30 York Street Hawthorn - Behind the Scenes (Buying)
With auctions starting in earnest this week and the James Buy Sell 2024M1 100 Auction Test beginning next week, just a quick “meat and potatoes taster” of behind-the-scenes, acting for either buyers or sellers.
So, we met our buying clients on zoom late last year. We felt Sim would be best to manage, as I came across as a bit full on (no surprise there). Lovely young family referred to us by past clients in the same medical profession. Our fee for full transparency was 1.5% plus GST payable on settlement if preferred and no charge if not successful.
After taking a brief, we would normally search on and off market. However, 30 York was identified relatively quickly and the clients, Sim and I went through the home multiple times, preparing a rating (which you can view) our thoughts on values (which you can see below) and discussing the lifestyle merits of this vs others.
In the last week we completed a pest and building inspection, council check, legal checks, general housekeeping, and we met twice to discuss auction tactics (two days before and on the day). We executed our bidding strategy exactly as planned.
Auction Video
Full James Home Rating
James Auction Report: The agent quote was $2.3m to $2.5m. On the market at the top end of the quote, with 3 bidders finishing under the hammer at $2.9m. We bought 30 York for our client in front of a crowd of 60, having opened at $2.4m. Auctioneer Andrew Gibbons. Sales Agents: Duane Wolowiec and Tori McGregor. Buyer Agent: Simone Clarke of James Buy Sell. Photo: Randall
James Buy Sell Values To Client Week Before
The above numbers are what we gave our client in the week before at our pre-auction meetings, so they could confirm with mortgage brokers what they would need before they went to auction. We felt there would be multiple bidding at $2.4m – there was three of us. We thought there would be concentrated interest at $2.6m and there was and we felt you would be last bidder standing at $2.92m and we were at $2.9m.
After the auction everybody was a hindsight hero – sure it’s not a perfect science, nor we perfect scientists – but these sorts of homes are not hard to get right (if you want to).
We gave this information before. Auctions (whether selling or buying) are 90% preparation and 10% perspiration. Below is the comparable information we presented to justify our values and why we thought the agent quote was going to be 20% off the mark.
Quick Update on the market
The market for ready-to-move-in, well-located homes has seemingly started a fair bit stronger than it finished last year – and if you are buying at auction or EOI you may want to consider buyer agent assistance, as you could have strong competition. Early days though!
Things are happening in Brighton (Selling)
Private Inspections and Multi-Agents work
May 2021: James Buy Sell, acting as a buying agent, we bought from Buxton for $7.35m in a boardroom auction.
November 2023: Mal was contacted by the above new owners (our past clients) to sell, as they no longer wanted to go through the trauma of building after their builder had gone broke halfway through demolition.
Our recommendation was to join forces with Zali Reynolds (Shelter By The Bay) and Stefan Whiting (Buxton) as three good agents with different databases made sense.
We signed an authority for 9 months, with an SOI of what we paid $7.35m up to $8m, and we set about an off-market campaign using only a board and Marketnews advertising. We ordered contracts on day one and got them within a week or so.
Together we took three builders through pre-Christmas, and all liked the land size (2200+sqm), but none offered a clean contract (without onerous conditions), all were below the SOI, and none were less than 12 months’ settlement.
We recommended pushing on after Christmas, and we did.
February 2023: Two local buyers who read our marketnews.com.au and who saw the board inquired and were given space and time via private appointments.
One buyer made an offer within the range and was thanked and treated with respect.
Rob Fletcher stepped in to act as their buyer representative, and with Zali and Stefan’s help, we did a deal mid SOI range on 5 months and unconditional.
All were happy – see comments below, unsolicited and the day after the deal.
It was a great deal for the buyer, who had been looking for years and now has a brilliant and rare flat block on which to build a truly wonderful home in a sensational location, AND a great deal for the seller, who got more than they paid despite the market going down and a very good house (were living in it) being destroyed.
SOLD by working together: JAMES BUY SELL, BUXTON, and SHELTER BY THE BAY.
The proof is in the pudding – private inspections, a truthful SOI, and a clear and transparent negotiation process were liked by all sides AND WORKED.
Buyer agents are of great value in EOIs and Auctions.
Private inspections are of great value as they give time. We did not pressure with BS other offers; we just said what our selling client wanted and stuck till the deal was done.
Multi-agent setups are of great value. No advertising cost, and the fee was 2%+GST shared by all agents who worked together to achieve what was for both sides a super result – in fact in Bayside, any result on homes needing work is super.
