Thursday, October 27, 2011

The Real Estate Jungle...the best and the worst seems to come out in people when the going get¹s tough.

First, let's start with the best....by Saturday night at 11pm I was on a massive high, having had 100% success rate with my 3 property auctions, 2 huge open inspections, a lightening change into 'tails' and onto auctioning at the PinkYellowBlue Ball for Flinders Medical Centre Foundation. What a night, a record attendance of 730 guests, a record $75,000 paid for a single item with Gordon Pickard's Triple 8 boat! Wow, what a thrill!

At my Rose Park auction on Saturday we had 10 registered bidders and a 40 minute auction ending a long battle - yet with a great outcome for all parties, well over the reserve....it sure was a battle! Could the boom be back?

The market is as tight as a drum with spring releases down substantially on volumes last year while buyers are generally tough and conservative. There hasn't been an oversupply created so far this spring... which usually occurs at this time of the year. Weird dynamics. There are buyers everywhere - but they're playing it hard. Sellers are frustrated that they're not (generally) getting sales in line with their expectation, and until they meet the new market pricing , they don't receive any offers. Then the twist: buyers are missing out because they're playing hard ball with vendors and are trying to be too tough. How do you figure that?

It isn't actually a buyers market, yet it is tough. But… at the right price, there are plenty of buyers. So the market is actually settling in to a new phase now.

OK… The Jungle - part two of this story. I've been in real estate since 1978. Even in those days, agents had a certain code.  Not the professionalism expected of today's agents, but there was an order. One of the biggest NO NO's was (and still is) to "go behind the sign". This is an industry term for direct soliciting… for attempting to take business away from another agency even though it is obviously listed by that company, and doing so without invitation from the seller.

This Code was important to 1) protect sellers from being harassed, 2) protect seller privacy, 3) show respect for a sellers choice of agent, and 4) show respect to fellow agents. Wednesday, I spoke to "C.W." from a city based franchise office - after having left a message for him a week earlier. His business cards have appeared on the front doors of our clients' houses with what looks like a hand written message saying  "sorry I missed you, please give me a call regarding your property". I was shocked with the conversation that ensued when I spoke to "C.W." The Real Estate Institute of South Australia (REISA) Code of Conduct only applies to members, so be aware, not every one is a REISA member. "C.W." assured me he would continue placing cards on seller's property doors!  Sellers, you have a right to be left alone. You are at liberty to initiate as many invitations and opinions as you wish, but that needs to be your call.

If you're in business, a Commonwealth Bank customer or just interested in the economy, be sure you see Ralph Norris' exclusive interview with me on Fireside Chat at www.toop.tv.

We need houses to sell, so call me on 0418 824 188.  Time is running out for 2011...

Anthony Toop Twitter: @Anthony_Toop anthony.toop@toop.com.au

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