How do YOU make $3 million dollars on a $3 million homebuying decision – right now in Melbourne, in the middle of a pandemic?

First the right questions?

Do YOU

• want to?
• understand how to ask the right questions?
• know how to avoid being anchored or distracted?

A $3million buyer and seller would be around $1million better off – by getting a deal 10% above the line as opposed to one 10% below the line on a buy and a sell and that’s after expenses.

In addition, if you have bought a home that performs well and doubles in 10 to 15 years as opposed to performs ok at 50% – then you add another $1,500,000.

That’s $2,500,000 in total on a $3,000,000 home buy and sell – a lot of after-tax savings.

Do YOU want to make your family home work for you?

There are 127 key points to look for in a family home – na, actually there is 33. Come to think of it there is not that many. Maybe 9.

9 good questions – 9 of the right questions will allow a really good decision – depending of course on how you react to the answers.

Are you getting great and accurate answers, but on the wrong questions?

Here are our pandemic PPPs (Price, Property, Position) guidelines for asking the right questions (same as they always are)

• Sleep test
• Mortgage v lifestyle
• Five year Flex

• Surrounding Community
• Land content
• Floor plan feel

• Price transparency
• Price point relative
• Price future demand v supply

Are you anchored or distracted?

So you’ve got a good plan but you are not executing well.

As buyer or seller agents we are doing our job well if:

We don’t let you be anchored or distracted away from what you really, really want.

Hold on Mal – what do you mean by anchored?

Question: Apart from your mindset, what is the biggest plus and the biggest minus to both a buyer and seller getting a good price deal right now, in the Inner Melbourne market, in June/July on a home say $3million and above?

Three word answer: Statement of Information

The biggest price issue for buyers and sellers in the current very low demand and supply market is the Statement of Information and how you or others anchor to it – be you a buyer or a seller.

But it’s not just the Statement of Information or sticker price. Its newspaper headlines, its water cooler zoom talk on the future of home prices and the world. We all anchor ourselves to some things – we all have biases – all our decisions are emotion – even Warren Buffet’s are emotional – he just uses better criteria set to manage the bad emotions.

The SOI says $3,000,000 to $3,300,000. But the owner paid $2,800,000 and the market has dropped.

) Oh, they need to get their stamps back. Oh yeah, I’d should help them with that. Really?

) Actually, they paid a strong price then – I couldn’t see any other prices at that price for similar homes a year or two ago. Still capital growth starts at the price they paid or I pay doesn’t it? Oh yeah – actually NOPE.

) But $3.3m seems a fair price and the bank will lend it to me.

Great – let’s give it away so we can work harder and longer to pay it back.

Why anchor yourself to that price – would Warren Buffett?

But Mal I really want to buy it and Mal I feel bad, I don’t want to offend the agent.

Ok then anchor yourself in the emotion – but you may be paying for it, for the rest of your life.

We advise buyers and sellers to consider and contemplate but don’t anchor on

• Past sales
• SOI
• Agent pressure

Nobody is saying don’t pay what you want to – just know what you want and know why and what you are paying.

What is the price on a poor $3m buy sell? Is it $10,000 or $20,000 or is it $3million?