Million Dollar Agent
Million Dollar Agent
You’re Dating Interest Rates, But Marrying A House
In this episode, we unpack some of the most crucial themes shaping the real estate landscape right now. We talk about the importance of professionalism on social media and why the way you show up online directly influences how the market sees you. Reputation matters — and in this game, perception is reality.
We also cut through the noise around misinformation in real estate, particularly when it comes to over-quoting and misleading price guidance. Our message is simple: clarity and honesty win. Agents who have the skill and confidence to deliver the truth — even when it’s uncomfortable — build stronger trust, deeper relationships and long-term success.
We break down the current market conditions, the power of the November selling season, and how to finish the year with momentum. Despite the headlines and volatility, real estate continues to be one of the best industries for those who stay focused, sharpen their skills and remain committed to serving clients at the highest level.
John Panhouse, John McGrath, Troy Malcolm, the band is back together on another beautiful Monday podcast. You'll be listening to this on Tuesday. We turn it around in a day. Troy, good to see you. John, good to see you. And also, a big uh big big shout out, Troy Z. Well done. You're now uh the franchisee of three McGrath officers. This has got Konstathopolis all over.
Troy Malcolm:Um thank you, thank you. Which officers, Troy? Um, Manley, Forestville, and St. Ives.
John McGrath:He's handpicked them.
Troy Malcolm:Hand picked them. Um, obviously, um, as you know, my family's been uh in and around the northern beaches, in particular Manley and the BDA for the best part of 110 years or so. So to come back has got a real nostalgic feeling. It's pretty amazing. Um, so feet are under the desk now, and it's a huge amount of work. We've got some great team members and partners in the business, and I'm just super excited about uh what the journey looks like.
John McGrath:And they bring young uh Mr. James Baker and Adrian Venturi and Jill. Uh we've got a whole heap of great franchisees up there. Before we start, Tommy, and I'm not going to go into the in detail, but you you did flick me, uh, which I hadn't seen at that moment in time, uh, a social media post. It was about an agent who'd made a terrible, a terrible comment about um, you know, about a minority group. And and I've seen this starting to crop up a bit. You know, agents, they get a bit of success in real estate, and all of a sudden they all seem to be becoming world experts on, you know, American politics and uh Middle Eastern issues and so forth. And I just thought this particular person who I might mention, but I I don't know whether they're just totally tone-deaf or whatever, but you know, every member of the community is important. And you might you're well and truly um allowed to have your own perspectives on things. And if you want to have a private conversation around a dinner table with some friends, that's fine. But please, people, just realize that, you know, social media is actually accessible by everyone on the planet, and it'll be picked up as this one was, and and uh I'm sure this person will be dealt with fairly fairly strictly, and from what I've heard, quite a successful agent, by the way, but not a successful commentator on social media. And I just think, guys, you know, like you you're all very near and dear to our hearts. Most people that have been listening have been listening to us for five or ten years and have been a part of the the time panel stume and so forth. Um, just just be very careful, you know, stay in your swim lane, make great commentary about what's happening in the real estate market or your local community. Don't go out there as some some so-called experts are now doing and and try and be God's gift to everything. It's just it's unnecessary.
Tom Panos:Johnny, I've got to say to you, like people under, and this is not me in any way trying to say, do what I do, because I'm not an agent. But John, today I received another three. I get every week at least five people that say, This is what I'm thinking of doing. Um, Tom, really like your advice because you seem to tell the truth, right? I get these all the time. The first thing I say is, I'm not an agent. I'm letting you know. They say, Yeah, I know, but what do you think, right? And I'm convinced that if you take an angle where you're not showing how many properties you're selling or how quickly you're selling them, right? Because they don't want that. They're, you know, or anything to do talking about how successful you are, right? The whole thing they all come under one umbrella, and that is not being connected to the community that we serve, right? But being connected to our own heads, you know?
