Market Marginally Down but Two Paced
100 Auction Spring Test 2023M3.
We attended, witnessed and reported on 100 auctions over $2m in last 3 weeks
Market in a Minute: Spring M32023: Melbourne’s $2m+ housing market sees decreased auction transparency with only 20% selling under the hammer. Prices slightly retreat, particularly for B and C Graders. Inner East remains a hotspot due to Aussie Asian demand, while Bayside and Stonnington face challenges. Market unpredictability is evident as buyer urgency has left all but the Inner East.
When they say Mal, the market is a lot better than you say. Quote them this statistic. “Today, none of the homes covered in Stonnington and only 1 in Bayside were sold “on the market” and under the hammer. That is 1 in 18 or 6% were real street auctions. WOW!
You need to at least consider multi-agent on market and off-market alternatives. The Spring Market has changed – no question about it.
Signs of Spring 2023M3: The dawn of spring brought a discernible shift in both weather and market patterns.
Under the Hammer: There’s a decline in homes selling under the hammer – meaning proper auctions where it’s on the market and sold!.
- 45% of homes either sell prior to or after auction.
- 35% remain unsold.
- Interestingly, only 20%—or 1 in 5—homes are sold under the hammer on the street acoss the 3 weeks. Today, none of the homes we covered in Stonnington and only 1 in Bayside were sold “on the market” and under the hammer. That is only 1 in 18 or 6%. WOW!
This implies auctions lack transparency on the street in 4 out of 5 instances.
Spring 2023: Market trends in Spring 2023 reveal a slight pullback in pricing, except for the A-grade properties. However, even some of these show stagnation in price growth from the past year. This trend is evident with a rising number of properties selling within their initial quoted price. A diminishing Bidderman score reinforces this sentiment.
Market Analysis: The market, began weakly two weeks ago. It deteriorated further last week but showed some improvement this week, ending comparably to May’s statistics. Yet, the Bidderman statistic appears frail, primarily outside the Inner East stronghold. Thus, we deduce that the market is barely stable for top-tier properties and slightly waning for others. Clearance rates, wavering around 60% all year, indicate a borderline market.
Bidderman Metric: This tool, evaluating the average bidders per auction, suggests a shrinking market depth. It has dropped from 1.8 in May to 1.4—reverting to early 2023 levels. Fewer bidders seem to be competing vigorously in recent times, a sentiment highlighted by the consistent drop in the Bidderman score.
Stock Levels: They’re low, but that is the new normal.
Pre-auction Trends: The uptick in properties sold before their planned auction indicates seller wariness. Remarkably, 20% of homes over the past three weeks were purchased pre-auction.
Post-auction Trends: With 1 in 4 (25%) of homes selling after a pass-in, intense negotiations have often led to substantial price escalations. Price hikes post auction have varied: $30,000, $100,000, $50,000, $175,000, $100,000, and $205,000. This emphasizes considerable market adjustments following the primary auction. Is this a situation a potential buyer should explore?
Clearance Rate: Settling at 65%, Melbourne’s Spring 2023 auction landscape echoes the hurdles of 2022, a tough market.
Why? Predominantly, the prevailing interest rate environment, particularly affecting high-end properties that necessitate mortgages.
Property Divergence A to C Graders: A clear dichotomy exists. Move-in-ready homes are garnering attention, while outdated/needing reno’s aren’t enticing buyers. The location is a factor too—Inner East properties outshine those in Bayside and Stonnington, buoyed by the robust Aussie Asian demand.
Volatile Market: Market volatility is common during transitional phases. Presently, the market exhibits signs of change. While Inner East stands strong, Bayside remains unpredictable, and Stonnington is flat lining.
2023M3 Spring Learnings from the Stats
• Homes: not all the great homes will be coming to market as smart sellers can see the current is not strong compared to say 18 months ago. There may be a few hidden in the off-market.
