Now, when is that time machine going to be ready for action?

Have you ever seen the movie, “Hot Tub Time Machine”?

Silly, far-fetched, yet pretty funny none-the-less.

The part of this movie that made me laugh and say, “If only…”, was where the character ‘Lou’, who had been dragged back into time with his buddies, was back in the present day hosting a lavish party, in his mansion, covered in gold, sporting a nicely implanted head of hair and surrounded by gorgeous women – all based on his massive internet business: Lougle.

What discovery, business or world changing thing would you like to go back in time to invent?

Mine’s pretty simple: Realestate.com.au

From the purchase of a domain name whilst working from a garage in the 1990’s, now to a multi-billion dollar behemoth that has the property listing game sewn up – “If you’re not on Realestate.com.au, you’re not in the market!”

True in every sense.

With over 90{5be8b5650852dcf96a34828ba5a88d9285f6c7439f02c8133f6b05e7d943eaff} of property buyer research and searches being attributed to REA and to a lesser extent, Domain, I don’t know of an Agent or property seller who would be game to sell without listing on the REA portal.

When I first started in real estate in 2002, online searches represented about 25{5be8b5650852dcf96a34828ba5a88d9285f6c7439f02c8133f6b05e7d943eaff} of buyer activity, today that’s almost the only place buyers look – on their mobile or PC – especially REA.

Whilst REA won’t have a bar of anyone saying they have a monopoly in the online property search space, their brand and its performance is almost unstoppable.

I’ve had countless ‘wannabees’ approach me to list my properties on their sites because, “We are here to give REA a shake up.” My immediate answer is, “Do you have a spare $500million to do that?” “Ah, no.” “Ok, I’ll stick with what works best for my clients and my business. Let me know when you are neck and neck with REA”

REA know their reach and power. Good luck to them. (Can someone hurry up with that time machine?)

And by them knowing that, they can pretty much dictate their pricing to agents, which flow through to the consumers – property sellers.

Only 20 years ago and beyond, it was the newspapers and magazines who could charge what they wanted for you to advertise your home, it was almost the only mass media available.

Now print media is struggling (dying?) and the online world is where it is at. And REA is it!

REA now have the luxury of implementing yearly price rises on their online listing products, and as of June 2017, prices will rise anywhere from 10{5be8b5650852dcf96a34828ba5a88d9285f6c7439f02c8133f6b05e7d943eaff}-20{5be8b5650852dcf96a34828ba5a88d9285f6c7439f02c8133f6b05e7d943eaff}.

With a changing Real Estate landscape, no sector will be immune from these rises and will have to pass them onto the consumer.

Whether you are selling your own home or property with a DIY or cut price group, or hiring a full service agent, getting your property in front of buyers will cost more, so home sellers will be looking for the best deal on commissions and fees to off-set these rises.

REA’s profits will remain healthy and properties will continue to sell with their expert exposure and digital savvy.

You have to love a great success story.

Did I mention I was still waiting on that time machine? Just checking.

“I won’t be giving anyone Dad’s bank details. I’ll go to the bank, get a cheque or cash, any go their office and pay them.”

“Why? That is almost a whole morning or afternoon lost every month when you can set it up automatically.”

“No, I’ll stick to the old-fashioned way.”

So once a month, my sister, fights for parking, trudges into the bank, pulls out my Dad’s ‘Bank Book’ asks for the appropriate amount in a cheque or cash, waits for the teller to do his/her stuff, walks back to the car, fights traffic for the eight mile, almost thirty minute urban crawl to my dad’s nursing home, waits for the administration manager to see her, hands over the money for his monthly ‘top up’ fee, waits for a receipt, then goes and sees dad for ten minutes because she doesn’t have ‘much time’ left and heads back into the fray.

I gave up ages ago trying to show her the ‘set and forget’ time saving method of doing business with internet banking, but she believes hackers are just waiting to pounce, not only on dad’s meagre bank account but also her email address which has three emails in the inbox – two are tests from me and the other, a shared recipe from one of her girlfriends.