John McGrath:Yeah, that's that's right. And yeah, and every and everybody counts. And if you are, if you're a political commentator by by trade, well, you should be commentating on political things. And Tom, you know, I maybe some people see you, and you're you're in some ways, you know, your opinion is well known and in some ways quite outspoken. And I think it's it's it's enlightening and interesting, but you're not an agent focusing on a community. You're out there and you can speak, and you know, your your personal brand is very much around speaking your mind, and it's made you very successful. But an agent out there serving a community um that might comment on on the Middle Eastern issue, which by the way, there isn't you can't win in that that debate, commentary, or whatever, because it's very split and it's very divided and it's it's it's very uh volatile. You're gonna piss off a lot of people, no matter whether you're, you know, pro or anti, you know, one one group or regime or country or religion. It's just tone-deaf guys. And but I think agents, as we've said it before, they get a modicum of success. They you know seven figures, well done, million dollar good on you. Uh two million dollars, uh, you know, okay, you must be bloody good at what you do. But it please don't be stupid to think, and we've seen some you know, real estate coaches seem to be diving into this territory too, that all of a sudden that you know you you're gonna prove how smart you are by becoming a political commentator and an expert on US politics or Middle Eastern wars. Just just silly the way. And you know, we've seen some agents falling by the wayside over the last 12 months for a whole number of issues. Um, and that's just seems to be the latest one, that particular. And I don't know the person, I'm sure he's probably a good fella, and and I hear he's a good agent, but man, tone deaf, just don't do it. Just stick to your swim lane.
Tom Panos:Yeah, I think I think everyone needs to go and replay the Reese Witherspoon video. Uh Barek, she actually said one profound line before you press the post button, pause, think, and then ask yourself, how will that make people feel? Right? Just pause, right? So uh I think that a lot of the the other one, Tommy.
John McGrath:I don't know whether you've got kind of heard this, but I've heard sort of questions coming from the public. And I can understand where they're coming from, you know, and it's kind of sounds like when you hear them, why does your bloody industry lie so much? Well, why is it that real estate agents are all liars?
Tom Panos:Well Well, then John, they're not they're not all I mean they do lie, but they're not all liars.
John McGrath:Well, no, and I was about to say, first comment back is is well, it's not true they're all, but sadly too many are. And sadly, I'd even go as far as say the majority are somewhere between telling half-truths or conceal some of the truth, or or some of them are liars. And and I think there's a really simple answer is that listings are tight, it's a competitive industry, people don't want to miss a listing. The and and what do they lie most about? Sadly, it's about price to a vendor and sometimes then price to a buyer. So as the stakes get higher, and we're starting to hear about real estate agents ironically becoming some of the highest paid people on the planet, literally, um, and and the market's tight, and everyone knows that you know, if you get the listing, you'll likely sell it. So people seem to be adopting the approach of, well, look, if you tell them the truth, you're not gonna get it. And if you tell them buyers the truth, they're not gonna come to the auction. And and I refute both those principles. Um you if if you have to tell a lie to get a piece of business, you shouldn't want that piece of business, or you shouldn't chase that piece of business. Um, but as we've often said here, and I know Tom, you talk to your members about this as well. Just because you want to have an honest conversation backed up with real facts around price doesn't mean you have to take away someone's hope. So I, you know, and you know how do we deal with it? As Troy well knows, you know, we try and find out as early as possible what someone's looking for, and we honor and acknowledge that. And it's great that you like Tom to get six million for your home. It's a beautiful home and it deserves a great outcome. Um, my job is to get you the highest possible price. Let's look at the comparables. The last three in the street have gone from five to five point four. So that's a benchmark that a lot of buyers will will point to when they're trying to re review value. So it's my job to create a lot of competition and get people emotionally connected in a competitive spirit, and that's where we and you just have that conversation with people and it resonates. And does that mean you're ever you're never going to lose one? No, of course you will, but you're gonna lose deals for a whole range. Sometimes you lose a deal because they want you to do it for one percent and pay for marketing, and you can't convince them otherwise. Other times it'll be because you know they want to hear a high, high price that can't be substantiated. Um, there's a whole range of reasons, and you don't need to get every piece of business, nor should you actually want to, because some business is not great business. But just you know, as the as the answer to that question, I think just have honest conversations with with owners, have a strategy, acknowledge if they are looking for a bit more than the market has traditionally paid for properties like theirs, because guess what? That's almost every vendor you're going to meet until you retire out of the industry is going to want that, you know, that super 10, 15% above market, perhaps. And and sometimes you get it and and sometimes you don't.