• Values: The home has to be exceptional and more than likely in the Inner East for you to be valuing a home higher than comparables of a year ago.
• Bidding Strategies At Auction: Most buyers are told by selling agents and think that auctions are straightforward and transparent – the stats show a completely different story. There is a 4 in 5 chance that your targeted home will NOT be sold under the hammer and that you will have pressures before and/or after with pass-ins. Amounts buyers are being asked to pay whilst the only buyer are significant. The most common number of buyers on the home you want, outside the Inner East, is 0 or 1 (including you). So a buyer agent (whilst a cost) could save you a lot more than a huge uplift before or after auction.
• Offering a ready-to-move-in property • free of heritage restrictions, and • located in the Inner East, you’re likely attracting significant Aussie Asian attention, translating to swift sales – so long as you get price quote and agent right and why recommend a multi-agent off-market campaign prior to auctioning.
On the contrary, if your property: • requires renovation, • appears outdated, or • is situated elsewhere, like Bayside, then expect negligible Aussie Asian interest and a challenging sale. This is where a multi-list off market campaign over a longer time frame could be a better option.
11 Foote St Albert Park evidencing market movement
11 Foote (Kaine Lanyon auctioned this week – he also auctioned the home when we multi-agent sale listed it in 2020)
Points being made:
1) A brilliant result (2020) is hard to improve on in a short time frame of 3 years, even with a great agent
2) A-Graders have parking – this does not and that puts a potential cap on the growth of your investment
3) With the ups and downs of the market pre, during and post covid our graphic below is spot on for an overall $2m+ market snapshot
April 2020 - $2.602m
Sep 2023 - $2.620m
South Yarra family investment bought after 498 days
Last week we talked about a home our clients bought in 4 hours. This week our clients bought an exquisite home after a search that took 498 days. The brief was specific, our clients crystal clear and our team was hardworking and patient until the perfect home appeared. This was the first home we tried to buy with the current brief in 498 days. So one 4 hours and the other 498 days with 2 clients in a week
28 Ralston St South Yarra is a bespoke small family home. It’s moody and intimate, it’s curated and awakens the senses.
If you are looking for a city pad, a bolt hole, a place to come back to before you jet off again then 28 Ralston is a one for the trophy room.
Paris, New York, Melbourne the architectural thought and finishes stack up in any of those places, as does the floorplan and the overall amenity. If I was going to live in an inner city pad, I would consider this one in the upper echelons of my choices – due to its PPP’s.
Position – some road noise off Punt Road and the street is not one of South Yarra’s finest are the only issues I can see warranting comment on the negative. ON the positive, what are you not close to? It’s effectively Domain or South Yarra and everything you can access such as Doman Road and Tan, Train and Tram, Fawkner Park and River, Chapel Street and ……
Property – floorplan – it works upstairs with the voids making not the widest double fronter feel like it has some space and the main bedroom has some separation from the other two bedrooms. If a couple lived here, there are many options for guests and entertaining and if a family lived here, a sofa bed downstairs in the study or the sitting room could suffice for occasional guests.
It also has multiple sitting/living spaces inside and outside and we can see this as a great entertaining abode – I like the nooks and crannies feel. Some may not – but I do.
The finishes may not be for everyone as they are many (some could be replaced over time) and the floor being dark can be brightened with rugs for those desiring more light.
The downstairs light situation overall however, is limited as this home has been built on the north boundary but for many, it may only be noticed in the kitchen so updating some finishes could resolve this.
Garaging is a plus and not as common as you may think in this area – good width and a second car would find an on-street park in all but the busiest shopping times.
Price – it’s had a few price incarnations and it may not be the world’s best investment as it will tend to date somewhat – it already has – so as an investment there are better, especially when you are starting at this price point in this street. However, as a home with some interesting features and nothing further to do or spend, it will require effort if you have competition as more and more are looking for lock-n-leave ready to move in.
