Million Dollar Agent

Ep. 235 - COVID-19 & real estate

April 07, 2020 John McGrath, Tom Panos & Troy Malcolm
Million Dollar Agent
Ep. 235 - COVID-19 & real estate
Transcript

:   0:03
wait A virus? A virus edition of the podcast.

John:   0:18
I've got to tell you, it's so It's so good that way. Look, Endia. So I want to let everyone know It was a combination ofthe travel. Wrong places, Wrong time. Then the chairman of MBA is John McGrath. He put his hand down and he says, I believe that we need to be together. Face the face And that's why I don't want to do one, but by the phone. Let's do it. So we held off a couple of weeks. Then I started travelling again for four weeks, and then all of a sudden, Troy said, Tom, we need to do MBA And guess what? The chairman couldn't overrule not being based on based because the government turned around and said, You can't do it. Place the face. Guess what? You're going to get the Spotify version not only going to get the Apple iTunes version, you're getting the face. The face version here. Good to see you, John. Good to see you, Troy.

:   1:15
Time of, you know, destroys. Put the beauty philtre on again like you and I. Here we are in stark reality looking three out of 10 and Troy's there is Handsome. Easy is because actually laid some form of beauty philtre. He's got some green

Troy:   1:31
screen backdrop of some magical New York loft studio with the vertical bookcase making us all of very old fashioned

John:   1:38
the guy that needs the guy that needs a least. And on top of that, we haven't even touched on the

:   1:42
audio just to show that just embarrassing shit he's got the John Laws might be a special If you and I sound like gibberish and he sounds like a late night voice, you've got it that you've got to adapt to a changing market. And right now, my geekiness, my tech set up is actually paying off for me in some ways, in some ways, but Tom is an exciting one, right, because this is our first ever virtual live stream that we've done with India with video before. But this is our first everyone where we're live with audience people tuning in watching this, and it was unannounced. A cz well could. We wanted to surprise everyone because we've all been receiving questions and text messages going, and then when's empty coming back, we want it back. We need it back. We need questions answered. This's great. It was It was

John:   2:42
unannounced because the thought came to my head at 8 53 AM after I finished the bear run and I actually just text sews it on DH. That's why it's happening here. But I'm going to say before we go on, we're talking about sound. I allocate two times a day where I catch up on the news. One of the things I catch up on use on is in the evening on the Sky News Channel, and I've noticed that what happens is Zoom or they use Skype. And that is going to be one of the things that because I know, coming from News Corp and I know what they're. Mike. When things get tough, they look at how we can do business in amore efficient way, and I will say it right here. Right now, you will notice postcode. 19 guests won't be flown into studios. Guests won't be actually be taken to a certain spot where you've got these added costs that they will actually use Skype or zoom, go to people's houses and what you'll notice is that they are wearing we'll have about anything. Guess that a lot of them have actually wearing headphones right, and you'll notice that sometimes they were both. But sometimes they just wear one in the they've plugged it in. And that's why, because the sound quality for those that are getting to you zoom. The sound quality does sound better if you've actually got a microphone that you can speak. Teo the Airpods air. Okay, it's snowing. Here is good. It's snowing. Here is good as what Troy's got. Troy's gone off and spent $7300 of our budget on a microphone dry on our porch. Chairman, our poor chairman sitting there. He's got no microphone. He signed up on the cheque, right?

Troy:   4:26
So it's funny you mention that because I think that funny things change our lives right now. I'm sitting here thinking how many times that I go downstairs getting a car drive half a. Now get out of the car, find, go upstairs, have a bit of small talk, then get into the meat of the meeting, then reverse it. And then three hours later, you ended up with a 15 minute good chat and polluting the atmosphere costing time and money could have done six meetings. Whereas this now with Zoom or Skype, whatever you want to use is becoming a really effective way. So I think there's going to be just be good for the environment. There's gonna be a lot less pollution could people will start realising there's something I have to really get on the plane and travel the Melbourne toe. Have that one on one meeting front out, or could I just jump on resume? I think it's an interesting what's interesting time for stop. But I think for technology I said you that thing, I don't know if you read the Post

John:   5:20
I did.

Troy:   5:22
That's very good try. Did you see it? It said yes. And the question. Who is in charge of your Arctic strategy? CEO Seo or Covert 19. Very true, because this technology, until we've been forced to use it being sitting there like we could have done this fall along. I mean, we're having timers, you know, and you've been kind enough to be a guest on daily webinars for our team, And I think with your franchise or a franchise e even an agent, you can now bridges the gap between locations with this technology very effectively. And this is kind of just a good as being in a room. Really S o z, I think

John:   6:01
if I was a CEO now off a large organisation that owns premises in the heart of the CBD that signs off the expenses of one of their executives that flies from Sydney to Melbourne, goes and sleeps at the Langham Hotel, has a mule that rock pool wakes up in the morning, has a meeting from 10 o'clock to 12 o'clock, flies back to Sydney pretty much in the afternoon. Says should have just come back from Melbourne. So they do a few little e mails there, and that is pretty much 1.5 days gone. And including a ll the expenses, including a $900 return ticket. Right to actually have a meeting, I think CEOs, they're going to turn around and say yes, warrant that wass away that we did things we did it for whatever reason. It's got an expiry used by date like milk and cheese has, and I think some of those things are going to change.

