Latest / The Complete Agent - The Podcast For Premium Real Estate Agents / 127. The Pricing Strategy That's Winning Estate Agents More Sales
Transcript
- Dave Warburton: Hello and welcome to another episode of the Complete Agent Podcast, where each week we get together to talk all things a state agency. My name is Dave Warburton, and I think this is actually the first time in a while that it's just been the three of us, hasn't it? The three the three original lads on the podcast, Mr. Ian Story and Mr. James Kendall. How the hell are you both doing? It's gonna go chaotic because what I would say is Michelle has brought a lot of order to this podcast. She's brought a lot of order to TCA to be fair. Ian Storey: Yeah. Yeah. She has. She really has. Dave Warburton: and order to our lives in general. And I've got a feeling that this could go south today. So let's see how it goes. How has your week been? I'm gonna start with you because you'll look like shit today, JK. JK: I thought you were talking to yourself again. Well, thank you very much. What Dave Warburton: Ian, back more beer, he looks he looks terrible today, doesn't he? JK: do you mean I look terrible? Dave Warburton: You you've clearly just got out of bed. Ian Storey: It looks about thirteen. Dave Warburton: You look like you've been beaten up, yeah, your hair's flat. What happened to your hair? I mean, what's going on there? Yeah, exactly. You've not even made an effort. Disgusting. JK: I mean, take that, to be fair. I haven't done my hair yet. That's that's the thing. You know, I'm here on the podcast, I'm ready. Listen, Mr. Dressing Gown. Let's not forget where we are here, yeah? Dave Warburton: Ha. JK: Anyway, how has my week been? Thank you for asking, David. It's always lovely to hear from you. my week has been good. We've we've got some good sign ups going on, got some good take ons happening. We've got five offers that we're currently negotiating. I think that's one more than your four that you just said you had just off air. but we are seven offers that we are dealing with at the moment. No. so no, we've got a fair bit going on. We've we've not had the best sales month, if I'm honest. we've only on about seven so far for July. but you know, to be fair, with the level of fee that we've got, we're we're okay. I'm all right, I'm all right with that, to be fair. Like I think sometimes I think you you say it to me, Dave, you know, check yourself. Because in like eight years ago, what I've just done this month, and I think it's not a very good month, would have been an amazing month, and we'd have been popping out the champagne and the party poppers and life would have been good. But but yeah, no good. We've got some really good stuff coming on. We're going out to some great vows. You know, we the diary hasn't been packed in the last week and a half, which is good in terms of vowels. It's just given us a bit more time to get some bits together. so We had a shoot yesterday at a farm on ten acres. got a modern sort of gold dusty one on Friday this week. That's gonna be sort of six fifty ish. I've got a shoot booked in for next week. That's gonna be nine. one booked in the week after at three and a half. So yeah, I've got some good good stuff booked in. obviously completed on the three million pounder, so I can stop talking about. But you'll be pleased to know I've just signed up another one at three and a half. Dave Warburton: Mm-hmm. JK: So I can carry on talking about that every week. some say it's fictional, some say it's true. but we will confirm in future. but yeah, no, pr pretty good all round. rather than going straight to Ian, I'm gonna feel sorry for you, Dave, and I'm gonna go to you, mate, because I've always felt like you go last. Dave Warburton: Thanks, mate. Appreciate that. JK: We normally do that though because you talk loads. Dave Warburton: Pot kettle black. right. yeah, good good week. instructions are really good at the moment. the biggest problem we've had over the last few months, to be quite honest, or the last couple of months, is getting them in in a timely manner because it it has been originally if you remember we had some crap weather and it was a case of trying to get everything in and avoid the rain. as soon as it becomes sunny, everybody wants to come on the market straight away. So we we've had a couple of days where we've had to do a couple of take-ons in the same day. But yeah, it's been challenging to get both, if I'm honest, valuations and instructions in. So we're sat on one, two, three, four, five, six, seven in photography at the moment that are due to come on, ranging from piece of land at 400,000 up to A really lovely unique home that I did yesterday at 1.6 million that has its own lake and a swimming pool. Very nice. So quite a few in the gold dust range, 1.2 million as well. So instructions and fees, excellent. Sales, I mean, JK, you mentioned there, not amazing at seven units. I mean, we're the same at the moment, seven units, but I've got negotiating four offers this week. Plus, we've got Ian Storey: Right. Dave Warburton: three there to go into the pipeline, I think today I'm hoping by the end so we'll have like a a ten unit month. But to be honest, that you know that's kind of where our business is. You know, high really good fees and and lower volume. But I to be honest, seven to ten sales a month, I'm happy with that to be quite frank, where my business is at. I like it. we are scaling up at the moment. I've just taken somebody on, as you know guys, she starts next week and she's going to be supporting on Valuations, negotiation, client