Ralston St to the MCG (8 mins) to the Airport (29 mins) to Portsea (90 minutes) when you type into Google – it’s well located to everything and is the quintessential urban home.
Mal, Gina & Sim Sep 1 2023
… The process was complex and challenging, particularly as we did not wish to disclose our identity to the vendor. However, with Gina, Kathy and Mal’s help, we were ultimately successful in acquiring the property for a price that we were happy with.
We employed Mal in 2018 to help us acquire our neighbouring property. Mal came up with a strategy to make an approach discreetly in order to acquire the property at a sensible price. The process was complex and challenging, particularly as we did not wish to disclose our identity to the vendor. However, with Mal’s help, we were ultimately successful in acquiring the property for a price that we were happy with. Mal did a great job of formulating and executing the strategy, and particularly of managing the vendor and others who were assisting us with the offer. His advice was good and his execution was excellent. I would strongly recommend him to others looking for assistance in acquiring a property. M&S
Difference in Weekly Markets
First Week
Bidderman
1.4
Stock
LOW
Clearance
70%
Auctions Attended
37
Ducks
5
Volcanoes
3
Last Week
Bidderman
1.3
Stock
LOW
Clearance
58%
Auctions Attended
36
Ducks
9
Volcanoes
3
This Week
Bidderman
1.4
Stock
LOW
Clearance
67%
Auctions Attended
27
Ducks
8
Volcanoes
2
Difference in Quarterly Markets
2023 M1 Open
Bidderman
1.5
Stock
LOW
Clearance
64%
2023 M2 May
Bidderman
1.8
Stock
LOW
Clearance
69%
2023 M3 Spring
Bidderman
1.4
Stock
LOW
Clearance
65%
Difference in Geographical Markets
Stonnington
Bidderman
0.9
Stock
LOW
Clearance
45%
Bayside
Bidderman
1.2
Stock
LOW
Clearance
63%
Boroondara
Bidderman
1.8
Stock
LOW
Clearance
79%
This Week's action @ JAMES BUY SELL
Brighton
SOLD BY JENNY DWYER OF BELLE
Hampton
SOLD BY NICOLE GLEESON KAY & BURTON
South Yarra
'Round the Grounds
Biggest Auction (Private) - over $12.6m
Sold by Mark Sproule (lead agent), Sophie Su and Scott Patterson of Kay and Burton
Just in case you thought it was all doom and gloom at auctions currently – 3 bidders fought for this home in a private auction last week at 54 Fellows St Kew – with the final bid tipping the hammer over $12.6 million.
This result really does confirm the two paces of the market. It’s Inner East, it’s ready to move in and it’s marketed to sell. Bang! Job Done.
Inner East
Camberwell Canterbury Glen Iris Hawthorn Hawthorn East Kew
Opening M1
Bidderman
2
Stock
LOW
Clearance
81%
May M2
Bidderman
2.1
Stock
LOW
Clearance
80%
Spring M3
Bidderman
1.8
Stock
LOW
Clearance
79%
Boroondara – Week 3 (9 Auctions)
Bidderman: 2.1
Clearance: 100%
KEW, 31 Derby Street
SOI: $2,500,000 – $2,700,000
Sales Agent: Stuart Evans – Marshall White
Before Auction: $undisc
GLEN IRIS, 46 Montana Street
SOI: $4,200,000
Sales Agent: Jesse Matthews – Marshall White
Before Auction: $4,790,000
GLEN IRIS, 41 Mills Street
SOI: $2,300,000 -$2,500,000
Sales Agent: Jason Brinkworth – Marshall White
Crowd: 70
Opening Bid: $2,620,000
On the market: $2,650,000
Under the hammer: $2,820,000
Bidders: 4
A free flowing auction led by swift bidding and a quick on market announcement. A hug for the couple, Bidder 4, when the hammer fell in their favour.
