Latest / The Real Estate Show / Mix 106.3's Real Estate Show - 29/08/26

Transcript

Mix 106.3's Real Estate Show - 29/08/26 · The Real Estate Show

0:00
Speaker 1: Well, Cam, we had another cracking real estate show on
0:03
Speaker 1: the weekend thanks to JW Land. Now it's time for
0:05
Speaker 1: another podcast.
0:16
Speaker 2: Yeah, absolutely.
0:17
Speaker 3: It was a really good range of interviews on Saturday,
0:19
Speaker 3: wasn't it? Alec Brown joined us, Sales Director and award-winning
0:23
Speaker 3: auctioneer at Ray White. And we talked about this concept
0:26
Speaker 3: of bidding against yourself at auction.
0:29
Speaker 4: And because when you hear that initially, you might think, oh,
0:31
Speaker 4: that doesn't sound like a great idea. But it turns
0:33
Speaker 4: out there are some exceptions and certainly different schools of
0:37
Speaker 4: thought on this.
0:37
Speaker 5: Absolutely.
0:38
Speaker 3: I think there's one group or one school over here
0:41
Speaker 3: saying yes and another group of people saying, well, you
0:43
Speaker 3: should be a little bit careful about doing that. But
0:46
Speaker 3: the thing that we do take away from these sorts
0:48
Speaker 3: of conversations is that you should just go educate yourself.
0:52
Speaker 1: Yep, 100%.
0:53
Speaker 5: This is a thing and if you learn about it,
0:55
Speaker 5: then you can work out whether it's right for you
0:57
Speaker 5: or not.
0:57
Speaker 1: Yep, absolutely.
0:58
Speaker 4: And something else you and I learned about was this
1:00
Speaker 4: concept of markets within a market. We spoke to Mario
1:03
Speaker 4: Sanfrancesco from Blackshaw, who spoke about what it all actually means.
1:07
Speaker 3: And we gave him a shout out as well, because
1:09
Speaker 3: for the fourth time now running, he has made it
1:12
Speaker 3: into the top 100. real estates of Australia. So there
1:15
Speaker 3: is a ranking system and it's the highest time this time.
1:18
Speaker 3: He is the 20th ranked real estate agent in Australia.
1:22
Speaker 4: That is insane and it's amazing and it's such an
1:25
Speaker 4: awesome achievement to him and his team as well. And
1:27
Speaker 4: we also spoke to Hannah Gill from Proteum Property Management
1:31
Speaker 4: about preparing a rental property for sale with tenants that
1:35
Speaker 4: are still in there.
1:36
Speaker 3: Yes, and so this is a very tricky space as well.
1:39
Speaker 3: And look, the number one key message from Hannah and
1:42
Speaker 3: it continues to be when we speak to her is
1:44
Speaker 3: you've got to put the human side of it first
1:46
Speaker 3: and you've got to build your relationship with the tenants
1:50
Speaker 3: if you can.
1:51
Speaker 1: Yep, 100%.
1:52
Speaker 4: And there's like with this as well, there's two sides
1:54
Speaker 4: of the coin, you know, the tenant's perspective, the landlord's perspective,
1:57
Speaker 4: the property manager has to try and marry the both together,
2:00
Speaker 4: which can be tricky, but certainly a situation that no
2:03
Speaker 4: doubt many people have and will find themselves in.
2:06
Speaker 3: Okay, that's what's ahead of you as far as the
2:08
Speaker 3: podcast is concerned. Thank you to everyone who has listened
2:11
Speaker 3: to us live on Saturday morning. We get to relive
2:13
Speaker 3: it now. Just before we get to all of that, though.
2:15
Speaker 5: Let's do this.
2:15
Speaker 3: Mix 106.3's Property Tip of the Week brought to you
2:18
Speaker 3: by Lister.
2:19
Speaker 1: Before choosing an agent, don't just compare commission. Ask exactly
2:24
Speaker 1: what's included and what costs extra. It could save you thousands.
2:28
Speaker 1: This tip was brought to you by Lister.
2:31
Speaker 4: Well, can we know how stressful auctions can be, right?
2:33
Speaker 4: There's lots to consider, like what strategy you're going to
2:35
Speaker 4: go in with, you know, what your budget is, like
2:38
Speaker 4: what your competition is like, like all that sort of stuff.