contact, all that sort of stuff. So, you know, we are we are growing and there's certainly too much I think for one. But we're in a a very, very strong position. Things are things are good. And what I'm finding is something that I've been talking about quite regularly on the pods and with the TCA members and and yourselves, is I'm finding that the newer stock is being a bit more realistic now. And it's easier to get them on at the right price points. There's the odd anomaly, there's one or two that you just can't convince. And I think we've all had this. You know, you'll go out and do your valuation. I've had one of these this week where you've been out, you did your valuation weeks or months ago. you send them the proposal, they sign up, you go out, you do all your photos, your video, floor plan, everything, you spend all the time, you're ready to launch, even after a really thorough pre-launch strategy, you're ready to launch and they want to change the price. Something a bit higher. That's that's sometimes challenging. I've had one of those this week, but overall, I'd I'm finding that the newer stock that's coming on is a bit more realistic, it's well priced for the market. and as a result of that is shifting. So it's the older stock that is more challenging, that's perhaps got their life ambitions set on a previous market, and it's just educating that market a little bit. You know, what I went to one this week. that's been sat on the market for about nine months. and they've already reduced to be fair. And even if you look at all the price per square foot data and stuff now, like I said to them just the other day, that if I was coming out to you fresh, I'd never met you in my life, and I was coming to your property today, the numbers that we'd be talking about are not too far from where we're listed at right now, based on all the data. the difference is we know what the behaviour in the market's like. And we now have a lot more experience over the last six months about what the actual micro area is like. And this particular area I've mentioned before has been dropping a lot more than not just other areas in Bolton, but Greater Manchester. It's it's been heavily impacted. But it it experienced sharp and very high growth over a short period of time. It's now suffering a little bit. But people only remember the bloody growth. That's the problem. They don't remember the growth. And when they came on the market, they'd set all their ambitions based on certain figures that they feel that they can't go below now. But unfortunately that's not how it works. As we wrote in the the letter that we've sent out to our members and obviously to our target audience, the market doesn't care what your ambitions are. They don't care, it doesn't care what your plans are. It only cares what the market does. And you and you can't control that. So yeah, been it's been overall, like I say, I can't complain. it's been It's been good so far all year. Very consistent. Valuation numbers are great. so yeah. All good. What about you, Ian? Ian Storey: Also good, mate. Yeah, we've had a really good run on listings. mainly Matt and Vicky rather than myself. I'm doing a bit less on the listing side than I was, but so therefore they're doing more, which is good. And they've had I think five so far given us the go-ahead this week. And they're sort of between six hundred five hundred and one point two, all full fees, up fronts and two percents. some fantastic shoots we've been doing recently. The weather is shit today. And we had a shoot JK: Mm-hmm. Ian Storey: book that's rearranged, but we've had some absolutely superb shoots. We put we we listed, we put on the market last night six absolute beauties, really, really nice houses ranging from six hundred to two million. we have did you lad say you'd done seven sales? JK: actually eight. How many have done? Ian Storey: eight point one. JK: We've done nine sales. Ian Storey: So far in July, 11 sales, and there's three other offers live that Phil is negging as we speak. I also wanted to mention to people that I think, especially for your higher-end stock, I mean, really for any stock, but in particular the higher-end ones that are harder to sell, agreeing sales to people who can't proceed is definitely the way forward in this market. We've got one currently that was on with another agent at 1.75, too expensive. We brought it on at 1.5 about three months ago. it's near an A road. It's had really good interest, but it is near an A road and that's been a lot the feedback. but we've just basically today Phil's agreed a sale at one point five. The guy's got a house to sell. The guy's given us his house to sell. It's a gold dust seven fifty, should fly, desirable village. so I'd be definitely encouraging people to agree. Obviously, not I don't mean take it off the market and issue a memo, but verbally get people tied in is very important, Dave. Dave Warburton: Just on that as well, Ian. Are are you have you ne agreed a a grace period for that? No? Interesting. Ian Storey: No, not on that one. We would do on some, you know. If it's been on the market three, four months, then yeah, I'd absolutely agree. Grace period. Get it off right move for seven weeks. but no, no, we haven't on that one. He hasn't asked for it so far anyway, so I don't think that's what we're going to doing. but that's a great way to to get yourself some future sales bagged, I think. And it really impresses the seller. we've had a good run on banked fees, finally. We had an awful Q1 cash flow. but but it's been strong in the last couple of months, so that's really bounced