HAWTHORN, 23 Rathmines Road
SOI: $2,950,000 – $3,245,000
Sales Agent: Stuart Evans – Marshall White
Crowd: 65
Opening Bid: $3,000,000
On the market: $3,450,000
Under the hammer: $3,766,000
Bidders: 4
Three bidders ensured this auction was a bold fight with decisive bidding. Just as it appeared one would have the upperhand the arm wrestle shifted. The opening bidder eventually prevailed.
KEW, 17 Hillcrest Avenue
SOI: $3,600,000 – $3,900,000
Sales Agent: Nicholas Franzmann – Marshall White
Crowd: 35
Opening Bid: $3,700,000 VB
Passed in: $4,045,000
Sold After: $undisc
Bidders: 2
Two bidders went toe-to-toe in $25,000 rises after a slow opening. Continuing in $10,000 amounts after breaking through $4,000,000 the property eventually passed into Bidder 2. Sold after.
HAWTHORN EAST, 9 Jaques Street
SOI: $3,000,000 – $3,300,000
Sales Agent: Scarlett Hang – Marshall White
Crowd: 30
Opening Bid: $3,200,000 VB
On the market: $3,550,000
Under the hammer: $3,700,000
Bidders: 2
Slow bidding that did however move along with purpose. Announced on the market at $3,550,000 and steadily climbed until one bidder ran out of $5000 rises.
SURREY HILLS, 6 Payne Street
SOI: $4,100,000 – $4,500,000
Sales Agent: Tamsin Curcio – Shelter
Crowd: 200
Opening Bid: $3,950,000
On the market: $4,710,000
Under the hammer: $5,070,000
Bidders: 3
A large crowd was met with auctioneer Mike Millington encouraging rapid fire bidding. Three bidders competed for this property, causing it to fall under the hammer at $5,070,000.
CAMBERWELL, 11 Elaroo Avenue
SOI: $2,800,000 – $3,080,000
Sales Agent: Nicholas Franzmann – Marshall White
Crowd: 60
Opening Bid: $2,800,000 VB
Passed in: $2,800,000 VB
Bidders: 0
Sold after: $undisc
The crowd gathers under the carport as the rain comes down. With no activity forthcoming the auction is wrapped up on a single vendor bid. Sold after.
KEW, 31 Fernhurst Grove
SOI: $2,900,000 – $3,190,000
Sales Agent: Richard Winneke – Jellis Craig
Crowd: 20
Opening Bid: $3,000,000
Passed in: $3,200,000
Sold After: $3,250,000
Bidders: 2
Bidder 1 jumped in immediately with a $3,000,000 offer, followed by a second bidder. However, the subsequent bids were not enough to get the hammer to fall, so the property was passed in. Sold after.
Stonnington
Armadale Malvern Malvern East Prahran Richmond South Yarra Toorak
Opening M1
Bidderman
1.1
Stock
LOW
Clearance
52%
May M2
Bidderman
1.3
Stock
LOW
Clearance
65%
Spring M3
Bidderman
0.9
Stock
LOW
Clearance
45%
Stonnington – Week 3 (8 Auctions)
Bidderman: 0.5
Clearance: 25%
MALVERN, 39 Johnstone Street
SOI: $2,850,000 – $3,100,000
Sales Agent: Lachlan Castran – John H Castran
Before auction: $undisc
PRAHRAN, 1 Closeburn Avenue
SOI: $2,200,000 – $2,400,000
Sales Agent: Fraser Cahill – Marshall White
Crowd: 30
Opening Bid: $2,200,000 VB
Passed in: $2,200,000 VB
Bidders: 0
Bidding opened with a $2,200,000 vendor bid, with auctioneer Fraser Cahill enticing the crowd for further offers; however no bidding activity was forthcoming so the property was passed in.
TOORAK, 1 May Road
SOI: $2,995,000 – $3,290,000
Sales Agent: Dominic Ziino – John H Castran
Crowd: 10
Opening Bid: $3,250,000 VB
Passed in: $3,250,000 VB
Bidders: 0
No bidders at this auction. The property passed in.