Tom Panos:I'd I'd never thought about it until then, John, when you actually said, you know, what the lie is. I actually think that 80% of the lie, if they are lying, is on price to the buyer and price to the seller. That's that's where it seems to be the main thing, right? So so let's let's just just do a deep analysis and deep dive. Why why do they lie to the vendor? They lie to the vendor because they don't feel that they've got the ability to articulate what you just actually said there, which is somehow to give the benefit of the doubt that there is a possibility that if it's out there, I'm gonna get it. But let's talk more about the process, they feel a lot more comfortable being able to say, we'll get that number. And to the buyer, they feel like they don't have the ability to get a buyer interested in a property unless they, you know, clickbait them or price bait them, right? So if you can turn around and say if you become best in the world at handling the conversation about price to a vendor and buyer, you're getting rid of most of your problems. That's that's a skills issue. I mean, don't get me wrong, John. I'm sure, I'm sure there's a small group of people that are just there's a small group of people, and it's easy to get into real estate that are just bad people. But we're talking about the general ones, is I think it's a skills issue.
John McGrath:Yeah, and it's it's this people feeling they have to put a number down that's uh A is they have to put a number down, and B is it has to be something that's gonna excite a vendor so they'll sign up the listing. I always say to people, do you know, Tom Monsula, there's one thing I can't guarantee today, that's price. Um let me take you on a journey on the process, let me show you some recent sales we've made, let me show you some others that have been similar homes to yours that have been selling in Haverfield, that are probably gonna be the sort of properties that buyers refer to when they're trying to predict where your house may land. But the one thing I do know is I don't know what it's worth, and neither do you guys. Um let's have a look at the recent sales and you can tell me how do you compare them. But someone that feels like I've got to say six because I heard they're looking for six and I know they'll want to get six, and if I don't say six, even though bracket, I really think it's worth five and a bit, um, and that's that's you know, that's why passing rates have gone up. That's why the industry's got a bad reputation, because people are not having these and I'm gonna say uncomfortable conversations, but to be frank, once you're comfortable, once you're good at doing them, they're no longer uncomfortable. You just have that I have that conversation in an in an almost identical manner to the one that I've just reflected then, you know, on a on a daily basis with people. And people get it. Yeah, yeah, I know, I know. But you know, do you reckon we might be able to get six? Well, let's see what what we can do. Let's let's bound together and let's put together an incredible plan and a strong marketing, and I do know that we'll get the highest possible outcome for you, irrespective of what that might be. And I don't think I've missed many listings in a long, long time based on value, because I don't bullshit, but I also don't ridicule or take anyone's you know hope of getting a great price away. And sometimes we do deliver that and more. So I I just think you've got to get but as someone said the other day, you know, the rewards in this industry are extraordinary. Like seriously, the best barrister in the country probably earns a million bucks. And I could I could name, you know, a hundred off the top of our joint heads, who are 23 being two years in the industry and are earning that. So I mean it is quite an extraordinary return on investment. So what I'm saying, or the reason I'm saying that is go to the effort of practicing, you know, get a coach, join a coaching program, you know, go to events, listen to tapes, listen to podcasts, and go to the effort. And we talked the other day, Troy, you weren't at that meeting, it was it was kind of the first company sales one where I took it over again. But we were just talking about, you know, like Djokovic, he practices every day, right? Best in the world, when he was number one in the world, I'm not sure where he is now, but he practiced, if he wasn't playing a tournament, he'd be practicing six hours a day. And here is a guy who is extraordinarily talented, and yet if he's not in front of the vendor or in his instance, not opposite a player in a in a proper competitive match, he's on the practice court hitting, hitting forehands, hitting backhands, hitting volleys, practice serving, and that's the best in the world. So why wouldn't a real estate agent that has the ability to earn seven figures or multiple seven figures why wouldn't you put the effort into perfecting and mastering that conversation and work out every awkward question you could be asked? Go with a peer in your office or your sales manager or whoever, with your kids, with your spouse, just find someone who can role-play with you and ask you the tough questions and and just learn to master that. Because once you've done it, and by the way, it'll take all of two weeks for you to if you're practicing every day and you've got the right material or the right coach to help you, it'll take all of two weeks to get it. And man, that's just gonna unlock it and it takes away so much stress out of this industry because the pass in rate is big because people are telling vendors the wrong price. That's the reason.