back. we've had a really good touch yesterday. So I agreed a sale on a two million pound house in February to a chain-free buyer, and the seller just has not been able to find anywhere since February. You know, it's now August. But the house is beautiful and the the the buyer was just so keen to secure it. He's held on and held on and held on for them. And they found somewhere yesterday a chain free house to buy. Thank God. So that's that's Although it's been in the pipeline, it really now feels like it is in the pipe. And that's a two million on full full fee. So that was a good touch yesterday. our nuts for office is now sort of officially kicking off. So Matt is basing himself from the nuts from the Nutsford office one, two days a week now. He's targeting stock that's on with other agents that we think we can get hold of. So he's ri we're really putting a bit of focus into the Nutsford office now, which Matt is enjoying. And we're starting to do lettings And mortgages. So we've got a mortgage partner who we're working with. That's really going well now. We're getting a good amount of leads over to him per week. And that will become sort of an official business joint in in a in a couple of months' time, hopefully. and then we're also going to start doing mid to higher end lettings, which Aiden's involved with. so we're sort of putting all the steps in place at the moment for that. And then we're going to grow that as well. And we've picked up our first fully managed let at 13.5% mid to higher end property, fully managed. couple of weeks ago. So that's good as well. So really, f things feel in a good place. Bows in the last week slightly down. The team are focused on it. Ultimately it's summer holidays, isn't it? So you'd expect it to be a little bit lower. and our socials are flying. Absolutely flying. The amount of inquiries we're getting has been brilliant. I've got this idea that I call the pre launch where I Dave Warburton: You're welcome. You're welcome. JK: May, that is brilliant. I I do not I just want to say, Ian, thank you so much for that idea, mate. That was brilliant. It's worked really, really well. Dave Warburton: You are both you're both so welcome. You're both welcome. Ian Storey: But serious I'm serious though, thanks Dave, because that's working really, really well. And we're getting consistent with that now. And it's paying dividends, you know, not only getting inquiries before we launch on right move, looks so impressive to the seller, but really, really good for your brand locally. You know, the the buyers are seeing you doing all this sort of work, not just sticking on right move and hoping for the best. so things are in a good place, chaps. I think things are in a pretty good place. Yeah. Dave Warburton: do think we'll just touching on that point before about houses to sell and people viewing with houses to sell again some homeowners don't like it but you've really got to gotta work on them I mean I I think that you know if it if it is just somebody that repetitively view views houses with you and that they're just not taking anything serious so that they won't book a vow I understand that but if they are having their home valued and they are serious about moving should they find the right ones You know, there's there's some people that there's no no amount of convincing of going to go on the market without finding something. They just they just have to find the right house. But you know, we've we've done we've got an off market chain going through that's worth like fifty to sixty thousand to the company from from doing the thing. Ian Storey: Yeah. We're in that, I think. Dave Warburton: Yeah. Yes, you are, yeah. You're Ian Storey: In that channel, yeah. Dave Warburton: in that chain, yeah. And that that from doing that sort of thing. and we you know, we agreed a sale on one, we've agreed two sales out to the last week, previous part. But that came from a lady who viewed it and had a house to sell, reluctant to offer until she got clarity that they would seriously consider it. and I just I I go I went back to the homeowners. I said, She has got a really saleable home. I've valued it, it's great. we got a market ready. I said, It's it's a no brainer for me, and we did it, and she and she is the buyer. She is the buyer. We sold her house in a week, you know. So Ian Storey: Yeah. You just gotta educate your clients correctly because so many of them think the right thing to do is to not let anyone view that can't proceed, but they're just wrong. And but it's obviously not their fault. I appreciate they've not been educated correctly as to why it's the right thing to do. We list in our marketing plan, we list properties that we've sold that are now completed sales that when the buyer viewed they couldn't proceed and they ended up being the buyer. So we're not in the market where you can be you can be overly picky. Of course, you don't want time wasters. You know people who are unrealistic and on the higher end you want proof of fund before they view and all that sort stuff, but but it's a it is a no-brainer, but you just got to educate the client correctly and then eventually they'll see, you know, they'll see why it's the right thing to do. Dave Warburton: I think a good pre launch helps with that as well because again we've we've had you know you get it both sides of the scale, don't you? We had a property the other week where I think the the the initial pre launch video had about hundred thousand views, really amazing feedback. and we had something like ten or eleven view ins lined up to see it. It's not in the right move at this