical quoting brings more real buyers and sellers to you:
Early Campaign: We quote to attract buyers but not below what we reasonably think the home may go for. Where the seller has a firm price, we do not quote below that price either.
We suggest the seller keeps an open mind on reserve (early days) if their main focus is to sell.
If the seller has a firm fixed reserve and it’s too high, then not only will he or she be unlikely to sell but he or she will get no feedback on price and therefore he or she could compound the selling issue down the track – a double negative for selling – eventually getting a lower price.
Middle of Campaign: We may Step Quote (change the quote, preferably up, but sometimes down to more accurately represent the sellers thought on possible reserve and/or feedback from buyers and/or if we have had an offer than has not been accepted)
Advertised final week of Campaign: We genuinely try and have the quote reflecting a seller reserve and where James Buy Sell now thinks the majority of buyers are. Please note: it is not an exact science, and we cannot predict all buyers (often buyers do not tell the door agent anything or say lower amounts – both sides can be guilty of misrepresentations).
We care about buyers and our quoting reputation. If you do a building inspection in the last week of the campaign and the reserve ends up outside the quote, please ring us and we will probably refund any professional building inspections up to $600.
The current Underquoting enquiry’s timing relates to a forthcoming election, is running into a falling market where underquoting is less noticeable.
The best way to deal with underquoting (currently) is through your own quality research or a quality buyer agent or if selling then an ethical selling agent.
Mal and Gina, so we know you as buyer agents – what’s the “off-market selling” you do?
In a buy sell, on the sell, we manage the whole process. Our focus is price, strategy, presentation, agent selection, execution, and extras, all of which are largely ignored in many off-markets, big mistake.
Price: The most abused tool in your toolkit. Get it right and it’s off to the races, get it wrong and you’re mucking out the stables. Why is so little testing done on price prior to going to market? Why is your decision made on who tells you the highest number or who sounds the most credible, when neither of those is consistently the best strategy to get the best price.
Strategy: When the average bidders at auctions in this market is 1, why is the only strategy suggested by the agent quote ‘em low and watch ’em fly at auction. Don’t worry about the sales pitch of somebody else’s miracle auction, give me the logic on why 1 bidder auctions, quoted low, are a plus for you. They are not, they are efficient for the agent and good for the buyer.
Presentation: Why is there an unwritten law that if you are selling your home off-market: it’s ok to look less than its best? Some of our strongest arguments with our off market selling clients are about spending money on presentation. You need to do it, even if the agent says oh, she’ll be right. That’s total BS. Why would we go out on a limb if we didn’t know it makes a difference – why does an agent not push as hard as we do: turnover and lack of time.
Agent selection: You really wonder about some sellers when they say I am going with such and such, as I know her, or he is a mate, or he has been ringing me a lot for a long time (why isn’t he or she ringing buyers for existing selling clients). WTF. Would that cut it at work?
Does Ross Lyon or Brad Scott make their selections on mates or who is best for the job? The coaches they replaced have been hailed as hardly done by nice guys – but Ross and Brad are very different – a clear plan, good support and they don’t select their mate or who rings them up all the time – they select who is best for the job, after they have been through a series of tests.
Why narrow the field in your first act. Wouldn’t it make more sense to have more agents, bringing more buyers and wouldn’t it make sense to keep more agents on your side?
How do you feel when you are rejected? Pissed off and angry at who rejected you? Probably – so what do you think agents who didn’t get your job are saying to a buyer when asked about your home? Let them have a chance to sell it if they have the best buyer.
It doesn’t feel like rocket science, there is so much history and self interest in how some currently sell.
Competing: What do you want agents to compete on – promises or results. Huh? Why make your final selection on glossy brochures and a slick sales presentation – it’s a pointer for sure – but when all are slick and glossy (all look so similar) doesn’t it just become a case of mine is bigger than his, choose me.
What about bring me the offers – from multiple agents? Why not test credentials in an off-market competition? Agents tell you it’s all about competition to get you the best, well get them to compete. We compete all the time.
But be careful – if you can’t manage the public narrative, then multiple agents instead of a better deal, become a fight to the bottom.
Execution: For all the not so nice things you can say about agents – there is one huge plus – their ability to focus on cutting a deal. It’s brilliant. But what happens if that deal is not in your best interests right this second? There seems to be no pause and reflect button on our agent friends at times. We encourage pause and reflect and then accept or keep going.
Extras: How can your agent take the time to give you something extra when they have 6 to 10 campaigns running this week – sorry I can’t see you at this time or this time or this time, but I can see you at 10.57 in my office for 3 minutes – and you’re the client. The buyers must be getting less. Catch 22 – if they are not full on, then do you want them?