2:40
Speaker 5: I have a feeling you got that out of order
2:42
Speaker 5: a little bit. It's like, have I got enough money?
2:44
Speaker 6: Yeah.
2:45
Speaker 1: What cash have I got? What have I got to
2:46
Speaker 1: play with here?
2:47
Speaker 4: But bidding against yourself at an auction, we've spoken about
2:51
Speaker 4: this on the show a bit before. You know, we
2:53
Speaker 4: thought we'd dig down more on it. Is it are
2:55
Speaker 4: good or bad ideas. It's something that people are doing.
2:57
Speaker 5: Yep.
2:59
Speaker 4: And so Alec Brown, a man who's been around the
3:01
Speaker 4: block a few times and then some, sales director and
3:04
Speaker 4: award-winning auctioneer Ray White joins us.
3:06
Speaker 1: Alec, good morning.
3:07
Speaker 7: Renee, Cam, how are you both?
3:09
Speaker 1: Yes, we're good. Thank you so much for joining us.
3:11
Speaker 4: Can you explain this concept of bidding against yourself and
3:15
Speaker 4: when someone might do that?
3:18
Speaker 7: Absolutely. So at the end of the day, if we
3:20
Speaker 7: pick it apart, an auction really is just a negotiation,
3:23
Speaker 7: an open-air negotiation that happens between multiple parties or sometimes
3:27
Speaker 7: you might find yourself in a position where you are
3:30
Speaker 7: the only one registered to bid. So it is a
3:33
Speaker 7: one-on-one negotiation and essentially bidding against yourself. It's been a
3:37
Speaker 7: bit of a wives' tale out there in the marketplace
3:39
Speaker 7: for a long time. You'd never do something like that.
3:41
Speaker 7: It's not in your best interest and the seller has
3:44
Speaker 7: to take whatever the highest bid is. Ultimately, there is
3:47
Speaker 7: an expectation, there's a reserve price set by the owner.
3:50
Speaker 7: And sometimes by improving your bid, it's going to enhance
3:53
Speaker 7: your chances of actually winning the day and walking away
3:57
Speaker 7: with the property that you want to buy. Okay.
4:00
Speaker 5: And so that's what we've heard before.
4:02
Speaker 3: So why are some people saying that you shouldn't do this?
4:06
Speaker 5: Why are they arguing against it?
4:08
Speaker 7: Look, it's a great question, and I'm trying to figure
4:10
Speaker 7: that out myself for years, actually.
4:12
Speaker 2: I mean, it makes.
4:13
Speaker 7: Perfect sense, right? If it was an eBay auction and
4:15
Speaker 7: there was no reserve, well, you'd have to be mad
4:17
Speaker 7: to bid against yourself because there's really no point to it.
4:20
Speaker 7: But I guess the agenda is that sometimes it's a
4:24
Speaker 7: belief that, well, irrespective of the price, whatever the highest
4:28
Speaker 7: bid is, that's surely a demonstration of the market. We've
4:31
Speaker 7: seen it time and time again where the opportunity for
4:33
Speaker 7: a buyer was there to negotiate the They haven't taken
4:36
Speaker 7: that negotiation and ended up missing out afterwards when a
4:40
Speaker 7: property transacts for a higher price, the price that they
4:43
Speaker 7: would have paid at the time, but through the next
4:45
Speaker 7: step of an auction process, if it hasn't sold, goes
4:48
Speaker 7: to private treaty and you're increasing more competition. Okay.
4:51
Speaker 3: And there are some pretty strict rules around this though,
4:54
Speaker 3: isn't there?
4:57
Speaker 7: Strict rules in the sense of... Like how many times
5:00
Speaker 7: you can do it? Oh, limitless in that sense. So,
5:04
Speaker 7: I mean, there will be a vendor bid function potentially
5:07
Speaker 7: that an auctioneer might use, but ultimately the agent during
5:10
Speaker 7: an auction might come up to you and suggest that,
5:13
Speaker 7: look at the level that you're at. It's close, but
5:15
Speaker 7: you're going to have to improve on that bid. And so, theoretically,
5:18
Speaker 7: I've seen some buyers in a situation where they've improved
5:21
Speaker 7: their bid three or four times. The key thing is
5:24
Speaker 7: they were able to reach an agreement between them and
5:26
Speaker 7: the seller and the property was able to transact and sell. Okay.