point. So at that point you go through it and go, right, who wants to see this house? well there's there's eleven people, six of them Are all chain free and ready to go. Five of them are not ready. You know, they've got houses to sell, they've not had valuation. In that situation, you go, well, listen, to the guys that have got places to sell, we at the moment we might not be able to get you through the door, but let's get you valued, let's get you valued quick Ian Storey: Yeah, yeah. Dave Warburton: and see if we can get you there. and then I I think on the flip side of that, you know, we had another one where we did the pre-launch and the number was nowhere near what people were expecting. So We had that conversation with the owners. They changed the price before it went to right move, but there was a lack of interest there. And that is the house that's just sold to someone with a house to sell who Ian Storey: Yeah. Dave Warburton: at that point wasn't on the market. So so it is about educating your market and just having those Ian Storey: Yeah. Dave Warburton: positive conversations. You can't be picky. In COVID, it was like if you've if you've got a house to sell, forget it. Ian Storey: Also, Dave, on some properties, you know, even now you you put some on and you get 10, 20 viewings, don't you? But you do still get that. You know, and obviously on those ones you wouldn't do that. But but a lot of stuff, especially when you're selling mid to higher end unique one off homes, certainly ones that are sort of north of a mill, generally less buyers, you know, you need to be thinking a bit differently. But being firm and educative, that's not a word, with your seller is very important. Dave Warburton: And also I think on the flip side of that, it's a great opportunity to educate the buying market to say that houses like this, when they come up, they don't hang around and you're gonna have competition and put yourself in the shoes of the seller. What what would you rather be dealing with? You who has a house to sell or him over there who's chain free. You'll get yourself market ready. Use these opportunities. Ian Storey: Yep. Yep. Get your blocking ready. A great example of this. A great example of getting people in is this. So we have we've got a house that we we weren't sure really whether it was offers of a seven fifty or offers over eight hundred. It's lovely house, but it needs a lot of work. I was saying to seller, really, I think offers of a seven fifty is more realistic when you look at the market, blah, blah, blah. But we had this person that wanted to view it off our socials. We got them in, they offered eight twenty. And we wasn't on right with them. I said to the seller, proceed with them, don't put it on right move. Let's see where we can go with them. He was like, I'm not sure. Maybe I should open it up to the whole market. And, you know, are there any other buyers that might pay more? And I said, Well, John, really, you know, it does look when you look at the data like this is a really good price. Anyway, we we proceeded with that party. They had a house to sell. They ended up not being able to sell that house. So the deal fell through. But my point is it's it's gone on the market and hasn't got as high as eight twenty. So it's really shown the seller that I was right to try and go with those people at the start because it was such a good offer. JK: Mm. Dave Warburton: Well, d do you know what? You're right. It's a great, great ex great example of that, because if he had opened it up to the competition and it fell flat on its ass at that point, then the buyers all of a sudden get the leverage. I've Ian Storey: Yeah. Dave Warburton: I've got a house at the moment, it's on at one point five. it's a tricky sale because of the circumstances of the owners. Now, the guy came in, he's a really savvy businessman, an excellent negotiator. He's been he's he's been very It's been challenging to deal with him in a in a positive way. We've had some good back and forth. You know, I've enjoyed it. And we talked quite candidly. You know. Ian Storey: Another type. Dave Warburton: Now he offered one point three and he sat on one point three for weeks, but he kept in touch with me all the time. And he wanted to know because we had a we we had a purple patch of activity. I got another offering at one point one. There was another in offering at one point three. And he just kept holding out and holding out and holding out and playing it, asking the right questions, trying to chuck furniture in. taking his time. I'd already verified his funds and he was like sort of saying, you know, I need to go and have a look at this, Dave, speak to my financial advisor and all that sort of stuff. He took his time and what he did was used the market to his advantage to say, I'm going to wait and see what everybody else does before I show my hand. And he played it really, really well. And it's the same and he's he's going to get that property probably for 1.4. He's the only person in the running now. And if he i he he may or may not walk away. But if he does, then they're left with no one. If they if he if he gets it one point four, I suspect he'll be quite happy. but i it's one of those where again he's used the market to his advantage. If that was if that was before right move, I think that and it had been opened up to loads and loads of buyers and nobody had come in, he would have gone pfft well my offer's one point three, one point three five. It's the fact that we had that purple patch that was able to get him to one point four. So I I I totally agree with you. I think