GLEN IRIS (STONNINGTON), 58 Vincent Street
SOI: $3,200,000 – $3,500,000
Sales Agent: James Tomlinson – Marshall White
Crowd: 40
Opening Bid: $3,300,000 VB
Passed in: $3,300,000 VB
Bidders: 0
Auctioneer James Tomlinson opened with a $3,300,000 vendor bid, however, only silence emanated from the 40-strong crowd, resulting in an eventual pass-in on the initial vendor bid
ARMADALE, 22 Auburn Grove
SOI: $3,950,000 – $4,300,000
Sales Agent: Nathan Waterson – Jellis Craig
Crowd: 30
Opening Bid: $3,900,000 VB
Passed in: $3,900,000 VB
Bidders: 0
A $3,900,000 vendor bid kicked off the proceedings, however this failed to encourage crowd participation, even after the halftime break, therefore the property was passed in.
TOORAK, 13 May Street
SOI: $2,600,000 – $2,850,000
Sales Agent: Michael Armstrong – Jellis Craig
Crowd: 20
Opening Bid: $2,700,000 VB
Passed in: $2,720,000
Bidders: 1
After a half time break and one bid later, the property was passed in.
MALVERN EAST, 10 Central Park Road
SOI: $5,700,000 – $6,000,000
Sales Agent: Michael Cooney – Hodges
Crowd: 25
Opening Bid: $5,600,000 VB
Passed in: $5,600,000 VB
Bidders: 0
No bidders as the rain came down. The property passed in.
MALVERN EAST, 31 Brunel Street
SOI: $2,600,000 – $2,860,000
Sales Agent: Leonard Persichetti – RT Edgar
Crowd: 20
Opening Bid: $2,500,000 VB
Passed in: $2,670,000
Sold After: $undisc
Bidders: 2
Two bidders went back and fourth, but the reserve was not met and the property passed in.
Bayside & Port Phillip
Albert Park Brighton Brighton East Elsternwick Elwood Hampton Middle Park
Opening M1
Bidderman
1.2
Stock
LOW
Clearance
56%
May M2 2023
Bidderman
1.6
Stock
LOW
Clearance
58%
Spring M3 2023
Bidderman
1.2
Stock
LOW
Clearance
63%
Bayside/Port Phillip – Week 3 (10 Auctions)
Bidderman: 1.5
Clearance: 70%
MIDDLE PARK, 212 Beaconsfield Pde
SOI: $4,900,000 – $5,300,000
Sales Agent: Michael Paproth – The Agency
Under offer
HAMPTON, 26 Imbros Street
SOI: $2,500,000 – $2,650,000
Sales Agent: Simone Tindall – Marshall White
Crowd: 70
Opening Bid: $2,600,000
On the market: $2,700,000
Under the hammer: $2,980,000
Bidders: 3
The auction began with a quick initial bid of $2,600,000 with a second bidder joining shortly after. After a short break a 3rd bidder joined with quick back and forth bids. The home was sold under the hammer to the first bidder for $2,980,000.
ALBERT PARK, 264 Bridport Street West
SOI: $3,100,000 – $3,400,000
Sales Agent: Oliver Bruce – Marshall White
Crowd: 70
Opening Bid: $3,100,000
Passed in: $3,345,000
Sold After: $3,530,000
Bidders: 2
Two parties battled it out, bringing the bid up to $3,345,000. A vendor referral attracted no further bidding and the property was passed in. Sold after.
ELWOOD, 2 Poets Grove
SOI: $2,500,000 – $2,700,000
Sales Agent: Lesley Pianella – Chisholm & Gamon
Crowd: 30
Opening Bid: $2,550,000 VB
Passed in: $2,575,000 VB
Sold After: $2,650,000
Bidders: 0
There were no bidders and the property was passed in at $2,575,000 on a vendor bid. Sold after.