5:30
Speaker 4: In instances like that, can it be better to, instead
5:34
Speaker 4: of upping your own bid, if it passes in, then
5:38
Speaker 4: using that negotiation period straight after to try and win
5:42
Speaker 4: the place?
5:43
Speaker 2: Potentially.
5:44
Speaker 1: Potentially.
5:45
Speaker 7: I mean, I'll give you a great example. I bid
5:48
Speaker 7: against my own self when I was purchasing my last
5:50
Speaker 7: family home. And the strategy behind that, the decision that
5:53
Speaker 7: I took was rather than letting it pass in and
5:55
Speaker 7: potentially other parties being in a position to make counter
6:01
Speaker 7: offers or compete for the property as well, I just decided, well,
6:06
Speaker 7: I'd rather get it done under the hammer where if
6:08
Speaker 7: we could reach that agreement, it was sold. That was it.
6:11
Speaker 7: No second guesses, no changing of the minds. And so
6:14
Speaker 7: You know, I'll walk the walk there as well as
6:16
Speaker 7: talk the talk. I'm happy to bid against myself if
6:18
Speaker 7: I feel like it's the best strategy that time because
6:20
Speaker 7: I really wanted the home. I saw value and I
6:23
Speaker 7: wanted to make it mine.
6:24
Speaker 3: I was absolutely going to say that when we've got
6:26
Speaker 3: an award winning auctioneer who's bidding against himself and that's
6:29
Speaker 3: your strategy.
6:30
Speaker 5: You've gone in with that.
6:30
Speaker 3: It's well worth listening to. Mate, what's the number one
6:32
Speaker 3: thing you should consider if you're going.
6:34
Speaker 5: To do this?
6:36
Speaker 7: Look, probably like you were both just discussing a second
6:40
Speaker 7: before is budget. Knowing what you're comfortable with, where you
6:44
Speaker 7: see value yourself and making sure that, you know, your
6:46
Speaker 7: finances have that alignment. That's the number one sort of rule.
6:50
Speaker 7: Also thinking tactically, if there is competition amongst other parties,
6:54
Speaker 7: sometimes that strategy of bidding against yourself just works. throws
6:58
Speaker 7: an absolute spanner in the mindset of people and what
7:01
Speaker 7: should ordinarily happen and take place and that it can
7:03
Speaker 7: actually be a really strategic move to set yourself apart
7:07
Speaker 7: from the rest of the buyers that exist in the marketplace.
7:09
Speaker 1: Throw them off and make them nervous. It's all the
7:11
Speaker 1: mind games, isn't it, Alec? We love it.
7:15
Speaker 7: Any bit of competitive edge, you've got to find it.
7:17
Speaker 1: That's it.
7:18
Speaker 4: I will love that you did it yourself and can
7:19
Speaker 4: speak about it from personal experience and professional experience.
7:22
Speaker 2: Thank you.
7:23
Speaker 1: That was really interesting. Thanks so much for joining us.
7:26
Speaker 7: Absolute pleasure, guys. Have a good weekend. Absolute cracker out
7:29
Speaker 7: there today.
7:30
Speaker 1: It sure is.
7:30
Speaker 4: You too, Alec Brown, who's Sales Director and award-winning auctioneer
7:33
Speaker 4: at Ray White. Well, Cam, this morning we're going to
7:36
Speaker 4: learn about markets within a market.
7:39
Speaker 1: What does that even mean?
7:40
Speaker 4: I kind of have a couple of things running through
7:42
Speaker 4: my mind of what I think.
7:43
Speaker 1: It might mean.
7:43
Speaker 5: Ethereal too.
7:44
Speaker 1: Ethereal too, but I'm not 100% sure.
7:46
Speaker 4: So it'll be really interesting to learn what our next
7:48
Speaker 4: guest has to say about this.
7:50
Speaker 1: Markets within a market.
7:51
Speaker 3: Yep.
7:51
Speaker 4: And Mario Sanfrancesco is sales consultant and auctioneer at Blackshaw.
7:56
Speaker 1: Mario, good morning. How are you today?
7:57
Speaker 2: Good morning, Renee. Good morning, Kent. Well, it's a magnificent day.