if you get something very strong like that and it's beyond the market data, you know Deal, deal, basically. Educate. Ian Storey: Yeah. And then if it doesn't work out, you've still got the upper hand. There's other examples I could give you along the same sort of lines, but I think you as the agent looks you show yourself in a good light to the seller. Because go it trying to go with that person at that price was a good the right thing to do because there's no one else anywhere near eight twenty now. So it sh it sho it sort of backs up what you're saying. Dave Warburton: One of the one of the the downsides to that is well, we had eight twenty in, you know, when th when the seven sixty comes in Ian Storey: Of course. Of course. JK: Mm. Ian Storey: But I think y if you manage that correctly. Dave Warburton: Yeah, it's true. No, you're right. I mean, we again we we've had it on both ends of the market. We had a a we locate one, which is we've sold it once at three fifty, we've sold it once at three forty. Both sales fell through, unfortunately. He's now on offers over three hundred and struggling for viewings. And there's another one that we've got at seven fifty. We sold it first week, seven twenty-five, buyer pulled out. Sold it again at seven thirty-five, buyer pulled out. And then it's sat on the market at seven fifty and he he he can't reduce to s like his offers over seven hundred. He's like, But we've had seven thirty-five, we've had seven twenty five. I'm like, I know, but it's not the market's moved, it's not real until it's gone through. so it can it can backfire a little bit sometimes, but at the same time, you know, you've just gotta like I say, you've just gotta be educating your market on what's actually happening and it's so fast paced. And in fact, we had it in the group this week, didn't we, in the TCA group? obviously we've done The quarterly letter, it's all based at that point on the June house price index data because you know Q1, Q2, so it's a Q2 update. we we've obviously marked at what point the data was applicable. But then, you know, you send out nine thousand letters based on that data. The day you send them out, all the data changes. You know, it's so fast JK: Mm. Dave Warburton: paced. Like all the mortgage market changed because there's rumours of a an interest rate hike. so the banks have you know, push their rates up a little bit. So all of a sudden your positive outlook on the mortgage market might not look as positive by the time the letter lines. But that's just the way the market is. It's so fast paced, particularly from a mortgage point of view, and with everything going on in the economy and in the world events, it's going to it's going it's go it swings and roundabouts. Sometimes it's going to be incredibly positive, sometimes it's going to be negative. But the one thing that it isn't, which we touched on last week, is it it's not a bad market, is it? There's buyers out there well presented homes and the right priced homes and all the data, all the commentary backs that up and and that's ultimately what you've got to do, educate your market. JK: It's a transitional market. I was obviously I I hadn't mentioned I was with Gatesy last night. I went to London to see a guy called Roy Sutherland speak. Dave Warburton: Hang on. You were out last night. It's all making Ian Storey: That's what it Dave Warburton: sense it's all making sense. JK: Did not I didn't drink, you know me, I don't really drink. So that's not that's not why I look dishevelled. I just haven't done my hair yet. Dave Warburton: Mm mm. He's he's he's he's been drinking and he's he's got a he's got stitches, have you noticed? JK: Yeah. So anyway, there's a guy called Roy Sutherland. He wrote a book called Alchemy. And apparently Gates has got a signed copy. And we went to go and see him speak last night in London. And that was it was a it was a good event to be fair. we learned a lot about so there's different things that apply to different industries that are also applicable. So like they were saying the NA NHS, a quote from for people in the NHS was They hate how things are, but they also hate change. And that's I think that's also applicable to the estate agency industry for sure. there was a funny anecdote about health and safety and how there are like a hundred and thirty-five work related accidents a year. something like I think it was like five five people eat every year die from dishwasher related deaths. so you know how like when people load the dishwasher and they've got one of them cutlery drawers at the bottom and they they do it they stack it with the knives up. 'Cause they think their knives are gonna get cleaner if they're they're facing upwards. Apparently five people a year are killed in dishwasher Ian Storey: No right. JK: related industries. And I was keen to point out to Gatesy, and I sent in the video this morning, I actually invested in a dishwasher that has one of those pull-out cutlery drawers at the top. Ian Storey: Yeah. Nice. Well done. JK: so I just thought, you know, me being an amazing person that I am, I just just thought I'd I'd get it out there. and Ian Storey: Don't wanna make two jells, but I've got two dish crushers. JK: and that was another thing that came up. So Ian Storey: What's that? JK: talk to me get just quickly, talk to me through the science of coming through two dishwashers. Ian Storey: Valued a house early on in the company six years ago, sold it actually, and valued it. met lovely house and they'd done a mint kitchen and it had dishwasher. I like, fucking hell, that's a nice idea. You know, family, loads