Troy:   6:59
E think the airlines we know they're going through a horrific time now and don't wish an ongoing horrific time for them. But I think they're going to lose a lot of business because yes, it's There's nothing that replaces having a human being there, definitely from time to time. I think you know, if you've got an organisation which is sort of up and down the coast around Australia, you do need to do some travel. But I think a lot of it could be effectively and throw up just thinking about our internal training overnight, about how many times you've jumped on the plane on a monthly basis to go to Melbourne, Brisbane goalie Teo, which is a good thing, by the way. And I think it's a good thing and we still need to keep it up. But you probably you could do half of that and after that you could have 20 people here on zoom or sky and just a sort of somewhere doing here today. So you're interesting times. I'm not saying that there's not a lot of pain out there because way always go out to the people that going through enormous. I mean, some people have a lot of blood ones, which is tragic, that this tragic is against a lot of other people have lots businesses, you know, for a friend of your mind, Tom, that started that has the cafe where you and I lead from time to time. He's got four cafes, had to close oval then, too. In Greece, too. In Australia, one he'd just opened up in Park Street five minutes before Cove, it was announced almost. Andi, you know, having the last employees and employees can't pay their rent in. I mean, there's a whole train of tragedy, but inevitably this will pass sooner than later. I think in the next eight weeks we're going to start feeling human again. We may not be back to full privileges, but I think we're going to be somewhat semi semi out. Lock down was interesting. Morrison's done a great job time. I got a weapon on this morning. I think you might listen to a bit of it. We just talked about managing expectations, and right now the leaders around the world have got an enormous job to manage the expectation they don't want the community to feel like this is they're going to end, but they don't want the community to think right. This is all working, so you can kind of get back and start doing your normal stuff. It's a matter, and it's the same in real estate. You certainly want to bend or to feel positive and optimistic and confident about the process. But you also don't want them to be unrealistic about the outcome as well. So the whole managing expectations thing is out there at the moment. But my best view on far from an expert, my best view is I think in 6 to 8 weeks we've already seen the dial turn a bit the case. The number of new cases have started. Tio come back in Australia, They even start to come back in Spain mentally, which is Yusa is still going up. But a lot of countries now that's coming down. I think, as that continues to come down on the dial, comes down towards single digit new cases under 20 they say, is a bit of a magical number. People going to feel like I could breathe again. Then I think we're going toe here, so great treatments that are actually nailing this thing on the head and driving a stake through the heart of Cove. It's so those people who actually do get it, there's going to be a solution. And then, of course, the most important one of the the vaccine that prevents us from getting it in the future. Because once we go back to kind of semi business as usual, our life as usual there are going to be out, breaks down the track. Three months there's going to be someone says are great but the suburb of Melbourne all of a sudden he's got six cases again, so there's going to be a little wobbly bits where people get nervous. But I do think in the next couple of months, But in the meantime, I think when the key messages, the three of us agree with his, let's not wait. I mean, unless you've actually chosen tohave an affordable holiday, which is fine. Some people going to stay long and spend it with the kids, unplug my Internet or whatever I'm going to do, maybe not as the phone if you're still working. There is still plenty of business out there. I was talking this morning, Tom, I think I mentioned Michael Darling on our right office, which is really the epicentre in Australia, are sitting where most of the corona started has been a very high Asian population, and I think there was some Connexion from travel and so forth there. But it was anyway. It was a very high high on the Richter scale. Last week, he did 43 private buyer appointments. He's got sold two properties. On Saturday alone, he did 29. What is he and his team? 29 11 bye replacements on David quarters from Jalal. He mentioned also Troy. On Saturday, he did 12 by our appointments on a particular property that he launched. He got six offers Tom on the day so out of the 12 sixes and put a firm bit forward, and he sold it from 11,000. I'm asking Price only Say that to people that took to make sure that people don't think that there's no business to be done. There is business out there. If you're prepared to Matt's time, let's write words on is one of the first we had was, he said. You were just acting and working like nothing's changed yes, with social distancing. Yes, we're doing that government things, but we're not kind of pretending that this is a whole new world. This is just like business as usual, with a few social distancing things thrown in.

John:   12:02
John Troy, the clients that I've been speaking with and working with, have found ways of getting example on Saturday in half an hour. Seven buyers through the system was very simple. What they do is, they say, I'm going to be at the property at 10 30. I'm letting you know that your to park your car there, that what I'll do is I'll text you as soon as the other buyer has walked out. When you receive the text, you can come in. I'm letting you know that when you do come in that you're going to be walking into the property on your own, not with a big group of people. I'm going to ask you to do it as a quick inspection, and I'm going to let you know that my owners have said if you're in fact finding stage and you are sitting on the fence that they would prepare that could look at it at a later time during health reasons. I'm getting agents that are saying to me, Hey, we're still getting big buyers through using that text message service and what we're also doing is having someone that is such, said the qualified. Like pretty much they've seen the outside. They've seen the video inspection. They've actually had another layer off obstacle to get over, which is, Don't be wasting our time if you're not a serious buyer. And that's how they're putting deals together. And it won't surprised me. John, you were in real estate at a time where briar appointments, Where's how you build deep connected relationships with the buyer? You often back, then have them in your car. Nowadays, it's less of that and you meet a matter property. But I'm convinced that we're going to see larger increases of buyer appointments, post covert 19 anyway, because agents are beginning to realise get deep with highly qualified people,

Troy:   13:52
which is when our experience said this morning, he said his life changed when his business went from being a mile wide and an inch deep, two in each one a mile deep. And so I agree. Look for me. I love open for inspections at options, But they've made the industry very lazy, and I think this is another great thing. Hopefully that will come out of this is going to be people realising that real estate isn't a one day a week job we have prepared for said they do it all on Sunday, then turned up the next Saturday. There is lots of time to be showing by our one on one appointments and my success with one of my appointments, as opposed to open home in terms of numbers. Time was 10 to 1, literally. If I think I have 10 people through one on one appointments first tenet and open, I would have a much stronger outcome from dealing with the one on one. Because you're there, you get to walk through with them. You get to see their reaction. You get to deal with the attention and concerns. Most of time. I take them for a couple country around Paddington, the local cafes. Have you got some time? Let's go and sit down. Tell me, what do you like? What didn't you like? Let's talk through. What else have I got? And I think that that really is another benefit that will come from from this period. Is people start realising the great value of one on one deep connected and listening and asking questions. It opens its hand out brochures opened the door yet Okay, prop through. Good to see you. Call me if you're interested. That's what a very superficial stuff. And yet one on one meetings, you do develop that Syria's Connexion and I think the questions you ask and the feedback you get before, during and after one of one leading is priceless.