8:02
Speaker 2: I'm looking down here. The sun is shining. It's beautiful.
8:05
Speaker 5: Yeah, it really is.
8:05
Speaker 3: Yeah, yeah.
8:06
Speaker 1: And we're stoked to have you back on the show.
8:07
Speaker 1: Thank you.
8:08
Speaker 4: Mario, tell us, what do you mean when you say
8:10
Speaker 4: markets within a market?
8:12
Speaker 1: What is that?
8:13
Speaker 2: I guess what I mean by the market within the market,
8:15
Speaker 2: you know, the media is talking about the marketplace and
8:18
Speaker 2: property values, et cetera. And I guess right now, over
8:21
Speaker 2: 30 years of experience in the local real estate market,
8:25
Speaker 2: what I've seen today that is different is that the
8:29
Speaker 2: residential market is almost like the share market. You know,
8:33
Speaker 2: there are certain stocks that are doing better than others.
8:36
Speaker 5: Okay.
8:37
Speaker 2: And property is... is very similar to that. So to
8:41
Speaker 2: give you an idea, some of the ones that are,
8:43
Speaker 2: you know, the property values have held up better or
8:46
Speaker 2: that are selling more readily would be the following ones.
8:50
Speaker 2: They'd be newer built homes that are single level closer to,
8:53
Speaker 2: a really good amenity that would suit a downsizer or
8:57
Speaker 2: a family. They're going well. Standalone houses that are on
9:01
Speaker 2: some land that are under, say, $ 1. 3 million. First home
9:06
Speaker 2: buyer apartments up to $ 900, 000. But I say that depending
9:11
Speaker 2: on the building, the location, and the outlook. And interestingly enough,
9:18
Speaker 2: you know, a couple of high-end sales. There's been two
9:21
Speaker 2: or three sales north of $ 6. 5 million.
9:23
Speaker 7: Right.
9:25
Speaker 2: That have done well. But having said that, the cost
9:28
Speaker 2: of construction and land is so high that those probably
9:31
Speaker 2: sold for around replacement value. So those ones are doing well.
9:35
Speaker 2: The ones that are, I guess, a bit trickier in
9:38
Speaker 2: the market are the older houses, ones on substantially sized
9:43
Speaker 2: blocks that require either a renovation or a total rebuild, again,
9:47
Speaker 2: circling back to the cost of building. And some newly
9:51
Speaker 2: built townhouses in some newer areas and apartments are because
9:56
Speaker 2: the market just hasn't kept up with the cost of
9:59
Speaker 2: building those. So that's sort of what I mean by
10:03
Speaker 2: a market within a market.
10:04
Speaker 1: Yeah, gotcha. And so what does that mean for buyers, Mario?
10:07
Speaker 2: Buyers need to be aware of a couple of things,
10:09
Speaker 2: I think, in the current market. And that is that
10:12
Speaker 2: if they're a first-time buyer or if they're borrowing to buy,
10:16
Speaker 2: they need to be financially comfortable, allow for that first.
10:20
Speaker 2: in case of increased costs. That's one. They should buy
10:25
Speaker 2: right now, and I'll circle back to why. And if
10:29
Speaker 2: they're looking to buy something that's new, like if that's
10:33
Speaker 2: on the target, then it's unlikely they're going to find
10:37
Speaker 2: anything in the future that is going to be better
10:40
Speaker 2: priced than the current stock available today. And I say
10:43
Speaker 2: that because the cost of land, cost of construction is
10:47
Speaker 2: not heading south. It's heading north, according to all the
10:50
Speaker 2: sources that I talk to. So to replace those properties,
10:53
Speaker 2: if a developer can't make a profit, they're not going
10:56
Speaker 2: to build them. If they're not going to build them,
10:58
Speaker 2: what does that mean? Less stock. which means less pressure. So,
11:01
Speaker 2: you know, this is an opportunity for buyers to jump
11:05
Speaker 2: in if they're buying something new. I think what it
11:07
Speaker 2: means too is the winners really in this market are
11:10
Speaker 2: the upsizes. If you're selling one home to upgrade to another,
11:13
Speaker 2: the gap between the value of yours and that one
11:16
Speaker 2: is probably never going to be smaller. Depending on the property,
11:21
Speaker 2: you're already buying at a discounted rate.