of washing up, obviously, all the time. So the last two houses that we've done, we've put two in. The last house we had only had space for a slimline and a biggin. This house that we've just done with two full size ones, game changer, because that they are full. All the time. Twice a day, they're both on twice a day constant. So you've never got really never got any dirty washing on the side in the kitchen. And I'm a bit fastidious about the kitchen. Me and Dave have spoken about this a few times. I like the kitchen work service to be superb all the time. So I've got like a lovely cloth, one of those ones with the absorbent, you know, where you wipe it and it's sort of like a shiny leather. So I love a kitchen looking mint and two dishwashers. I think it's a no brainer. You're gonna tell me something different now. JK: No, not no, no, just it it came up 'cause Rory Sutherland really wants two dishwashers but his wife won't let him. Ian Storey: Yeah, 'cause it's 'cause a dish a dishw when you're doing a kitchen, maybe a kitchen's like thirty thirty five grand or whatever, a dishwash is four hundred quid. So it's nothing really in the thing. JK: Yeah. And there's always one dishwasher that's empt that's clean and you that you can use and it's stored and one for dirty and then vice versa. Like Ian Storey: Yeah, honestly. Brilliant. Brilliant. JK: game game changing idea. Ian Storey: Yeah. JK: what what made me think of that was I I was A was gonna mention that, but B, when we were on the train, we were talking about interest rates and Gatesy said something interesting about how for every percent of mortgage rate goes up for like your average first time buyer or your average buyer. it affects their affordability by 10%. So Ian Storey: Well, yeah. Dave Warburton: Repeat that. JK: for every percent on the mortgage, it affects the buyer affordability by up to 10%. So somebody viewing a house at let's say 310 goes on the market at 310 when a house is worth 300 in the beginning, nobody views it, nobody buys it. Mortgage rate goes up in four weeks by one percent. That three ten house is now a two eighty house. And it's a bit like that analogy of chasing the heavy ball downhill, isn't it? If you don't price in the market at the time. and I think the house has got to be to to get the money, because I think buyers, you know, if they're affected by let's say that that sort of level by one percent, that can what, 150 quid a month, something like that, 200 quid a month. you know, the house has got to be really good for them to justify. If they've been in the market, because that we have a saying, don't we? It's not how long you your house has been on the markets, how long your buyer's been in the market. And if your buyer's been in the market for that time, they've viewed the house and then they're now to the tune of 150 pounds down a month, 200 pounds a month down, based on what they saw previously, a there's either got to be a change in the price or your house has got to be bloody good for them to swallow that extra 150 quid. So I just think that there's always a conversation to be had around pricing correctly early. Because if you get the price wrong, you could I mean, classic example, pre-launch strategy, someone that I implemented and came up with myself. we we had a house that so in the gold dust range. data kind of suggested it would be anywhere between four fifty and four seven five. And we sort of punted it out on Facebook at four seven five, no takers. Everyone said it was too much money. had a chat with the sellers, did offers over four fifty. Got 13 people around back to back on a Friday afternoon and sold it at 475. So like that again, it's that psych biopsychology. How you know, we we all know if we'd have launched at 475, the chances are the viewers may not have come through the door. They'd have made the offers at 460, 465. And if it didn't go anywhere at that sort of level, the then the next sort of logical step is to get onto a next price band at four fifty. And but by then You're already on the market and you're already, well, nobody else wanted to pay four seven five for it. So why am I going to pay four seven five for it if it's now offers over four fifty? Dave Warburton: It's a I mean again, you you're using a a real life example there, JK. So just to sort of sidestep a little bit for people wanting to try and get reductions or get properties on at the right price, there is nothing more powerful than real life situations. we we've had one ex i i really similar. it's been sat on the market for eight hundred and fifty thousand pounds. it was it funnily enough, it it was what I described before. It'd been all at this price previously. with a premium agent, one of the big ones. and it it it had no interest whatsoever. And when I went around and spoke to my vote, I said it it needs to be probably 800, like at the top end really. it was all fine. And then when we'd done everything he decided, look, spoken to my mum, it was her house, she really wants to try again at 850. And I thought, right, great. And the the the the classic we're not in a rush type people. So it's it's gone on the market at eight hundred and fifty thousand in s in in not four six months, in four months, it's not it's not had a single viewing, not one. And they just sat and sat and sat and sat. Eventually they agreed to come down to offers in excess of eight hundred. this this week we have just agreed an offer at eight hundred and twenty-five, which is phenomenal. They they could not get a viewing at eight hundred and fifty. They've Ian Storey: A Dave Warburton: You know, and