MIDDLE PARK, 98 Armstrong Street
SOI: $4,000,000 – $4,400,000
Sales Agent: Warwick Gardiner – Jellis Craig
Crowd: 60
Opening Bid: $4,300,000
Passed in: $4,480,000
Sold After: $4,600,000
Bidders: 2
After a halftime break, a second bidder challenged the opening bid. The first bidder held on and secured the top spot. Sold after.
MIDDLE PARK, 187 Page Street
SOI: $3,500,000 – $3,800,000
Sales Agent: Nicholas Hoo – Marshall White
Crowd: 74
Opening Bid: $3,500,000 VB
Passed in: $3,525,000
Bidders: 1
With no bids Mr Bruce spoke with the vendors and on his return a bid of $3,525,000 was placed. The property was shortly after passed.
BRIGHTON, 114 Cole Street
SOI: $3,200,000 – $3,400,000
Sales Agent: Sarah Kobel – Nick Johnstone
Crowd: 60
Opening Bid: $3,350,000 VB
Passed in: $3,360,000
Sold After: $undisc
Bidders: 1
Opening with a vendor bid of $3,350,000 saw the auction begin, one bidder came in for $10,000 before the home was passed in. Sold after.
BRIGHTON EAST, 25 Robinson Street
SOI: $2,550,000 – $2,725,000
Sales Agent: Matthew Pillios – Marshall White
Crowd: 25
Opening Bid: $2,700,000 VB
Passed in: $2,735,000
Bidders: 2
Two bidders went back and fourth, but the reserve was not met and the property passed in.
BRIGHTON, 11a Cowper Street
SOI: $3,000,000 – $3,300,000
Sales Agent: Will Maxted – Kay & Burton
Crowd: 80
Opening Bid: $3,000,000 VB
Passed in: $3,100,000 VB
Bidders: 0
Two vendor bids went unanswered in front of a sizeable crowd and the property was passed in.
ELSTERNWICK, 22 Staniland Grove
SOI: $3,150,000 – $3,450,000
Sales Agent: Angelos Stefanis – Biggin & Scott
Crowd: 44
Opening Bid: $3,100,000
Passed in: $3,375,000
Sold After: $undisc
Bidders: 3
44 people where at the auction on Standiland Grove, Elsternwick. Auctioneer Bill Stavrakis described the house as “majestic” and an “unbeatable location”. With 2 bidders early on in the auction, a final bid was placed by a new bidder of $3,375,000. The property was then passed in. Sold after.
Mal James
Buy Sell Agent
0408 107 988
mal@james.net.au
GO PIES
Standards
A month ago, we found ourselves needing to part ways with a client – one who potentially could have brought in a $450,000 commission. This marked the second time our relationship had started and stopped. They expressed surprise at the decisiveness of our choice, perhaps believing that money could mend the rift. However, there was no charge.
The root of this issue was a loss of trust, a rare and uncomfortable sensation for both parties involved.
While the absence of trust can explain our unease, it doesn’t clarify why our company can work extensively with those we trust, often for extended periods without payment, yet finds it impossible to collaborate with those we don’t trust.
It comes down to various factors, including your team, your reputation in negotiations, and, above all, your personal interactions with your other clients – those with whom you share common goals, who rely on your expertise for critical property and life decisions, even if they might pay considerably less.
If, at a fundamental level, there isn’t alignment, then as the esteemed Ange Postecoglou says, trust becomes essential. If you cannot place your trust in me, how can I reciprocate and effectively collaborate with you, placing you on our team? Standards are the foundation of trust, and when applied to the right individuals, they yield remarkable benefits for everyone involved.
Our company standards are essentially an extension of our personal standards. It’s perfectly acceptable if you don’t see eye-to-eye with them – they might not be suitable for your needs. However, they have been the bedrock of our success for over 20 years.