11:23
Speaker 4: Well, Mario, that's really super interesting, and I feel like
11:25
Speaker 4: we could talk about that for much longer, but we
11:27
Speaker 4: will have to leave it there.
11:29
Speaker 3: Just before we do, though, we need to say a
11:31
Speaker 3: massive congratulations to one Mario Sanfrancisco. Of course, we know
11:35
Speaker 3: and we have heard in the past Australia's top 100 agents,
11:38
Speaker 3: so this is a thing, and Mario has been in
11:40
Speaker 3: there three times now, a fourth time just recently, and
11:44
Speaker 3: highest ranking ever at 20th.
11:47
Speaker 1: In the country.
11:48
Speaker 2: In the country.
11:48
Speaker 5: That's just amazing, mate.
11:50
Speaker 2: Thanks, folks. No, thanks to my team, Fiona, and our
11:54
Speaker 2: clients over all the years. We're very grateful that we
11:57
Speaker 2: could work for them. So thanks very much, folks.
12:00
Speaker 1: Yeah, it's an awesome, awesome achievement. And thanks for your time.
12:02
Speaker 1: Have a great weekend.
12:03
Speaker 6: No worries.
12:04
Speaker 2: Thank you. Bye-bye.
12:05
Speaker 4: That's Mario Sanfrancesco, sales consultant and auctioneer at Blackshaw.
12:08
Speaker 1: Well, can we know.
12:10
Speaker 4: We've spoken about this on the show before, we've heard
12:12
Speaker 4: from a number of guests that, you know, here in Canberra,
12:14
Speaker 4: a lot of investors are leaving the market or thinking
12:17
Speaker 4: about leaving the market due to some of the changes
12:20
Speaker 4: that have kicked in or are due to kick in,
12:22
Speaker 4: especially in relation to, you know, the federal budget. And so, obviously,
12:25
Speaker 4: there's lots of landlords who are going to be like, okay,
12:28
Speaker 4: we need to sell the property.
12:29
Speaker 5: Yep, pack up shop.
12:30
Speaker 1: Pack up shop and put it on the market.
12:32
Speaker 4: And it can get a bit tricky when you've got
12:35
Speaker 4: a tenant living there and you need to sort of
12:37
Speaker 4: get in and figure out, okay, what do I need
12:39
Speaker 4: to do to this house to get it ready to sell?
12:41
Speaker 4: But the tenant, you know, in lots of cases, may
12:45
Speaker 4: not want to do that.
12:46
Speaker 5: That's right.
12:46
Speaker 3: And certainly has rights. I mean, as you said before,
12:49
Speaker 3: this is a tricky space, right?
12:51
Speaker 2: Totally.
12:51
Speaker 4: And you can kind of certainly get both sides of
12:54
Speaker 4: the coin here. But Hannah Gill is Director at Podium
12:57
Speaker 4: Property Management and REACT board member who lives and breathes
13:01
Speaker 4: this stuff.
13:02
Speaker 1: Hannah, good morning.
13:04
Speaker 6: Good morning, guys. What a great series to work through.
13:06
Speaker 7: Yes.
13:07
Speaker 1: Well, is this a common situation that you see often?
13:11
Speaker 6: Oh, look, in my experience, I wouldn't say common or standard,
13:14
Speaker 6: but over the years, I've had hundreds of owners sell,
13:16
Speaker 6: and many tenants in those scenarios have been super helpful
13:18
Speaker 6: to comply with access. But I guess if you put
13:20
Speaker 6: yourself in their shoes, it's probably fair to say that
13:22
Speaker 6: some of them do feel pretty hard done by, and
13:25
Speaker 6: that's where the power of negotiation relationships come into effect
13:28
Speaker 6: to try to get access and make it amicable for
13:30
Speaker 6: everyone involved.
13:31
Speaker 4: Yeah, and that must be really tricky, like with your
13:33
Speaker 4: property manager hat on. like you said, you have had
13:37
Speaker 4: to manage situations like this. Is there kind of one
13:39
Speaker 4: or two that have sort of stuck with you?
13:41
Speaker 6: Yeah, I think over the years, in the best case scenario,
13:44
Speaker 6: we negotiate reasonable access and everyone's happy. But in a
13:47
Speaker 6: worst case scenario, there's been times where we have ended
13:50
Speaker 6: up having to go to tribunal to get an order
13:52
Speaker 6: to get in just to have a look at things.