:   15:30
Similar to that John and Simon will be met with a lot of people when they're calling potential clients and even past clients. Right now, it's giving them the opportunity to take a step back and have a better in meaningful conversation, as opposed to just trying to transact. We'll get an outcome to progress. The call. So those that are speaking to their client and I'd recommend everyone on this watching this. Listening to this via Spotify and iTunes is toe get in touch with people, reach out and treat with with, um, as you know, an authentic human being, as opposed to just being the person that may be a next year or potential deal in the months to come.

John:   16:05
Troy, there's actually wrote it down Word for word. Sign it from all she spoke at Eric last year. All she does is ring up and says this and she says, Tom, it's a simple a cz This. This has given me a return bigger than I ever thought in my life, and it's made me feel good. Hate Sina Tre Law. The purpose of my call is to simply see, Is there any support? What help I can give you? Dure ing This time that's him. She's forgotten about the sale, and she's focused on the relationship, which is pretty much the short summary off what Alex Jordan talked about today. He basically said, Forget about your commodity and focus on the relationship, right? And you're right, Troy. I think the fact that people have picked up driving time, less time, sort of stress to get Parky has given a margin margin has given him space to be ableto have are 8.5 minute conversation. Not that two minute conversation you usedto have before where you were told. Go makes 50 calls. Go get 30 connects. Go get three appointments. Ticket all off. Like I'm going to tell you manage Stein way. He's He's one of my favourite people on the planet, but he makes a lot of sense, he says. At the end of the day, people have put under a lot of pressure in real estate, thinking that they've gotta have ah Manila call centre mentality when people deep down are looking for a human. Connexion, you know,

Troy:   17:41
way see that nowadays with all the top agents, so they will have deep roots into the community, both with knowledge relationships. There's four things I say to the guys the other day time. There's four things I think often people say to me, What what's what people looking for? What have you got to do now in this environment? Well, the 1st 1 I love is Matt's Gone away act as if nothing's changed, really, in the sense that doesn't mean you under the carpet and you're insensitive to people. But just get on Prospect Lee Cell. It's pretty important. Show properties. There's four things I think are important. One is you have to be car because att the moment there's so much noise and chaos, and we saw it with Alex Jordon today If you are calm, if Alex Jordan walked into my place and I was fearful and then think about doing the right thing and it is anyone going to be interred there, he walked in, just his energy would settle me down, so I think really important to be calm. Second thing is to be confident, you have to be confident because right now there are transactions. That doesn't mean you're unrealistic. And you say that things changed the markets as good as it wass your prices unaffected. Not you. Say, if we go down the past time off, we present the property, right. We price it at today's level with marketed confidently. I qualify the buyers and we negotiate confidently. We will get you the outcome you want, probably within the next two or three weeks, because that's what's happening. We're finding our best agents of turning things around in the fortnight days on market because they have people going on market that a serious they're telling them what it's worth today, not what it was worth three months ago, and they had hot buyers. They're working with that and they're not dealing with the buyers that are thinking of buying in six months. They're dealing with the buyers that have said, I'm I'm still happy to buy the right now. So you gotta be calm. Be confident. Another key thing which you've just touched on their time. You have to be empathetic. You have to sit down and recognise. This is not about happened. I turn your fears into the positives. And how did I just get you to move forward? Sign Here is a buyer or a seller this around same time. How you and the family coping with how you guys feeling about life? What are the things that concern you about putting your property on the market? Is it Jesus? Maybe that we'll get ridiculous offers, is it? We're going to look desperate to the community. Is that the safety factor around our family and our people going to come in and leave Koman germs? What are the concerns? Because everyone now putting a property on the market or indeed by one is going to have some level of concern. So bring it out. Just say, How are you feeling about this? I know it's a little bit chaotic out there, but we're finding things are moving forward. How about you? How are you feeling? And then the last one is You have to have a plan. You have tohave a plan. You can't describe them. So, yeah, let's get on the market. Is the plan ofthe market to start? Isn't a sight for JJ? Is it just qualified buyers? Is it putting it on a and domain? Is it not putting a sign out front when you keep that for another two weeks Is an auction expresses of interest? Private treaty? Is there a price? Is there a price range? You know, and the answer's going to be a bit different for everyone because it runs in slightly different market. But you need to have a plan about where you're going. Take me as a vendor or what you going to do from today onwards. That's going to get me My result in uncertain times. So calm, confident, empathetic, with a plan you turn up and have Siri's of authentic conversations with your buyers and sellers was talking money about cells, but the same approach. Devise. I'm going to tell you we got people They're selling two and three properties a week at the most of it. Not across the board, by the way, our sales have come back, as has everyone in the industry. But across the board, we still have agents and selling two or three properties a week. And as we heard David quarters of Jewel 12 inspections, six offers on the same property sold it in a day. That was the first date launch. So, in effect, that was solved it in the day. So you know there, we have to maintain that positive mindset about this. Otherwise, if you go into the cave, this will be over. By the way. Five minutes.

John:   21:47
Jonny cannot. Can I ask a favour? See these three bottles? Water? I drank him in the last 40 minutes, and I need to actually

:   21:56
Oh, we'll continue on. Will you continue on eso, John? The other thing that I notice is apart from the fact that the plan is making sure that you could potentially adapt that plan as well because the plan you had six months ago for the way you did photography at a property the way you treated buyers at a property the way you engage with them over the phone and email that's changed. So, for example, I'm noticing the most successful agents out there are really focused on video right now walking through the property but not the sales pitch video that were traditionally used to. They're doing Mohr in depth conversation about the property and Mohr doing a walk through as opposed to a 30 minute a 32nd. Snip it off. Here's the home similar to that they're working closer on their social media presence to try and cast the net as faras possible to show that deal's getting done. We've just heard countless examples, and I know these people probably watching this on Facebook and all the other social platforms, making comments about doing deals. Right now that's fantastic. But have you adapted your current plan in the market to make sure that you're reaching every possible customer that you can?