We did not take a new client on for an EOI at $90,000 who could and did outbid our existing $80,000 client already on the home – both on 1% with $9m and $8m budgets respectively.
Returned a $50,000 fee to a completed client on a $5million home at our suggestion when a solicitor missed a technical clause in a contract – there was potentially unknown life-long tenants in a home which our new client buyer wanted to live in. It was not our role to advise on this, but it allowed them to exit the contract, especially when we said we would testify to support our client against the agent.
Some examples of standards and how they drive our actions.
- We did not take a new client on for an EOI at $90,000 who could and did outbid our existing $80,000 client already on the home – both on 1% with $9m and $8m budgets respectively.
- Returned a $50,000 fee to a completed client on a $5million home at our suggestion when a solicitor missed a technical clause in a contract – there was potentially unknown life-long tenants in a home which our new client buyer wanted to live in. It was not our role to advise on this, but it allowed them to exit the contract, especially when we said we would testify to support our client against the agent.
- Quoting – it is difficult to balance morality and legality with your responsibilities to a selling client who may well change their mind, when a market is falling and competition from other homes is aggressive in their quoting. I have softened on this, now I have walked in others’ shoes – softened, not thrown the concept out the door.
- Conflict – whilst it is rare, when it is there, we handle conflict through timely transparency – it has happened that at times we still have had to walk away. Conflict has not happened for several years now – but this month we had the potential on a home we were buying for there to be 2 clients. In the end it did not happen. But a copy of procedures was sent to them Day 1.
Our three guiding principles are as follows:
- Make a Positive Difference: This is our core purpose and ethical foundation.
- Do Unto Others: We treat others as we would like to be treated.
- Take the Middle Way of Enough: We find balance and avoid extremes in our approach.
These principles define our purpose, ethics, and business methodology.
We maintain clear standards for alignment in our work with both colleagues and clients. This efficiency reduces time spent pondering decisions, benefiting our clients by ensuring we focus on their needs rather than extinguishing fires elsewhere.
Occasionally, we turn away prospective clients to maximize our commitment to those who trust us, and in whom we have confidence when it comes to buying or selling properties.
Furthermore, we have established standards to safeguard our mental well-being, find meaning in our work, and secure an exceptional living for our families.
Ambiguity in standards leads to self-doubt, a detrimental factor in our business, as it erodes confidence, which is crucial for our clients.
Standards also encompass a no-dickhead policy because it’s the individuals who act disruptively that consume valuable time, which could be devoted to our valued clients. Some might argue, “Mal, you are the exception that defies your own rule,” and many others might concur with that sentiment.
Standards aren’t absolutes like the laws of physics, and they may not suit everyone. Standards mean different things to different people. For an American, standards may revolve around freedom; for an African, they might be connected to survival; and for an Australian, fairness may take precedence.
Each person holds their own unique truth. However, a consistent thread running through most, if not all, belief systems is a variation of the principle “do unto others as you would have them do unto you” – an ethical guideline that embraces truth and honesty in keeping one’s promises.
Without robust standards, you may find yourself gravitating towards the easier, often lower standards of others who may have mistreated you or whom you’ve seen portrayed negatively in the media. This path is a recipe for unhappiness, not just in your life but also in the lives of your employees and even your children. We all seek leadership that exemplifies standards we resonate with, as they provide us with strength.
Standards empower you to live a more fulfilling life and to find greater happiness in your work. Consider the many dispirited agents, particularly the older ones you encounter, who seem like the lights are on but nobody’s home – the spark has departed from their being. Such agents have, on numerous occasions, neglected their standards in the pursuit of commissions.
Standards aren’t always about achieving perfection or walking away from a client with discontent. Instead, they are about preserving enthusiasm, honing skills, and maintaining dynamism in what you do. They are about effecting a positive change in both your surroundings and within yourself.