people who say to you, like, well, they'd view it people would view it anyway and they'll make an offer if they really want it. Ian Storey: No. Not true. Dave Warburton: Not if they can't see it, John. Not if they can't see it. So Ian Storey: No. Yeah. Dave Warburton: sometimes it's about bringing it into a different price bracket and making it work. And for this particular family, that price bracket was eight hundred thousand pounds. It eight hundred was the top end of the budget. Top end. They would not have seen this house if it'd been on at 850. They saw it from the reduction at 800. The reason we've agreed 825 is because the owners are including some furniture and stuff like that. So there was there was something to be done. There was something to be done there. We were able to negotiate. But to get to 825, and they couldn't get a view in in four months from 850. And you know, I've got quite a few examples and I've said it before on the pod and and we've talked about it as well. But I think even using some examples of where your houses are not selling and being completely honest about it is powerful. You know, we've agreed sales in the last sort of three months where the the the prices are nowhere near where we started. And it's no one's fault. It's just that the market has changed considerably. You know, we followed the data, the price per square foot was right. We've looked at what happened since they bought it and now what what it should be worth. We all agreed the same. The vendors were realistic. compar you know to the market conditions. Unfortunately it's just not panned out that way. But with work on these particular houses, we've worked with with the homeowners that have, you know, understand that and are working with the market conditions. They've eventually sold. And you know, we had one at 850 that was agreed at 760 a couple of weeks ago. So to so to be able to use that story and say, I've got a client round the corner. His house started life at 850. It's been on the market for nine months. He's had 10 viewings and sold at 760. And he only sold at 760 because we generated competition from a s 750 offers over asking price. Now it's quite powerful. You can save nine months by by looking at two or three of these test cases that I've got in your area and going to the market strong at a sensible level. Yes, we can test the market, you know, for five to ten percent above what you think it might be worth. But are we just gonna be wasting time like John did over here, like Kevin did over here, like Sandra did over here, whatever. It's so important that you get that right price point. And I think that test cases and real life scenarios are the way to go. And me and you spoke about this briefly yesterday, Ian. But that you know, the million pound analogy, or can we go on at a million fifty because it is worth that? The other, the flip side of it is, you know, when when homeowners say, Yeah, but if you go on it offers over a million. They'll offer me 850 and 900, they'll give me stupid offers. Of course they will. And you've just got to manage that expectation and condition your homeowner and say that's yeah, ultimately that's what it's definitely coming. No matter what I tell them, you'll get the odd one or two that will offer you something derisory. We just get rid of them. But let's look at the flip side. If you're into a new bracket of buyers, those buyers that see it, who are at the top end of their budget and k don't d don't think they have a penny more than a million's if they go and see it and fall in love with it. I promise you they will beg, seal and borrow to find that additional twenty five, thirty, forty, fifty. And we want those buyers. We want them. Ultimately, we want eyeballs on this property. We want to cast the net as wide as possible. So pricing point's so important. Ian Storey: Right, I signed Dave. Dave Warburton: Sign here in, sign here. For everybody Ian Storey: Yeah. Dave Warburton: who's listening, I've just shown Ian a contract that signs him up at two percent plus fat for his house that's worth four point two million. Ian Storey: Wait, do you know what, just talking about contracts, we had an interesting situation this week that still isn't really resolved. And I know you and me touched on it last night, getting frustrated with sellers who just think that you won't you'll do it for free and you'll bend never backwards. We Vic got a great listing last week, offers over nine hundred thousand. Really nice. It's a grade two listed, lovely old house with a big plot, nice village, blah blah blah. Sellers were bit odd, you know, if we're being honest. They're a bit hard work. Anyway, they said they're gonna go ahead. The paid the marketing fee. Fine, no problem. $7.50 plus that. We've booked in home staging company because it's empty. So to go and give them a quote. Two of those this week. And they spoke to Vicky earlier in the week and said, we've heard your contract. We noticed that you've got a clause which covers any buyers coming back up to six months after the end of your term. could you if you could remove that, we'll sign. So I I rang them and spoke to them. It was hard to get hold of her anyway, spoke to her. And I've explained, look, John, she's not called John. Look, John, Dave Warburton: Yeah. Ian Storey: we need a clause in there because we might introduce a buyer on the last day of the contract. You terminate it. Like a day later, that might that buyer might come back, or a month later, or a week later. And if we've shown them around and we've introduced them to the house and we've generated the buy, then our