Tom Panos:Yeah, I think Thomas McGlynn I had on uh on a Zoom two weeks ago or three weeks ago, and he actually said one of the things that clearance rate doesn't take into account is operator error. So you could actually have a a clearance rate that is around, you know, a city, but it doesn't take into account that some agents know how to actually run the process from A to Z properly, and some don't. And that that is affected in the clearance rate. Um, whilst we're talking about that, I just want to ask. I mean, we hear the media. In fact, I did a thing on seven this morning where the whole focus was the lower price point, it's pretty red hot. But the reality is there's a fair bit of stock on the market. Troy, now that you're an operator out there, you'll be seeing it firsthand. And whilst there are some price points that are far more attractive than others, real estate agents uh have to be deal makers in this marketplace. It's not as, you know, like this excess stock means that prices aren't running crazily as what people think. I'd love to get your views, Troy.
Troy Malcolm:Yeah, Tom and John, every conversation is crucial right now. Um, really understanding the buyer's needs and really digging deep on why a property suits their requirements and why it doesn't, and the reasons for justifying their price that they're coming forward with is incredibly important. The better you can arm yourself with that information, the better quality conversations you're having with your clients that are sellers. Um, you can't just think I'm gonna give out a few contracts and turn up to auction day, and there's gonna be bidders that are proactively bidding right from the word of, you know, opening bidder offer. You must do the work throughout the course of the campaign to really understand whether it's a deal or whether it's a not, and then go back and reset those expectations. John mentioned earlier about the pricing conversation and handling that as an objection. That actually flows through during the campaign. And two things that JM did in that uh last little bit was around tonality and language. And Tom, I think that both of those are incredibly important right now in the market because the language you use with both sides, purchaser and also vendor, but also the tonality you deliver the message can make or break a campaign.
Tom Panos:Let's talk about buyers. Well, Central. I had Constanthopolis on last week and I've I played, I can't believe it. I don't know how it came into my head on Saturday as I was leaving one of the properties that hadn't been come together. The the buyer said to me, Oh, listen, he goes, I'm gonna, I'm gonna, I'm gonna leave it because all of a sudden there's a big question mark on what's gonna happen with interest rates. Um, because no longer are they saying rates are coming down. And Constathoppos had raised a thing when I had him on the real estate gym the uh last week with I had him and David Walker on. They like hanging out together, so I had them both on together. Um comment around and said, you know, like, would you not buy a house because rates were gonna go up in 2037? Right? So the bottom line is the the concept there is you're gonna have a mortgage that's gonna be a long-term thing. It's not a temporary thing. So you don't make a permanent decision on a temporary thing. I mean, reality, I know it sounds a little bit cliched, but you're dating interest rates, but you're marrying a house, and rates are gonna be going up and down over the term of your loan. Um, so sometimes I think, you know, buyers need to be spoken to because sometimes they also, whether you call it faulty thinking, but it's it's not thinking that I think serves and leads them well. Can I ask Troy, John, what is the kind of tone, language, the things that you think we've got to be talking to help buyers who are hesitant in moving forward at the moment?