Solution: Let them do what they do best – call and call and call and combine them with someone who can bring strategies to the table like a mexican wave, another buyer, another agent and advice to hold until we get a competing buyer and more.
Real Life: This week the off-market above was a multi-agent home where we ran a mexican wave in Marketnews over the Easter weeks and sold in the low $4m’s having been bought in the high $2m’s during Covid – nothing done to it. It’s a great home.
Multi-agent Off-market began Feb 4 with a welcome meeting:
- Selling client was a reader of marketnews – unhappy with agent advice she had received.
- She rang us. We made a presentation to be open and look at all angles.
- We were given an authority, organised a contract, produced an SOI and gave access. The 4 off-market ducks.
- Gina replaced the styling with a new style.
- We selected to go off-market with a multi-agent strategy.
- We replaced the photography.
- We ran a mexican wave in Marketnews
- Solid interest in Week 1 from 1 buyer, via an agent.
- We at marketnews produced buyer 2 with solid interest in Week 3
- Selling client and agent and James Buy Sell meeting: strategy to make it happen as we now had 2 solid and understood buyers.
- An auction (we do love them when the ingredients are there) was organised over the phone and strong competition from mid $3m’s and on the market to over $4m. Agent did a great job. The buyer bought well.
- The buyer came from a marketnews mexican wave and looked at a beautifully presented off-market home and competed against another buyer from another agent – the brilliance of multi-agent.
- The total cost to our client was less than $10,000 for furniture, touch-ups, photos, contracts etc. and total agent fee was no more @ 2.2% split 50/50 with winning agent.
- Job done: Buyer bought a rare home well and the seller got what she wanted.
- Money: James Buy Sell Multi-Agent increase was $1.25 million or 45%.
Melbourne Median increase during the same time was 7.1% (reiv)
Aspendale Median increase during the same time was 9.5% (reiv)
Increase taking local agent opinion of value and not the result was: 21% (SOI)
The price in this volatile market was a record for area property type.
This graph above shows this and is to scale.
Hawthorn
Glen Iris
Malvern
Kew
JAMES BUY SELL
our spring clients are looking to BUY your home off-market now
TOORAK big family home $18m.
Classic family home on more spacious land – in a good location – nothing to reno.
Mal 0408 107 988 Sim 0400 304 111
TOORAK big family home $15m.
New Build family home – would like a great cinema room and a big garage.
Gina 0457 835 255
TOORAK big family home $12m
Will do some work – family home.
Mal 0408 107 988 Sim 0400 304 111
ARMADALE family home $6m + $12m
2 Buyers – looking for ready to move in homes. Both currently living in Armadale and have homes to sell – swaps possible. Children at schools in the area. We’ve bought dozens of homes in Armadale – here is evidence map. Mal 0408 107 988 Sim 0400 304 111
DOMAIN – the TAN – Downsizer to $3.5m
Who doesn’t love the Tan – we love buying for clients off-market here and having a coffee at the Bot. Looking for a downsizer – will do some work. Kathy 0401 296 630.
South Yarra $6m
5 Br family home.
Mal 0408 107 988
KEW: $4.5m renovated 4 bed/garage home
GLEN IRIS: 5 bed/garage home – $3.5M
BAYSIDE $2.5m smaller family home and will fully renovate as experienced.
HAWTHORN doctors rooms will reno $3m
ALBERT PARK Investment $2.5m
Call us and be pleasantly surprised at how easy and private it can be. Mal 0408 107 988
“If you’re thinking of selling don’t look past Gina and Mal for exceptional results. It’s their business to know how to stage a house and garden, know the best time of the year to sell in different areas, and they will know the key selling points of your house (and they can arrange for all of this to happen for you). They know how to negotiate and more importantly, how to time negotiations. They know the real estate agents and know who will be the right one for you. You’re in really safe hands and most importantly they’re honest – they will advise to not sell if the offer isn’t right. They’re truly ‘on your side’ and advise you on how to get the best outcome for you. My advice: at the very least meet with them – you won’t be disappointed.”
What JAMES BUY SELL short-term advice looks like
2021 Bought - $19m
2023 Sold - $23m
Normally we say nothing - privacy - but somebody else splashed it all over the papers. In 2021 we bought for our client. This week sold for a $4m gross profit in 2 years. Same home, same agent. In fact same clients we acted for on another $4m+ profit Toorak home previously. That's a +20% uplift as the Toorak median dropped 10%.