Of course, there are times when clients decide to part ways with us as well. Despite our best efforts, our success rate isn’t a perfect 100%, but it hovers above 90%. In such cases, we don’t charge them.
Since the onset of Covid, I’ve often felt that we’ve been caught between a rock and a hard place concerning our standards. There have been moments when competing loyalties, rooted in our stated moral principles, have clashed with our clients’ best interests. In most cases, we’ve leaned towards serving the client’s needs.
In one instance, while acting on behalf of the seller, we had a verbal agreement on a home’s price, but another buyer surfaced with a higher offer before we could finalize the deal. I promptly relayed this to the client. Subsequently, we proceeded with an auction based on the client’s instructions, and the initial buyer was unsuccessful. This situation left me feeling like I had disappointed someone, although not our client. It truly tested my standards, and to this day, I remain somewhat uneasy about my actions – a classic case of being stuck between a rock and a hard place. Life, as we know, isn’t perfect.
Some time ago, we made the decision to part ways with a $200,000 client, not because they had done anything wrong, but because after several years, there had been no success. Why? The fault was partly ours due to our failure to persuade them on homes we had presented. It was clear that it was time for them to explore other options, as they had ceased to heed our advice. I’m aware that this decision upset them, and we extended our apologies.
Of course, there are times when clients decide to part ways with us as well. Despite our best efforts, our success rate isn’t a perfect 100%, but it hovers above 90%. In such cases, we don’t charge them.
We recently let 2 selling clients go on price – and whilst initially I may have allowed my ego to tell me I could help them – I found out I was just like everyone else when working with overpriced B and C graders at the lower levels. Our vendors of course may be right as I am not the font of all price wisdom……. but sometimes calls must be made with others interests above yours.
In conclusion, standards are a guiding force in my life, beneficial for my well-being and the company I believe in. These standards aren’t about finding a numerical threshold that justifies any action; they are about recognizing what you cannot simply ignore or accept. Over time, tolerating the wrong things for the sake of convenience, money, or avoiding conflict will take a toll, eroding your quality of life, your work, and your relationships, including the one with yourself. On the other hand, when you uphold standards that align with you, your company, and your clients, you can achieve success in meeting your clients’ needs, foster strong camaraderie at work, and secure a healthy income – all while finding contentment within yourself and your family.
Footnote: In all our one-page agreements with clients, there’s a clause known as the “Happiness Clause,” which is Clause 10. This clause, written in straightforward English, states that if a client is dissatisfied and doesn’t wish to proceed, they have the freedom to walk away at any time, even after a purchase. To date, this has occurred only twice out of over 1500 transactions, which speaks volumes about the ethics of the clients who choose to engage with us.
Additionally, within the past three months, we’ve had the privilege of working with three clients who exemplified the highest ethical standards:
Client One: Initially, this client changed their plans to return to Australia and wanted to compensate us for our time. Although we insisted it wasn’t necessary, they were adamant and eventually sponsored the African child surgery program, covering the cost of 10 children’s full surgeries at $1000 each.
Client Two: We continued to work with a selling client for an extended period, but eventually, it became evident that they would benefit from engaging a new agent and implementing a different strategy, as we had recommended. We released them from any obligations and declined payment. However, they insisted on compensating us and, in turn, funded surgeries for 20 African children at $1000 each.
Client Three: A dispute arose over an invoice for a property valued at over $10 million. We were prepared to accept the client’s decision as the final arbiter on the amount. Surprisingly, the client contributed an additional $70,000, and this amount was matched dollar for dollar by the Marshall White Foundation. In total, $140,000 was directed toward providing housing for women in crisis. The client was content with their purchase, and we were satisfied with our fee.
Standards encompass more than just handling difficulties, and they extend beyond the actions of any single individual. They pertain to all of us operating on the foundation of trust – not blind trust, but a healthy and respectful trust – where everyone emerges as a winner.
Malvern
Hawthorn
Kew
Glen Iris
“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%.