Troy:   23:11
You're right here in this different levels of video. I still think a professional video is almost on essential item as well, but we know right now that just seeing a bit of the Landrum panning out to the garden better the view and that which is well, unprofessional videos do beautifully. No, that's good. But now, since a lot of people almost after a place, the two hour with the inspection to a degree with a virtual inspection I love Lisa Nowak. CE Lise has done a spectacular job over there on the Northern beaches with it. If you haven't checked out Lisa's I know Times interview Lisa on a number of occasions. That's a great example of walking through Matt Edwards from Ballarat office, doing a sensational job with virtual open homes and virtual tours. So he's another one. If you go to our Facebook page, you'll see some of the videos have been doing on. What I love about both those videos is they're not necessarily the most polished. They're professional, but they're really they're raw there. Will sent it there to show you there's of you have a look at that view when you have to wake up that every morning. Now bring it back to the laundry room, which is next. So I think there's room for both levels of videos, and I think you know now playing around with live streaming video is another possibility. I know about Iraq team did I think seven or eight live stream videos about a week ago and off the back of that, a lot of people watched or watch the video video subsequently and then appointed to go and see the property off the back of it. So tell me, were just talking about the importance of video now it was always important, in my opinion, but it's even more important now on whether you do it professionally or you just do your walk through with your iPhone. Which is, by the way, gives you a pretty good. The

:   24:59
funny thing about it is all of this stuff we heard maybe five or six years ago at Eric saying that video is so important and we've all seen that what I like most now right now John and Tom, is the fact that all the technology that we've wanted to implement maybe in 6 12 18 24 months time it's all being rushed forward to right now because we've had to adapt and you know, the people. It shouldn't be this environment that actually makes you start using that technology. And what would be a really disappointing thing is once we get past this and I agreed on is probably only gonna be five minutes. But once we get past, this is everyone goes back into their old ways because I really think there's a massive opportunity for the smart agents to adopt and implement, but then really set the market pace and, you know, really outpace the competition. The changes they're making right now.

John:   25:47
Yeah, can I can I on those videos And I know I was said while I was away. But one of the things that I've learned out of these, let's call of the raw and authentic property videos. I noticed that I make an assessment on not only on the property when I'm watching these videos, but I'm also making an assessment of the agent. And I can't help but think to myself that in some ways these property videos air a little bit like the Wentworth Courier wass 10 years ago that you're featuring a property. But you're also noticing the agent and some of the things I noticed that I like about the ones I've seen because I've been following him. I like the ones where you find the person seems to be the same person on and off camera. I like where they're They're they're the same person. The other bit I like is the ones that they're intelligent enough to. You know, sometimes I find they look better if something there, Papa or if someone else is holding the camera and they're sort of following him through right, I think that helps. I think the other thing that helped also is that a couple of agents have gone to the trouble to actually, you know, get some wireless cell. You know, there's a sound. Helps the video look better A ll these little things that some agents are doing to make their videos stand out. And of course, it's not that expensive to actually add text at the bottom of each video like it's about a buck a minute, Right? So you're doing a two minute video. It's $2 I know what you know. Both you guys are like I've seen you in the past. You'll turn your mobile and you look at a video and you'll often actually play it with most sound right? So what you're doing is allowing for the people that are actually watching video with no sound was that I wanted for up people. But I think to myself there's a great opportunity for people to stand there, particularly now that new school by now has let go of a TTE this stage. And I don't know how permanent is but 60 papers. You know, the went with courier and, you know, the West Curia, nor short time. So real estate agents are going to need to still stay connected and stay visible in their marketplace and communities. And I think videos are definitely going to be the way I know Aria have actually created the platform that allows agents tohave virtual inspections, they call it. Now

:   28:08
there's this free text translation APS out there as well. And ah, lot of the social platforms they're integrating with those app. So you can pretty much do the translation. Um,

John:   28:24
the best. Listen, the guys that have been smashing it is a business called prime estate agents Malcolm Quinn on DH there in Harvey Bay. So you've gotta have a look at him. So what? I actually have got a ghetto webinar with him last week because they were doing these videos prior to covert 19. They call them the curbside video. So the way it works is one agent holds the phone, the other agents going through raw and authentic. Then what happens is they spend 10 minutes and they put it through an act, and I'm going to see if I can bring up the map. Susan, if you are watching this, if you don't mind typing in the comments, the after there's a free act, all they do is they put the video off your phone into the sack. They sort of cut up at once, but I cut it on another spot. The end product. Look, it's not gonna look as good as having two videographers with their flashlights and their wireless mikes sitting there, right? But I have to say we're moving into a world now that is saying like we're seeing it on television, where people are sort of doing, you know, sometimes the quality of the content. He is not so good. But I think people are seeing past that. They like the fact that they see something that's live raw and authentic. So if anyone wants to go up and look ATT Prime Prime agency there in Harvey Bay,

Troy:   29:56
I don't think I agree 100% what you said about not only deliver properly look of the agent and most people in the area that are looking at property. They're also thinking of selling. But I look at many Edwards Ballarat office, and I think that's what sort of person like taking blow through my place. Yes, you've got a sense of humour. You got a great product. I mean, these are people that you're not only seeing the property, you're seeing the agent on show. And I think this is if you're not doing it, actually think you have a postcode bit or even during covert you gonna start losing out on.

:   30:32
The other thing is that with just a CZ, we start to move onto. The next topic is I find myself always watching one video like you'll grab one and you'll see it in your newsfeed, and then you'll start going down like the Alice in Wonderland Rabbit hole and you'll start watching all these other videos from that same person. So the branding point of view and the branding perspective it's a massive opportunity for agents to really show their authentic self and connect with their clients. But you don't know whether it's the live stream video you're doing of a property inspection like we watched last week with Machon. Or it may be a video that they did a market update two or three months ago. You get engaged and you start watching all these videos because we have a little bit more time

Troy:   31:08
to. True, too. True.