John McGrath:Um I think always be focused on what's in the best interest of the customer and or the client, client being the vendor, customer being the buyer. If someone is is genuinely not ready um to transact, just work with them until they are. You know, people often say to me, how do I get a buyer to make an offer and they're they're nervous or hesitant? I said, Well, find out why they're nervous and hesitant, and either you can give them comfort or you can't. But but we're not about putting square pegs into round holes. This is such an incredibly important decision in one's life and the biggest financial transaction for everyone on the planet. You know, I'm not about to push anyone in. Having said that, I am about trying to help someone come to a decision if they've found the home they love and they're in a position and ready to buy. And that's the thing. Even someone that is ready to buy, they do love the home, they're probably gonna have a little bit of hesitation because of the magnitude of the decision. So I think, you know, firstly you know, dig into their their nervousness if they have it or their hesitation, listen to it, acknowledge it, and then work out whether or not that you know you you you should be moving them into this home or not. And and that's my view that if you deal with integrity, and I just do it, you know, as Troy said before, tonality is important, it's not pushing, it's not hustling, it's not urging, it's you know, Tom to know, you know, where your hesitation's coming from, because we know a lot of buyers are buying at the moment. We know some people are on the fence. What's what's of concern to you at the moment? And he might just say, Oh, well, interest rates, you know, they might not go up tomorrow. And I said, Well, the experts are saying you're right, they probably won't. They may not go up until next May next year. That's you know what I've heard from a few different people is experts who are saying May could be. But let's just talk through that and then you unpack it, and we know that as rates come down, prices generally have a surge up, and so therefore, it would make sense if they're in a position to buy and they found a home they love to secure it before the next rate reduction, and they've got a window. If you take Christmas out, they've got a window of about two months to find something. So um I think it's just a matter of talking logically and calmly with people and not trying to push someone into a decision. And ironically, Troy, as you know, you know, one of my favorite negotiation sayings is you know, care but not that much, uh which which shouldn't be seen as Machiavellian or not genuinely caring. It's just the more you push someone, the less likely they are to go in a direction that you want them to go in. So just say if this is not right timing for you, Troy, or the right home. If it's not the right home, let's keep looking. If you're not sure if it's the right timing, go home, sleep on it, think about it, talk to your advisors, and then come back to me because if this is not the right time for you, you just let me know when is. And taking that pressure off often attracts someone to want to deal with you because you're not being an urger or a hustler, I think.
Tom Panos:You know, you know what I'm think uh Troy, John, and but I've never, I'm thinking about it. Have I ever had I I'm trying to remember, have I ever had a buyer that's come to me in all these years, and look, obviously the last few decades it's been more as an auctioneer than anything else with consumers. I've never had a I've never had a buyer say to me, I've regretted. I regret uh you you sold me a house and I I regretted it. I I you know hasn't come up, right? Hasn't come up. I was just thinking about that before. But I also do think I think most I I get the the I get the hesitancy because I think the majority of people left to their own devices are not proactive. It's safer not to be proactive. And I think we've got to take into account, as salespeople, we've got to have a look at the reasons as to what is stopping that person being proactive, as you said, you know, peel the onion and look at it. Um often I find that them just having certainty that they're buying a good property at a fair price is enough. I don't think I think the average person doesn't want to, you know, go off and steal a property. And I think it's simple. One agent I know, what he does is he plays a game called Guess the Price is Right. He goes, whenever he gets into a negotiation with uh with a buyer, he says, listen, it's gonna help us all if we just get good context. Hop in the car, let's do a quick five-minute spin. I'm just gonna do a quick drive-by on four properties that have sold in the last week so you can get a real good understanding at what is in the moment. So what do you reckon that's sold for? They drive by, oh, that's sold for that. No, sold a little bit more. So they do a bit of a you know, five-minute education piece, and then they can actually speak with evidence, a bit like a barrister. Here's the data, here's the facts.
John McGrath:Yeah. And you're right, Tom. You know, I I can't think of anyone who I looked, I there probably has been some in their long career that's kind of you've not regretted buying it, but changed their mind afterwards. Or, you know, sometimes people go through very, very fast marital or or relationship split-ups. But I I I think, you know, out of the thousands of transactions that I've been involved with, you count, you couldn't even count on one hand. There might be one or two where people have said, oh, maybe I would have been better off not doing that. People, people when they move forward and make a decision are normally very happy as long as they're not bustled in and as long as they have the information available to make the right decision. Which is why, back to the original comment, we have to be transparent. We have to deal with integrity, we have to give people everything they need, both buyers and sellers, to make the right decision for them at where they are in their life and their business cycle. Um we're talking about uh Troy uh Glenn Mills, you know, David Mills' uncle. And uh, you know, uh the number of times that I've heard the story of Glenn trying to talk a seller out of selling a property, they've called him in to list their property, and it's a great property, and well, you know, they're under some duress or whatever, and he just says, let's find a way, let's just sit down and find a way where you don't have to sell this. And if we can do that, I'd much rather you stay here because I know you love it. And and often he does help them find out a way, it could be some alternate funding or selling an another property. And yeah, that's why the guy's a legend, and he's been the number.