fee's due. And every other agent you go to will be happy with that situation. They'll understand the situation. They'll be very used to it. We'll give them a list of names. Promise you, every agent will know that. And they just wouldn't have it. She wouldn't, she wouldn't. It's so hard. You feel like you're banging aga your head against a brick wall. And I sort of left it with her and she was going to speak to her husband and come back to me. And she's not really. And maybe that's an extreme case, but it's just so frustrating when You know, they they do f some people do treat you like you're doing it for free, you know. And it's hard to get your head off. Yeah. Dave Warburton: I think we're in that industry and do you know what th we're probably we are the we we've as an industry we've made that problem ourselves. You know, it's so exactly race to the bottom on fees, Ian Storey: Yeah, of course. Yeah, I mean not charging up front fees is a massive thing, isn't it? People get used to it. Yeah. Dave Warburton: not differentiating yourself. the you know, I think we've if you you can put estate agents up there with the snake oil car salesmen, things like that, can't you? You've probably you've probably got Ian Storey: Yeah, exactly. Yeah. Perception wise. Dave Warburton: a list of people that People hate you've got terrorists, you know, Ian Storey: Ankers. Dave Warburton: bankers, thieves, estate agents, they're in there. Ian Storey: Yeah. Dave Warburton: but you know, I I think we've we've protected ourselves somewhat from some of these stupid scenarios. And I think when you get well, you know, our contracts are quite robust now, it covers all the stuff like that. and if anybody flags anything, I I immediately think, well, red flag, what are you actually gonna be like long term? What are you gonna be like in this relationship? we've we've had a couple of those quite recently, to be honest with you. One after we'd already started the marketing, where it's a case of somebody else wants to come and view the property that viewed it with someone else six months ago but had didn't actually make an offer and thought I'm I know, but at the end of the day we've done all the work and if they Ian Storey: Yeah. Dave Warburton: come back and we renegotiate, they've come back on the back of the video, the marketing, all that sort of stuff. It's really clear in the contract, but then when it actually happens, it's like, Ian Storey: it's different. Yeah. Dave Warburton: what? And then yeah, s similarly, prior to going to the market, agree to come to the market, read the terms and then question a few things about what if I introduce my own buyer? How does that work? What Ian Storey: Yeah. Dave Warburton: what you mean after we're already on right move and we're already on social media, we've already done a video and all the photos, and that's not influenced them one bit, you know. Ian Storey: Yeah. Yeah. Dave Warburton: It's just that kind of thing, you know. And and they do, they want to try and wriggle out of it. And I just think that those are major red flags. And to Ian Storey: Yeah. Dave Warburton: be quite frank, we just we just don't need it. We just walk away. I'd just walk away. I'd I'd rather be comfortable in the relationship with the client. and I think that like I say, as an industry I think we've probably caused that. And it's you know, people like ourselves and other good agents looking to get upfront fees and command higher fees and do a great job that are changing that, slowly but Ian Storey: Yeah. Dave Warburton: surely. Ian Storey: Yeah indeed. okay. Probably probably reasonable time to wrap up day, but what does the rest of your week look like? You got valves today, he shoots or Dave Warburton: I I have a couple of vowels today. I have three tomorrow. I try and keep Ian Storey: Okay, nice. Dave Warburton: my weekends free now in, so I'm not doing anything really on weekends, which is great. I've got one in fact, next weekend I've got got a bit of work to do next weekend in terms of valuations. But that'll be the first one I think. I can remember for a long time where I've actually had to physically be in work. probably like yourself. I like to be a little bit at home in the mornings just to make sure everything's alright, get my week set up, review my week, get my week set up the holy week. But apart from that, not much. But yeah, valuations, two today, three tomorrow. I've got something new starting next week, so looking forward to that. but yeah, busy. And then I've got a holiday in a couple of weeks, which I'm looking forward to. What about you? Ian Storey: We've got full day in the office today. We're doing a a team meeting this afternoon with our with all the creative team to work out what we're gonna do moving forward and what the sort of results are that we want out of it. So Max is gonna be leading that. We're gonna create like a stories creative funnel for each bit of the business that we want to focus on creatively. tonight, Martha's in a dance show, so I'm gonna go and watch that. And Dave Warburton: No flop. Ian Storey: then tomorrow we're going to Chester Zoo. Dave Warburton: mate, what? Ian Storey: so I'm gonna spot if I can see any animals that look like you and I'll send you some photographs. Dave Warburton: We already we had to discuss that before we came on air and there's lots Ian Storey: Yeah, if we had. Dave Warburton: of them. So maybe share them next week's pod. Right, Ian Storey: Okay. All right. Deal. Cool. Dave Warburton: good place to call it. Thank you everybody for listening. We will see you next week. Ian Storey: Bye.