John:   31:10
Can I ask both you guys, you know, every morning at nine o'clock to around 9 45 AM You you do a zoom. You generally have, ah, real estate agent in your chain that you interview. I believe this is you committed John and Troy that you would do this to the end of covert 19 locked down. It's been about It's been about four weeks, and I have to say to you, I've had I've had a number of the grab people tell me that they feel ever so connected to grind now, being the brand and yourself, John, I mean, that's gotta be, You know, we use the term some of the best gifts and lifetime bad. The rap was still the lining. All of a sudden, you actually and got an opportunity to contest with every individual gets 300 people there at the one time this consistence this repeatable Connexion with people, Can I ask what it's what are some of the things that you think at your own business or your own personal lives that you've learned? What are some of the learnings you've learned out of co Vered trying, John, that you may continue in your life? Or maybe they've just shifted a thought in your life.

Troy:   32:38
I think we've already spoke about some of the technological stuff which is more transactional. I think forward, I mean I don't see is doing a daily weapon are. But I certainly see us doing out far more regular contact with all that people, which could be a couple of times a week, a za minimum. So I think there is that I think there is people re evaluating priorities. I think we saw this at 9 11 time particular back in 2001 when people started realising that they weren't spending the time with their family that they were looking after their health. So I think for all of this is a good wake up call around prioritising life and realising that business is not the primary thing in those people's life. Shouldn't be health and family comes before it. So there's been a shift towards that. I think, as I hear the agents mindset now is more important than ever and more obvious for those because this coq au vin is polarised. You've got some people that have absolutely gone into a cold sweat and a cave and doing nothing because they're just so petrified. And you and other people like Matt Stein way there's we're acting like nothing's changed. We're just getting on business. And I think the polarisation is really obvious now. And it shows people importance in the world of business and sales, having the right mind set the right conversation, staying calm, staying focused, having a plan and pivoting the plan because things are going to change. Let's hope that there's no covert for the rest of our lives. Another one. But there was something else we've seen. Stock market cross cheque 9 11 cov. We've seen so many things in the last 10 or 20 years that there will be other stuff that goes to go, so I think it's around mindset. How do you deal with these things. And the fortunate thing, I think for us, Tom, people have vintage and perhaps people have led companies and been around strong leaders. Over the last 20 years, we've actually learned that this will pass. Don't panic. Yes, we don't need to make some adjustments. We might even need to make some hard calls reducing We reduce the salaries off our head office staff the other day by 30%. It was It was a hard core. But, you know, we consulted with a number of people and we thought about it. We thought we could put some. We can do nothing. Probably not the most sensible. When when revenues are inevitably going to drop for a period, we could sack a few people, lose some great talent and and then, you know, that would be kind of do it. Or we can sort of do a smaller reduction across a larger group. And we took that because I remember the GFC I really won. The lessons I took out of that time was when you when you're faced with something like this, what You don't want to death by 1000 cuts you don't want to do a little change here or do some or going to small, but you. Actually, if you're making a change and you got to take a bit of paying rip the band, they don't do it. So I'm kind of learned that. So we brought that lesson into this environment where, you know, we could kind of do nothing, wait a bit longer, double round the edges to a five or 10% here we said, No, let's do it right So the board and the executive have taken a 40% pay cut because we wanted to leave, leave from the front, on lead by example and the rest of the team of 30. We made a decision time that anyone apple below 70,000 year, which we feel in most of the places that we were certainly in Sydney and Melbourne. The big cities is kind of what you need to live, not luxuriously but live. So we decided that anyone at that level wouldn't get any pay reduction, so he added some things that were empathetic to different situations. But when you're out there, you gotta learn that if you have to pivot, you have to pivot. If you have to make some tough decisions, you have to make some tough decisions. But your mindset throughout all of that can Ramon strong and focused and calm, and I jump every time the weapon are is to educate and inspire. So we want to make sure people that might have had a bad night's sleep and have bad dreams and wake up on day only three hours sleep and they're worried about this. We want them to come and have somewhere to start each day. Not Karl Stefanovic was great cross respect and love to carve the car's reading every two minutes about Mork over disasters. We wanted to be an alternative documents. Let's show you some of the good stuff. It's working. Let's share some of that stuff. Some of our top agents

John:   36:58
Let me Johnny, let me let me share. Let me share a storey of how a guy went from insomnia and petrified to sleeping cleanly in 24 hours. So the conversation wass my I can't handle it. I know that Come, Jeanne July, I'm going to get smashed and I said, Why June your life? He said. It's really simple. I'm going to have a bad April on May I control. That's going to fast forward in cash settlements in June and July. I've sat there and I don't know what to do. I haven't slept for three nights. So on one piece of paper, all we did is say, Let's forecast How far down do you think you're going to be in April and May? And he says, I'm confident we're going to be down 2/3. I think that will do 1/3 of the deals I said, Okay, so then I said, Work that out Fast forward to June and July. What can you do right now to help that gap get better? What can you do? He says Aiken. One of the suggestions was yours. He goes, the entire team drops. I think he said 30 current number, 30 40%. I said what else? He said I can actually I can actually go off and speak to a bank because the interest rates now record would blow on. Dyken say. I think I may need this money of this period of time, right and the banks were very surprising, very easy. They said no, there was no hiccups. And that problems, Why do you need there? No problems. Then he turned around and he says, to be honest with you, you know, my own personal spending that needs to be reassessed. And the weird thing is, people are actually spending less because they're actually not going out. So if you think about it, right, where do you go? You You go to your place of work If you're going to work. If you're not, you're pretty much going home. And once every week you're going to Cole's. So he worked out that if he actually did those three things that he could actually be okay. And he goes, I just feel a lot better because sometimes the problem is bigger in your head that in real life and humans beings have got a terrible thing of catastrophes ing. I got to tell you, I'm in that bracket. I re I remember early on when when I first got on well, I used Teo visualise funerals. I used to visualise that and you know, I don't know who it Wasit was someone in the hospital system, he says, Listen, just narrow your focus to a day he goes because humans a terrible at estimating the future. They have faulty thinking. He goes just narrow things to per day. And you know what? One good day followed by one good day, followed by one good day. You've got a decent week at the end of it. You know,