I can see Anonymous headquarters mobilising to hack and steal that lone recipe. But a good lemon meringue pie is to die for!

The other 99{5be8b5650852dcf96a34828ba5a88d9285f6c7439f02c8133f6b05e7d943eaff} of us are embracing and working with the technological innovations that enhance and simplify our lives. Innovation and change are having a huge effect on the way we live, work and interact with our fellow humans.

The pace of change is, to some, frightening; to others, it represents huge opportunities. Long established industries are being challenged like never before. New players, who have harnessed the power and connectivity of the internet, have changed how we think, search and connect in just a few short years. By leveraging this connectivity services and products that we paid small King’s Ransoms for are now much cheaper and easily accessible.

AirB n B – Accommodation
Amazon – Books – now almost anything
Xero – Accounting
Uber – Urban Transport
Booking.com – Holiday Accommodation
Google – The ‘Search for Anything’ platform of them all.

These are only a handful of the innovators and ‘disruptors’ that are now becoming or have become household names.

When I ask my young adult kids how they are getting home from a night out, the response is, “We’ll get an Uber.” Only three years ago, it was, “Hopefully we can get a cab.”

Ok, so what about Real Estate?

In Australia, the Uber moment is here, yet only 5{5be8b5650852dcf96a34828ba5a88d9285f6c7439f02c8133f6b05e7d943eaff} of Australian Home Owners are taking control and selling their own home without paying a substantial commission.

Why?

Sadly, we are still a conservative bunch and not good a breaking habits.

When you compare the Sell Your Own Home market in the U.S. represents about 20-25{5be8b5650852dcf96a34828ba5a88d9285f6c7439f02c8133f6b05e7d943eaff} of property sales, Canada, 30{5be8b5650852dcf96a34828ba5a88d9285f6c7439f02c8133f6b05e7d943eaff}+, U.K. 20{5be8b5650852dcf96a34828ba5a88d9285f6c7439f02c8133f6b05e7d943eaff} and even New Zealand 10-12{5be8b5650852dcf96a34828ba5a88d9285f6c7439f02c8133f6b05e7d943eaff}; what are we doing? Is there a law against selling your own home? No, there is not.

The issue in Australia is that we have a well-entrenched, well-armed traditional Real Estate industry that has, for decades, repeated the same mantra that has been followed ‘zombie-like’ by hundreds of thousands of Australian home owners year after year – YOU MUST HIRE AN AGENT TO SELL YOUR PROPERTY, ITS TOO RISKY TO TRY IT YOURSELF.

To that I call BULLSHIT!

The power, leverage and connectivity of the internet allows any home owner to get the job done themselves and avoid the fees that go with using the traditional method. Just like Cabs or Ubers for short trips, people now have a choice when it comes to selling their home – traditional full commission or supported low fee.

The time and money saving alternatives in almost any industry you can imagine are here or coming…and fast, including Real Estate sales!

That reminds me, I must see how my sister is going. She mentioned she might sell her home soon. I’ll see how her search in the Yellow Pages for an Agent is coming along.

Yes, just like you, I eat lunch. Albeit for the amount of time it takes to cram something reasonably nutritious into my mouth to stave off starvation. Being a Property Professional, some may believe I don’t eat like regular humans – surviving on piping hot lattes whilst chatting leisurely on my mobile phone at a highly visible cafe or quaffing champagne and eating smoked koala loins at an industry junket.

Well the reality today was – a kebab from a reputable kebab emporium! Half a pound of unruly, yet delicious meat, salad and hummus. Helping all those owners who are selling a home privately, sometimes only allows me five minutes per day for food intake (it is in our agreement fine print, along with 6 hours a night sleep and two toilet breaks), so I thought I would take the chance today and linger for about 8 minutes over this luscious kebab.