Tom Panos:That's got to be the ultimate flex in real estate is that you actually are putting all their needs way ahead of yours and your real estate company's needs. That is the ultimate flex in real estate. And I'm and I'm convinced, I'm convinced the karmic loop that actually happens um pays off. But then again, a lot of people that their nature's like that, they want to they they actually get a really big kick out of doing that for people, regardless of the karmic loop. They just think it's the right thing to do.
John McGrath:Yeah, yeah, totally. And and that's the only place, to be honest, to live, is that as Ray Dalio calls it, radical integrity and radical transparency. Just go hard on the truth. Um and I think the market's fine, to be honest. You know, Tom, you you you and Troy and I have had the luxury of being exposed to markets all around the world through our network and our friends in in Europe and um UK, which is part of Europe, but um Middle East and America and the number of markets that it takes two years, at least a year, often two, to sell a property. Um and and if they get two buyers through a four-hour open for inspection on a Saturday there celebrating that night, you know, this is still an extraordinary market. Sure, it may not quite have the sting in it that it had twelve months ago. That doesn't mean it's not a great market. It just means it doesn't quite have the sting. I think twelve months ago, to be frank, was order taking.
Troy Malcolm:Yeah.
John McGrath:It was like just turn up, open the door, turn up at the auction, and you probably get a pretty damn good result.
Tom Panos:So, John, I did th I did, I literally conducted 14 auctions on Saturday, 13 sold. They weren't crazy prices. They were with one or two buyers. There was a few that had four or five, but the majority was one or two buyers. Yep. And these people were on the market for four to five weeks. That is a great real estate market. People are putting their properties on the market for four to five weeks, they're getting them sold. Yes, they're getting them sold at around reserve, maybe under reserve, maybe just over reserve. And that is normal real estate. And one final thing before we leave, we should touch on this. There's a lot of nine-month agents out there, right? And a big the what the reason this came up is someone said to me, We've got Melbourne Cup tomorrow, it's all come on us. Then we've got our Christmas celebrations. He goes, So uh what a year. And I said to the guy, he was a Melbourne guy, um, he wasn't a McGrath guy. He was actually we worked for an independent. I said, Listen, you've got to be careful because you've just told me you'd you've got most of January off. And I said, if you think about it, you could easily have November, December, and then pretty much say, we're coming back after Australia Day. I said, when I do that, that's a nine-month year, and I haven't even taken into account Easter and school holidays. I said, November's actually an incredibly important month in real estate. Hugely.
John McGrath:Yeah, no, it's it's very true. Yeah, some I think the the then the Melbourne Cup through to Christmas things, uh, you know, maybe a little bit more of a Victorian thing from what I hear, because I know certainly in in um in uh Queensland and uh and uh New South Wales that most of our agents are going through to at very least mid-December. Um Victoria, hey, uh this is the capital of the world when it comes to auctions and great real estate. I think the smart agents are not clocking off next week. Um they're clocking off middle of December, having a well-earned break and coming back and hitting it hard middle of January when there's plenty of people who want to want to sell them. We've seen through Con you mentioned last week, you had on last week, um, and Super Saturday. I mean, there's plenty of business to be done in the month of January. And I'm not saying everyone should work that. Some people have got you know lots of kids and or kids and they they want to take the month off well done, you know, and well deserved rest. But don't think there's no business to be done. You know, plan your timing. Uh if you're if you're a poor planner of holidays in real estate, it's very expensive. So plan your timing and take your time off, turn your phone off, have an amazing holiday. But when you're back, go hard because there's going to be plenty of business. And as I think we've all been alluding to and whispering, you know, next next 2026 seems to have all the hallmarks of of you know having quite a lot of energy attached to the year. So I think uh you want to be absolutely starting the year early and strong.
Tom Panos:Well said. Well, on that point, it is a scorcher of a day in Sydney. Troy's lucky he's got his surfboard manly there. In the suit there. So uh John, Troy, we'll talk to you for a week. We're gonna make an effort to see you guys right towards the last one or two weeks of Christmas. We'll do we'll do our bit here. Um, and um, yeah, see you next week.
John McGrath:Thanks, Tom. Bye everyone.