Troy:   40:03
you know the other thing time that, as you're saying that I think you gave that person so great council and just getting it out of your head into the real world, especially if you're on the other side of the conversation. Got a great strategic adviser like you is brilliant, but you would also go. I think once once business as usual returns, you get factor some of your commissions from exchange to settlement. And you might cost you two or 3% get aid earlier so some that cash flow could be brought forward. And you know there are there are things you can do. Go to the bank, increase your overdraft or get an overdraft factor in Sameer commissions. Once the market bounces back, cut your discretionary spending personally cut discretionary spending at a business level. You know, I asked another. Another mutual friend of ours told me that connected to the real estate industry has got to start 27. And he said to me he was going to have to put off six people and he said he thought about it, spoke with his wife. He went in. He said, Look, I've got to put off six people or there is an alternative. I've done the numbers. If everyone takes a 50% cut for the next two months, we could get by and everyone said yet will take 50% takeup. So that was another great community decision. But within that particular business, that really worked out well. And they said, Well, whether it was fear that they might have been one of the 60 knows, we're just community minded. They didn't want anyone to go, but they said we'll take the 50% Well, well, well typed the bill for next couple of months s. So I think we are incredibly resilient. A zoo, a group of individuals. If we don't panic and we seek the right council, there's s everything is figure out.

John:   41:42
Yes, I love that word, even though it doesn't exist. But it's a good word. Bet if there's anyone If there's anyone watching watching this right now, that is. Got that anxiety feeling. Don't forget even those measures that we talked about. When you add simple things like, I can pretty much tell you, a couple of big clients have said that they spoke to the bank. They freezed principal and interest payments. So if you are a business, they freeze that. That said, we're freezing it. You're not making those payments. Then you add $1500 job. Keep allowance to the necessary people. Hey, things are a no in year as catastrophic, which is what catastrophic thinking is as what they are. The secret thing is to do your thinking on paper, right? If you can do your thinking on paper because you've got this committee going into your head, that on the one hand he is Harry Dent saying Bryce is air going to drop by 50%. On the other hand, you've got you know, someone saying this is all going to be finding for weeks and what you want to do. And then I think that Rupert Murdoch, once I accept to about four meetings with Murdoch to was to do presentations and two was. I was sitting there with others doing presentations and I'll never forget. Rupert once said. I want you to Not because someone said Is that? Is that the favourable picture on DH? Rupert says, What I want you to give me is not better than it is not worse than it is, but what you think it is. And I think people could sometimes fall into two traps and a catastrophic thinkers. Then you've got a group of people that I think are there more than positive. They're delusional figures

Troy:   43:35
never see things better than they are, but also never see things worse than they are because both of them have bad outcomes, ones delusional. The other one actually sends you into this car mode where you can't do anything. So I think that's really, really, really interesting. So look, I think the overall message is it's uncomfortable and we will get through it. We'll get through it sooner than later, I reckon. In two months time, Australia anyway will be feeling relatively normal relative to how we are the moment we're in lock down. I mean, I think Morrison is, I said to you the other day, tell me. He's a genius, whether you voted for him or not. Right now, he's got this country and locked down without ever saying where I lock down because 60% of what lock down is about we kind of doing. But he's never had to say those words, So I think people are feeling now. We might have to, who knows touch when we might have to go into lock down tomorrow. But right now he's achieved something which is, you know, they've turned down the dial on new cases, so that's what we've been trying to get. He hasn't officially locked us down, but he's done a number of the measures in Stage two. I think we're at stage two or three and I'm not being critical of anyone that has gone and locked down other countries. I think you've got to do what you gotta do, but way are able to survive. Deals are still being done. Yes, you'll have to rein in your spending for the next couple of months. Unfortunately, some people may lose their jobs, but they'll get them back again. There are big what their reassert. My experience post most of these tragic events is, there is a surge of optimism. Post. People want to get back out, start living again. Whether that's buying a property, going toe, lunch and dinner at restaurants, going to seeing their friends. I want to get out and live again. And so I think a lot of what we lose in the next couple of months we're going to pick up in the next 6 to 12 months afterwards. So

John:   45:24
did you work? Did you do? I'm sure you did, but I'll confirm that. Did you work in real estate in 1987? 88 89?

Troy:   45:35
Yeah. I've been real estate since 82.

John:   45:37
Okay, So, John, I got into real estate in 87 88 I still remember my boss at the time said, Don't waste your time. Take it was if you if you recall John Price's doubled, they literally double. So just picture. Ah, house now in Newtown, being worth 15 went to $3 million right? I'm and my boss said All you do is given a key. I'll give you $50. That's a deposit. They'll go look at the property and they're going to come back and they're going to sign a thing called the preliminary agreement. Right. Do you remember the preliminary agreement? Okay, so, Troy, you don't remember the preliminary agreement? D'oh! You were pretty much going into high school. U 7 may be right. Well, maybe, maybe not. Maybe when you were in public. So what happened? John is so so. Things were booming. They'd come back on, they just buy a property. And then all of a sudden, it came to a standstill. And in 1989 interest rates were 17 18% us to remember sitting and open for inspection in Rose Lands for 17 18 weeks. Right on DH. No one came along, right? No one came along. There was. There's more buyers now during the covert locked down. Then there wants in 1989. Right? And there was no lock down. And I still remember a buyer showed up at Rogers Avenue in Rose Land. After 18 weeks. May 20 year old guys sitting out in the open, I thought hrh a the first buyers come along, car pulled up, slowly, opens up the window and said, you know where Rose Land Shopping Centre is right. So it was a wrong address. So what happened is, But here's something weird that happened subsequently. Over the next couple of years, the market listings when crazy people would sell people had to sell and property started to turn over. And one of my things that I wantto say to people watching this video or listening to it on iTunes or Spotify and John and Troy you're going to understand this is that if you were a real estate agent, Preda Covert 19 that had a strategy, which was you go to the door, open up the door casually say I have a quick look through and the market put the deal together. You're going to struggle because I actually do think it's going to need someone that can bring two people that may have resistance. Gonna transaction. You're going tohave. One person that's going toe have fear that prices might drop further more. You're gonna have another owner that's goingto have concerns that maybe now is not the best time to sell, and it's going to need people that have got the tonality were proper intent. Was school someone like Alex Jordan that can sit there and say this is what it means to you as a seller. This is what it means to us, a buyer, and there are going to be certain people. They're going to be able to do deals. Unfortunately, the product of some of the agents over the last five years, Some of them are going to struggle with those conversations because they basically weren't having the market was having a forum. Unless they re