Then to numb my brain for a few minutes, I saw a copy of one of the glossy celebrity tabloids in front of me at the salubrious staff meal table. I flicked through the pages, which is not easy to do with two hands holding together the writhing meat based beast.

Then I saw the headline that led to an involuntary spray painting of the meal area with the half chewed contents of my mouth (remind me to leave the cleaner a serious tip this week and tweet Prince William an apology for the hummus that fell on Baby George’s head). The headline read, “My Drug Battle.” In short, some exceedingly handsome Euro-Asian/Native American minor part young actor, draped alluringly over a tree stump, was confessing to the world that he had beaten a heroin addiction and was now clean thanks to everyone from the girl who got him hooked, to the Church of Benny Hill. Admirable my boy, most admirable.

How times have changed. In my past life as a Police Detective, you could not get a ‘junkie’ to admit to breathing, let alone whether or not he was using or supplying the ‘gear’ as we used to call it. In the 21st century they give them mass media attention for a juicy admission and offer them a movie role or a reality TV series!!

Most conversations with junkies used to go something like this;

“Detective Smith, Sydney CIB. I have reason to believe you may be carrying and under the influence of a prohibited substance. Can you empty your pockets please?”

‘Oh come on boss, I haven’t used the gear for 3 weeks. I’m clean.” The suspect says as he attempts to empty the contents of his 14 pockets attached to 4 layers of clothing in the middle of a February heat wave, with his feet.

As this search takes place an associate walks by and says to our friend, “Hey Nobby, I’ll be at the Rex at 4pm to get on, you gunna be there?”

“Friend of yours Nobby?”

“Don’t even know the bloke. Yeah, see ya Fitzy. Like I said boss, I’m clean.” Just then some small balloons filled with powder fall out of one the pockets attached to his sweat soaked ski parka.

“So, I suppose you are going to tell me you are a balloon clown on your way to a street performance?”

“How did you guess boss?”

I won’t bore you with the rest of the story, but I can guarantee you did not see this gentleman adorn the celebrity pages of one of ninemsn with the headline, “Heroin to Helium. How filling balloons saved my life.”

It appears that these days, addictions and rehab sleep- overs are all the rage and help to make you famous. Rising above adversity is noble and full of merit, however, I just hope that the easily influenced generations these ‘drugs to fame’ stories are aimed at realise that glamour and perceived wealth is not a natural bi-product of stupidity.

My eight minutes disappeared very quickly, as did my kebab. Our ‘would be’ famous actor maintained his remorseful yet seductive smile as I closed the pages. The thing that I’m miffed about is that his fifteen minutes of fame was longer than my lunch break. Happily I was soon back to showing owners how to sell their own home. Hey, maybe there is a Kebab Rehab?! I do love them a bit too much.

Since the 15th Century, conmen have used the fast in, fast out card trick, sometimes known as the Three-card Monte.

Three paying cards, usually two ‘Black Jacks’ and a ‘Red Queen’ are faced side by side, face down on a raised surface and then shuffled quickly by a well practiced con. The aim is for the ‘mark’, better known as the victim, to make a bet on his ability to pick out which of the face down cards is the Red Queen. If the mark picks the Red Queen, he wins double his stake. If he does not, the stake remains with the con.

The con then shuffles the three cards, and being expert at this art, he/she will ensure the Red Queen is never picked. He may let the odd one pop up to attract more marks.

It’s a classic offer of easy money based on a one in three chance of success. Sadly success is a rare bird in these plays.

Sadly, the three card trick is still the game of choice for some Real Estate Agents. Hopeful and sometimes naive home sellers are an easy mark.

I had a call from an old client, Ray, just recently who seemed to be flustered and in need of some solid guidance.

Ray had listed his acreage property for sale with an Agent. The agent had presented Ray with an offer around $200,000 less than asking price (a 25{5be8b5650852dcf96a34828ba5a88d9285f6c7439f02c8133f6b05e7d943eaff} haircut), and was pressuring Ray to sign off on the offer quickly.