13:53
Speaker 6: So it can be a real spectrum of what.
13:58
Speaker 5: Okay.
13:58
Speaker 3: And so we talk about rights and let's have a
14:01
Speaker 3: look at it both sides here. So first of all,
14:03
Speaker 3: to the tenant, and again, we must be careful here.
14:06
Speaker 3: What rights or what's the sort of number one right
14:09
Speaker 3: that the tenant has in a situation like this?
14:13
Speaker 6: Yeah, our legislation in Canberra talks a lot about the
14:15
Speaker 6: word reasonable. So all access requests for a tenant need
14:18
Speaker 6: to be reasonable. I know that probably sounds like a
14:21
Speaker 6: broken record. I say that a lot. But for the
14:22
Speaker 6: most seamless experience and the better the relationship fostered, the
14:26
Speaker 6: more amicable I found and the more flexible tenants will
14:29
Speaker 6: be with allowing us access to get these kind of
14:31
Speaker 6: things prepared.
14:32
Speaker 1: Yeah, got you. And okay, so what rights do the
14:35
Speaker 1: owner of the property have too?
14:36
Speaker 6: This one's a lot more black and white in Canberra. So,
14:38
Speaker 6: if an owner or a property manager needs to enter
14:40
Speaker 6: a property to inspect maintenance or repairs as a result
14:43
Speaker 6: of maintenance, they need to give one week's notice unless
14:46
Speaker 6: the tenant agrees to a different length. So, obviously, wherever possible,
14:50
Speaker 6: give more notice. But legally, only one week is required.
14:53
Speaker 2: Okay. All right.
14:54
Speaker 1: Well, it's super interesting.
14:56
Speaker 4: And you'd be used to it by now because you've
14:59
Speaker 4: been doing this for a long time. But I mean,
15:01
Speaker 4: it must still be difficult to kind of manage those
15:04
Speaker 4: situations because you're managing personalities and people's, you know.
15:08
Speaker 5: You're managing livelihood essentially.
15:10
Speaker 1: Livelihood and that takes a certain skill set.
15:14
Speaker 2: Of course, yeah.
15:15
Speaker 6: And I think it just comes back to, and we've
15:17
Speaker 6: talked about this before, but really being human about the
15:19
Speaker 6: whole process. Like, yes, we're dealing with an owner who
15:22
Speaker 6: might be stressed about needing, you know, to make a
15:24
Speaker 6: sale of a property because it's very expensive for them.
15:27
Speaker 6: But equally, we're dealing with a tenant who that's their
15:29
Speaker 6: home and their whole life kind of turned upside down
15:32
Speaker 6: as well. And so I think putting people first is
15:34
Speaker 6: the most obvious and most helpful advice I could give
15:38
Speaker 6: because that's where we usually get the best outcomes.
15:40
Speaker 1: Yeah, 100%.
15:41
Speaker 4: Okay, well, it's super interesting, especially to learn more about
15:44
Speaker 4: the rules and the ACT.
15:45
Speaker 3: And this is the best thing, Hannah, right? Every time
15:47
Speaker 3: you're on the show, we just get to learn something.
15:49
Speaker 3: So we love.
15:51
Speaker 5: That for sure.
15:51
Speaker 1: Yeah, we definitely do.
15:53
Speaker 4: Yeah, well, thank you so much for painting that picture
15:56
Speaker 4: for us and explaining both sides of the coin there.
15:58
Speaker 1: We really appreciate it.
15:59
Speaker 2: No worries, guys.
16:00
Speaker 6: Have a great day.
16:01
Speaker 4: You too, Hannah Gill, who's Director at Podium Property Management
16:04
Speaker 4: and React board member as well.
16:06
Speaker 3: Well, those are the interviews we most enjoyed in last
16:09
Speaker 3: week's Mix 106.3 Real Estate Show. If you love hearing
16:12
Speaker 3: about the latest trends or you're just up for a
16:15
Speaker 3: sticky beak, be sure to drop by for a listen
16:17
Speaker 3: this Saturday between 9 and 10.
16:19
Speaker 1: Cam and Renee's Real Estate Show on Mix 106.3.