Troy:   48:53
invent it, it's not too late to reinvent your right 100% on the This is not an order taking market. This is not a normal market. This is a professional negotiators market, and people like Wayne born who say this is the best market for him because this is what he was born to do business in his tough markets. So it's not too late, especially for people like that are on your real estate. Juma made. A lot of people have gone to your courses, and I listen to it, and that means when they're not doing the work in Flynn Times, the practise that they get a bit inspired in the moment they pick up the I think you have to redesign yourself now a lot of time at home. Redesign your listing presentation one of the five concerns or issues a buyer might have right now. And what is your response to those? Let's maybe we can even do that next time next week when we do the session, you know what one of the 3 to 5 issues that ABI could have in the 3 to 5 issues they're selling. And what's your professional response? It is Matt Stein, Way said. Alex said. It's morning. I can't come up with a magical sentence to cure everyone's issues, concerns and fears. They're going to be some times where I just say to someone, Tom, I think you should hang on to the home for the next few years. Really, I think it's the best situation. You can do it. The price you're looking forward to not force going to be forthcoming. You're not desperate. Why don't we just mothball it for a year or two? Sometimes that so I'm not saying that you can come up with an approach that's going to resolve every situation, but as you did with that person, you were talking to that, that we had the sleepless nights. There isn't a problem. But if you work through it and understand where they're at and that's that's the beginning of dealing with every objection is not just thinking what was. What was that? What's account of this? Objection. What I say it's actually connecting with the person and understanding why they'd be feeling that way and something. I totally understand. Fact. I was watching Chris Voss the other day. Try and tell me your memory spoken Eric brilliant. And he was saying, He called it. I'm going to Cy Strategic Empathy, I think he said that was one of his key tips around negotiation with strategic empathy is really getting so deep into their concern there. Issue their position, whether you're negotiating or whether you're dealing with concern that you absolutely feel where they're at, and that is the starting point for getting through it. So rather than just saying well by, well, you know, you're going for 10 years, I don't worry about it sort of thing, you know. And by the way, owning up to 10 years is one of the solutions is you know you are going for 10 years, and if you think you're ever going to pick the top of the bottom. You're crazy, but you do need to empathise first. T Genya will be able to say, Tom, I totally understand why you'd be concerned. In fact, most of clients that bought property from any in the last two weeks have had exactly the same concerns as you. Let me tell you why they move forward, why they actually got to a point with our comfortable moving forward. So it starts with empathy and then because people want to feel that you feel what they're feeling and then you can move on with the solution or not. And as Matt Stone Way said, if someone is not ready to buy and they talk to them and I tell them I'd be on the market and they're still not ready to buy their problem, we'll be in touch in a month or two. I'm going to put you on my list of buyers, and we're going to do that. The other thing. Just Smith from Canberra office Tom that you know very well she's a young lady and a young agent, she said. For every vendor in her pipeline she's got, she puts him into a 30 60 or 90 day planned for the people it must sell today. They have no choice. They're desperate or they're just fully committed. That board another property. She got a 30 day plan. How to sell a properly. People that aren't must sell desperate, but they kind of have to shift it sooner than later. They should have a 60. The 90 day plan is kind of post code for people. It is saying, Hey, why don't you call me when you're ready? And she'll say, Let's get the photos down The videos, whatever. If I have a red hot Byron, a super duper pre coded price, I'll call you otherwise I like it now it's going and then we can launch because she said, It's been like Christmas, she said. And she wasn't being insensitive or rude about this. But she said, You know, when you got Christmas, you've gotta get all this business done because it's going to be a period of you're not locked down, which is no one works for two or three weeks. And so, she said, Right now I'm working like that. I'm working on the assumption that there probably will be a lock down. This was a week ago, but she said So I'm getting all the deals down. I'm getting all the properties listed, all the photos taken, getting all that done. So then, if we're going to lock down a tender Christmas off the back of that, I can relaunch a ll these with the bank. And I think if you don't have your listings right, your property is ready to go. The best time to be selling, probably. It's gotta be immediately Post Cove Inn when they ring a bell on says Okay, Australia, be careful. Don't be silly, but you can now get backto work. You can now go have dinner in a restaurant you can now jogging a group of 10 people. I think there's going to be this surge of optimism and energy. So you need to be prospecting, and you need to have a plan for every client. But it's not gonna be the same plan that 30 day clients have a different plan to a 90 day client.

John:   53:48
Troy. Before we finish off, I want to ask you, you've sat through three weeks of star agents. You're also you're the main connector in terms of education at the grass there. And you're also been participating in the online auctions, which I have to tell you I'm not so convinced on. I'm sort of had an open mind on the whole process. I actually think Go Post Co Vered and I had a few auctioneers that upset with me. I mean, I always say the truth like even if it doesn't suit me and I do work in option Well, then I just thought to myself, Hey, they say the small purpose. But I do think Post covert 19 I think Troy and Spot Kennedy Green and Edward Reilly. I'm going to be sitting there in front of people doing an onsite auction, putting on a great event for the local community and using their skill to actually hopefully get five or 10% more because of something that they could do. I think that's going to happen. I think there's going to be this added layer off people that one of bid and can't be there. Maybe they're going to use technology now instead of using a phone. But I do see the day of the open houses and options actually being set in stone in the way real estate agents do. Troy, do you want to add any on that? Anything on that unknown?