My first question to Ray was, “How did you come to list your property with this fellow?” And before I knew it, Ray was telling me, unbeknownst to him, the classic Real Estate Three-card Monte.

1. Agent approaches potential seller and says, “I just sold the property down/over/up the road for $X. I have got five buyers who missed out and want to buy in the area.”
2. “I will be able to get you $X for your place, no worries.”
3. “Oh, the market has dropped unexpectedly and the best offer I have is $X (way under the suggested list price).

A classic under/poorly skilled Real Estate Agent play that does nothing to help an already trust defficient real estate industry.

I had to dig a bit deeper. “Ray, how many of the five unsatisfied buyers were shown your place?”

“None.”

“Sorry Ray, but you been a victim of the old three card trick.”

I heard the penny drop loudly and clearly.

I then gave Ray some carefully considered advice which seemed to ease his anxiousness, and at last check, he was still on the market at the listing price originally ‘suggested’ by his agent.

There are a few basic facts you need to consider when faced with a Three-card trickster –

1. Agents DO NOT own buyers. Buyers follow property and controlling buyers is like trying to herd cats.
2. No-one, not even John Edward, can tell you exactly what the market will pay for your property. Do your own research.
3. Offers are the beginning of a negotiation process. This is a very sensitive part of the whole deal. Pressuring owners to accept any offer is a no-no!

Sadly, this practice of ‘promise and take away’ has burnt quite a few home sellers and now the alternative, selling your own home, is becoming a very attractive option indeed.

But, should you feel the services of an agent are required, make sure they put their cards on the table – face up!

Immersed, as I am, in the world of property, I have found myself fascinated and almost addicted to an armada of Foreign Real Estate Reality shows which have landed on our shores in recent years.

I suppose the reason I like them so much is that, at times, I feel as though I am watching myself when the expert presenters dispense advice to clients on matters ranging from how to present your home to maximise your price to what colour pen you need to use to sign the contract of sale.

These ‘fly on the wall’ stories have one thing in common; buyers and sellers are the same the world over – whether it be a Condo in California, a Bungalow in Birmingham, a Cape Cod in Canada, or a Waterfront Unit in Wooloomooloo – the behaviours and emotions shown, especially by sellers, is almost identical.

Aussie home sellers, your thought patterns and actions are being replicated on the other side of the world, everyday and vice versa. Whether selling a home privately or through an agent, the patterns and behaviours are spookily similar.

As I relax of an evening and sit down to watch, say, ‘Selling Homes’, which is an English Production hosted by a somewhat foppish but brilliantly straight forward fellow by the name of Andrew Winter, I transform into a spectator watching a game of football or even in a Roman amphitheatre baying at the Gladiators. For me, this viewing is compelling for one reason- the removal of denial it is an art form.

Watching the presenter (and property expert) peel back the layers of denial being harboured by the subjects (home owners) is at times a mixture of exhilaration and quiet discomfort. My wife has looked upon me more than once with dismay as I call at the TV, “I told you. Your favourite purple and green wallpaper has got buyers looking for a bucket!”

Mr. Winter has brought his show to Australia, ‘Selling Houses Australia’ and that has made for equally riveting viewing. Mind bending colours, undefined rooms and ‘watch your step’ clutter inhabit Aussie homes as well.

Recently watching the UK version of the show, Mr. Winter was called in to a ‘Semi Detached’ – we might call them a townhouse – which had been on the market for ten months. The owners could not believe that their piece of property heaven, with its pink and white wall paper, red bedroom walls and wall to wall clutter had not sold. It was only priced 10,000 pounds above recent sales of more appealing, well presented similar homes. Once this was brought to the attention of the sellers, by Mr. Winter, the stoic yet unsurprising response was, “We think our home is better than all the others and we are just waiting for the ‘right buyer’ who just wants to fall in love with it.” Mr. Winter smiled, visibly steeled himself and calmly walked the owners through their buyer repellent home.

