Off Market Multi Agent

Saturday, April 22nd, 2023

Off Market Multi Agent Masterclass

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.

Multi-Agent

Off-Market

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 below shows this and is to scale.

Elsternwick

Forthcoming 720 sqm

Off-market Multi-agent

Nth Rear - Great Street

In 2023 Our Markets Are Volatile - read the article

Volatility doesn’t just happen on the way down – it also happens on the way up!

When a market is changing, by logic it is volatile, as it’s moving from one phase to another.

Are we moving gears back to our 2016, 2021 powerhouse markets – not sure – one thing I am sure of though, we are moving direction.

Things will begin to happen that are “unexpected” – pass-ins on good homes, huge prices on others….. with some buyers and some sellers missing out completely….. that’s what volatile means – a significant increase in the unexpected.

In 2023M1, the opening market, we did see dramatic change, albeit on low stock and mainly in one council only – Boroondara.

But that council is one that matters and from here recent history has shown that Melbourne will follow it’s lead – Boroondara is not the canary in the goldmine – Boroondara is the goldmine, and the canaries are Aussie-Asian bidding and they’re flapping their feathers.

Momentum has swung around from 5 down markets in a row to a flat market by the Bay and a rising market in the East. The market in M1 was a lot stronger.

Stock Post Easter – stock feels incredibly low for this time of the year and that will definitely add to the volatility, as some home types will have wounded underbidders and other home types no interest at all – new players will find that hard to fathom.

Off-markets will flounder – unless their 4 Duck off-market Test waddles, looks and quacks like a duck. Authority to sell, clear price, contracts and access – are your Ducks lined up and must be present or else you are losing buyers as a seller and wasting your time as a buyer – and that is before either of you start to try and negotiate price. We discuss in detail I next weeks off-market podcast.

Buyers – are back in numbers (for the right PPP’s) – they were MINA (missing in no action) in 2022M3 and 2022M4 – but in 2023M1 they returned – the market god flicked the switch – welcome back or simply for many just welcome.

Family homes are not the same as investments (even though good ones are investments) – they are not driven by the money and stock markets all the time – granted in late 2022 they were. But in 2023 the $2m to $6m market where there are two transactions, a buy and a sell and a money juggle feels like it will be both challenging and profitable for those that get it right and the opposite for those that don’t.

We live in volatile times!

Bang! That means right now $millions are on the line for buyers and sellers.

It’s game back on!

All @ Xmas 2022

Bidderman

1.2 Stock

LOW

Clearance

63%

Stonnington 2023

Bidderman

1.1 Stock

LOW

Clearance

52%

Bayside 2023

Bidderman

1.2 Stock

LOW

Clearance

56%

Boroondara 2023

Bidderman

2 Stock

LOW

Clearance

81%

Play Video

Turn $1 into $4 for someone like Mum

We can all walk past the increasing number of homeless men in the street and think they are not really homeless, or they are undeserving or there are too many or I gave at the office or it’s somebody should do something but……….

Homelessness amongst many middle-aged women (like our or your Mum) is hidden and is increasing NOT decreasing, despite best efforts of many!

It’s gone up 10% and an overall homeless increase of 47 people per 10,000 in Victoria – 2021 Census Launch Housing. Why? Mainly due to domestic violence and costs of living pressures.

Why should you care – you have your own charities – we do to – our focus is child surgeries in Africa – but this is home, this is where we ply our trade and where we live.

And yes, we can all say it’s a government issue or times are tough and all of that is true but…

You can directly do something for, an individual like Irina – on the ground help for women (just like your grandmother or sister or auntie) who want to escape or avoid, couch surfing, emergency accom, boarding homes far away (all hidden from us) – who need a bond or some electricity or something for their children. Read the stories.

The fund that does this (and we hate wasting money or charity BS and so does Marshall White Foundation) since 2003 through Launch Housing is now called the Parachute Fund and this is the third year Marshall White has agreed to donate $1 for $1 up to $50,000 for what we can raise. Every cent to every client is verified/audited.

Source: Census of Population and Housing 2006, 2011, 2016, 2021.

Multiplier maths: If you give $5,000 – it may be only $2,500 approx* (as fully tax deductible) and then Marshall White Foundation matches it – so for $2,500* you are getting $10,000 in donation power and if you challenge a friend to match you then your $2,500 makes a $20,000 difference.

How to donate and really help middle aged women in your suburb who are homeless!

Go to the Marshall White Foundation – scroll down, click on donate and donate direct. You get a tax-deductible receipt. Click here it’s 3 minutes to do it and hey type in a $1,000 not $10 please! Hurt a little like other Melburnians are – thank you!
Anyway donate here or contact mal@james.net.au or matlock@marshallwhite.com.au or james@marshallwhite.com.au – let us know and/or see more about your impact.