:   55:11
No, I think you know very best right now. And get him into routines and habits that will get them through this next tranche of change. Online auctions Dough. I particularly love being in front of the camera and not engaging with an audience. No, but do I know that that does serve our clients in the best current environment? Yes, s o. I look forward to the day that I could be standing in front of 2030 40 people, even five people in a room or in the backyard of a property, because I just think that that's where I get most excited. But I also know that there are people right now that need to do transactions and the best platforms out there are the online auction. So we still have to serve our clients. And I think that's probably one of my final thoughts. If I can start to go there because we've been going for a little while now is the routines of the habits we set up. Now we're going to set us free, But it is all about servicing our clients and our customers to make sure that their interests and what they're going through, they don't feel isolated or alone. We are all in this together, and I think the more that we can give right now will play benefit into the future. Givers in quality of information give us in quality of case studies, give us him servicing and having empathy with every client we deal with. I really think that's going to set the agents up for success. And I think everyone that's listening to this, whether it be on iTunes or Spotify or on your Facebook page, is a live stream. That would be one thing that I would say Don't unwavering from the work that you've been doing. It might feel a Ziff this week's heart of the most, but the work you've been doing and the key you've been giving your clients has really set you up for a successful tail end of 2020 when we can look back and and think over. It was a time of change, and we really did make some changes for

John:   57:00
the better. Well, said Troy. I mean, that's sort of conversation. You should be sitting on the right side of Scott Morrison doing a press conference that was extraordinary next to the next of the hunt. You know, the chief medical officer, which I must say I which I must say that has actually now officially gone. And this is not being sensationalist. You know who I'm talking about? Both. I forgot what his first name. I think it's Brendan Hunt. He could be. I'm not quite sure who sits there. He's actually said, we now have definitely flattered the curved in Australia because they've had enough data over a number of days which says that it's going down and you know, that doesn't mean that you're not gonna have, like, its share markets along the Southern Something happens there. But what you're seeing is the at a higher level occurred. That's going down. And that's very positive, because two weeks ago certain people thought that this was going to be like that movie where that I would be a few people left on the planet alive. And that's not the case.

Troy:   58:05
Yeah, yeah, exactly, exactly right. But I think I'm part of the scare tactics in there and I say that rudely at all. It's again. The managing expectations is that if they hadn't given people the worst case scenario, people wouldn't have made a good quality decisions that most almost all are making today. So there's something to be said about. You got to say to People hate if you if you crazy out there, this could get very, very ugly. If you're sensible and discipline for a short period of time, we will bring this under control. So, yeah, you're lost all of grand and shout out to all the health care workers. You know, I've got to tell you what they're doing every day, going into battle in the hospital's full of covert germs and into scenarios. And we've seen Italy. I think they had, like 55 doctors die from Corona in the Italian medical system through catching it through their patients. Predominantly anyone that's out there that might watch this, we could be in health care who has family, friend, siblings, spouses in a please thank them on behalf of everyone because they are the true heroes. When you look back at the end of your life and you think about heroes and life you come across. It's going to be these vice, because every single day for in many cases, maybe not so much the doctors but for the nurses and health care workers for not that big a salary. These guys are going out there working long hours on their feet the whole time, and it's just

John:   59:33
yeah, I mean, let's call a spade a spade. Most of these metal, even even a Nkala gist that works ATT at our eyes on a couple of 100,000 bucks a year, right? 200 grand a year, right? These are people that are sitting there putting on this people, the uniform, concerned about having to have it on. Some of them have a shield on some, they struggle with the whole thing for a couple of 100 grand a year. And in real estate, we've got people that are 25 years of age that are sort of earning that money with easily in six months time, right? So we've got to be growth for a big shout out also John and Troy to the property managers because I actually think they have been the doctors or nurses off the real estate in the street in the last couple of weeks. I had one client of mine last night tell me in the last four days they had 700 tenants. They gotta rent roll off 3000. That's 700 tenants that rang up and saying, What can you do for me? And on that point before we finish off, I feel is that I feel strongly about this because there's a genuine group of tenants that have been impacted. They've lost their job as at any time fitness trainer. They've lost their job working as a cafe barista, right? And what happens is they have been impacted. And there was another group of talents who haven't been impacted, who have been a bit opportunistic here on what they've done is they've got on the front foot and saying, Hey, how can I get something out of this situation? Because you know, when Scott Morrison did make that press conference, he didn't go into the detail and he actually said, I want to know that, you know, there are six months you can get evicted and a lot of people just sort of jumped to conclusions. Property managers by that to learn the art of managing empathy and telling people at the same time. Hey, we're still waiting to see what the government's going to say about this because there is packages coming in the next day or two in regards to that. And you've just reminded me I might get Scott Dunder, the king of the crucial conversation. I think I meant to get Scott Got it on from Byron Bay, Scott, Dad and John and Troy Scott. Darden sends me a text message every day with photos off Byron by saying it. But the way he picks the best ones, right? Just sends a message. Any stairs. How's live? How are things going there for you?

Troy:   1:1:56
It is a great guy, a great last year

John:   1:2:00
or I John and Troy, thank you so much. Hey, let's wait Spotify. It's going to hit iTunes. It's going to hit every possible platform. Mary goes. He's doing for my cousin. Glad wrap their Johnson job, Johns John's pump and we're gonna and we might even live streaming again. And you know what I think we're going to do in the next few

:   1:2:24
weeks we're going to do? We're going to get a guy will girl in real estate. We're going to get them. Come on, the way we're going to sit there and we're gonna talk through an issue because you wanted to do that a few weeks ago. You guys. Thanks. Thanks a lot.