So if we were not successful there would have been absolutely no charge in this case.
Footnote: The home below at 6 Menzies Avenue, Brighton, is a home Stefan brought to Zali and myself to jointly work on with Kym and himself, and we are looking forward to it – it will sell, too good a home not to. Why not have more agents working on good homes and more “qualified” buyers through? You know it makes sense (OMG a Kekovichism).
Who cares who gets the kudos if the clients win and we all share a success fee!
Agents I still don’t understand some of you – you would have only charged 1% if you got the job (and how many have you missed). So, with James Buy Sell you get somebody helping you list the home (more listings), somebody helping you find the buyers (better for your client), we do the admin and prep (more time for you to focus) and you get a better price for your client (more kudos on the deal) AND you still get your full fee.
Buyer Agent Collaboration also. As a buyer why would you hire 1 buyer agent and restrict the looking to a small number of homes and also to one opinion on value and one opinion on strategy. We collaborate with a number of buyer agents all over Melbourne and the Peninsula and share good fees for good results or it's no charge to our clients.
Sellers why would not 3 agents with 3 lots of databases and energies and opinions when all motivated and going in the same direction, not be better than you trying to herd cats and finally choosing a secretive, uncooperative and probably cheap selling agent not trusted by the buyers. Like why does that make sense on a multi-million dollar deal?
Why are private inspections not encouraged – unless you have been talked into the 1 in 100 pizza buyer OFI strategy. Meaning spend no time with proven real buyers and spend all your time chasing the miracle passing pizza buyer via blanket OFIs.
Costs: We covered board and Marketnews advertising ourselves. No advertising cost to client on this one – yes on others we recommend significant expenditure, but on a home like this – no additional costs. We are 2%+GST – but that’s all you pay and we can earn that back for you in a better deal. We don’t do fraudulent incentive boosters, we have multiple agents we share with and you only pay if successful.
Oh, Mal, that was a fluke, a lucky start.
I’ve been at this for 20+ years but OK. Just like 2 others we managed prior to Christmas – 111 Sackville above $19m and 26 Kooyongkoot Road above $16m, which were also both multi-agents and private inspections only and had buyer agents and 2% commissions.
OK the other side. Do we always collaborate? NO! We competed hard at auction today in Hawthorn and won for a buying client. We acknowledge that was a price, that only a multiple bidding auction could have got.
Yes auctions, if you have 3 and 4 bidders, are great.
We work as one agent on our auction campaigns – this makes sense. But so many homes ARE NOT suited to auctions in this market.
If you have one bidder – which is the norm Top End, then the proof of our multi-agent and private inspection claims is in the Top End pudding results outlined here.
Proof’s in the Pudding and Horses for Courses and I have more cliches and real-life results to show why private inspections, no internet and multi-agents can work!
Bolton Result. Multi-Agent & Private Inspections
"Woo hoo. Great news. Thanks Mal"
"Hi all Congrats to everyone. These deals are never easy but i found the process simple and fun (yes fun) Mal thanks for getting it across the line. Robert this goes unsaid You are excellent at your craft and equally in your professionalism and mannerism"
"Teamwork Mal. Thank you for working with me on Bolton"
"Thank you Mal, Appreciate your support and transparency as part of the journey"
"Zali thank you for your wonderful behind the scenes efforts, you are an ethical breath of fresh air to Brighton real estate"
COMMUNITY
The whole James Buy Sell and Shelter By The Bay collaboration started as a joint desire to give back more to our overseas communities.
To date James Buy Sell has funded 780 child surgeries in Africa at around $800 each.
This week Brighton Rotary gave us tax deductibility via supporting the child surgery program, which will allow additional public donations, to support the building of one of Tanzania’s and Africa’s first Children’s Hospital and child surgery networks.
It’s seemingly not easy to do this as many find excuses about local medical training, corruption, lack of interest as to why you can’t help instead of “yes it’s not perfect” and why you can help. More are standing up and being counted and Sim, Zali, Danny and I thank all at Brighton Rotary who decided they could help. It’s most appreciated.
Thanks to Murray and Anne Winstanley, Nick and Lil Mazzeo, Alec Arnot, Kate and Stig Jensen, Tyler Hunter, Julie And Ian Spence, Paul and Rose Broderick, Matt Nichols, Colleen D’Offay, Geoff Cunningham, Arthur Hubbard, Anthony Langley, Nicole Cheng, Rob Pinchbeck, Stuart McMillan and Bill Howley who helped behind the scenes or voted in favour of the project. Extra thx Colleen and Murray and Anne.