As Mr. Winter firmly, yet lovingly, pointed out the issues with the home that had kept the buyers at bay, the torrent of excuses and justifications coming from the sellers almost repainted the walls. After a full scale assessment Mr. Winter set the changes in motion and our intrepid, yet reluctant sellers got stuck into making their home ‘saleable’.

The one thing that fascinates me about English Real Estate, is that even if you hire an agent, the owners (sellers) conduct most of, if not all, the buyer inspections – the agent talks to the buyer and tees up the inspection. If that is the case, why wouldn’t you sell your own home?

Back to the story.. The transformation, done on a shoe string budget, was aimed at having maximum buyer impact. It was now very appealing to a wider market. Do you think the sellers agreed? Oh no. “Its soooo bland. We doooon’t like it. It’s not our taste.” It was at this moment I launched off the lounge and screamed at the TV, “You’re not bloody well buying it….” My wife intervened and handed me my tablets and a glass of water. I felt better.

Mr. Winter’s work was done. The home was re-priced to meet buyer demand, it looked attractive and sold on the first inspection day for close to asking price. The seller’s were ecstatic and Mr. Winter had proved, once again, if you ask for advice from an expert whether it’s in front of the camera or not , it pays to listen.

There are two places you’ll almost never find me on a Sunday morning.

One is Bunnings, the other is any place of worship.

I was born without the DIY gene and have a fear of uncontrolled giggling whilst singing lyrics written between 1 AD and 1500 AD. My Sundays are usually quiet, contemplative and relaxing.

Yet last Sunday I had to make the pilgrimage to…Bunnings.  Eek!

My dogs had made one too many escapes from the yard, and instead of investing in towers manned by guards with high powered rifles, I hatched a plan to beef up security and ‘dog wire’ the crap out of my yard.  Stalag 13 would have nothing on my place.

The plan was to find the “Dog Escape Prevention” aisle and escape shopping as quickly as possible.

But then, as I was about to get into my car, I saw a piece of white paper sticking out of my letter box. Australia Post doesn’t deliver on a Sunday.  Monday, Wednesday or Friday are usually when the postman visits. This didn’t look like the usual smorgasbord of catalogue specials, it was a Real Estate advertisement.

Oh joy!

A local Agent visited our private drive to deliver a plain A5 piece of paper which looked like it was designed by a five year old prodigy during a craft lesson.

Whilst it looked basic I was eager to see what the powerful message could be to myself and 30-50 of my neighbours.

This is the stuff that gets my blood pumping. I always look forward to reading  the latest innovations in Real Estate practices and how the industry is progressing.

I scanned the A5 sheet and there was the ‘Star’ of the show smiling through his “I look like I just swallowed a dog” beard, whilst wearing a neat corporate tie and sleeveless sweater that his wife must have knitted for the photo shoot. He looked like a nice fellow.

Ok, I know who he is, now I just want to know what the message will be that will make me want to call him at 9am on Monday.
“I have motivated buyers.”

The millisecond I read that persuasive and long thought out text I heard someone yell out, “NO YOU DON’T!”

I checked myself and wondered if I thought that or screamed it across the valley.  Yep, it was the latter.

He’s pinched that one straight out of the Old Testament Agents’ Playbook.

No agent ever owns a buyer.

Any buyers on his database is on the databases of every other agent in the area.

Repeat after me – “Buyers follow property, not agents”

Excuse my preaching but this is the key of understanding when selling your own home or using an agent.

Buyers find the properties they are interested online, then contact the agent, entity or organisation that represents them.  That’s how buyers end up on agent databases.

Trying to control buyers is like trying to herd cats.

Buyers scour and scramble all over the big property sites like realestate.com.au and Domain to find their next property.

Sadly, our intrepid letterbox dropper had failed to deliver a message powerful (or truthful) enough to make me, or anyone else for that matter, call him and hand him the keys to the castle.

Real Estate critique over.

Now off to Bunnings.

Mmmmm – sausage sizzle, oh and 30 metres of dog wire with stakes sounds good.