The Psychology of Real Estate: How Agents Use Anchoring and Scarcity to Influence Buyers
Release Date: 11/07/2024
Navigating the Melbourne Property Market: Insights with Emily Wallace
Talk Property To Me Podcast
In this episode of "Talk Property," hosts Brad East and Aaron Downie welcome Emily Wallace, a seasoned buyers' agent based in Melbourne, to discuss the dynamic property market in the city. With a focus on the current trends, challenges, and opportunities, Emily shares her insights on the Melbourne real estate landscape, particularly for first-time home buyers and investors. Key Highlights: Introduction to Emily Wallace: Emily introduces herself as the director of a buyers' agency in Melbourne, where she assists first-time buyers and families in navigating the property market. She emphasizes...
info_outline
Interest Rate Predictions: Will We See a Cut This February?
Talk Property To Me Podcast
Welcome back to another insightful episode of Talk Property To Me! I'm your host, Brad East, alongside my co-host, Aaron Downie. In this episode, we dive deep into the current economic landscape in Australia, focusing on the latest trends in inflation and interest rate predictions. We kick off the discussion by examining the recent decline in Australia's inflation rate, which has dropped to 2.5% in the December quarter from 2.8% in the previous quarter. We break down the components of inflation, distinguishing between goods inflation (currently at 0.8%) and services inflation (still high at...
info_outline
7 Australian Property Market Trends You Can't Ignore In 2025
Talk Property To Me Podcast
Welcome back to another episode of Talk Property To Me! I'm your host, Brad East, alongside my co-host, Aaron Downie. In today's episode, we dive into seven significant trends reshaping the property market as we look ahead to 2025. We kick off the discussion by highlighting the rise of millennials as the largest adult cohort in Australia. This demographic shift is crucial as millennials have different preferences compared to previous generations, particularly when it comes to property. They are leaning towards smaller homes closer to urban centers, which ties into our fourth trend: shrinking...
info_outline
2024 Property Market Wrap-Up: Insights and Trends
Talk Property To Me Podcast
Welcome back to another episode of Talk Property to Me! I'm your host, Aaron Downie, and alongside me is my co-host, Brad East. In this episode, we dive into a comprehensive wrap-up of the property market for 2024, discussing the performance of major capital cities and regional centres across Australia over the past year. We kick things off by addressing the financial landscape, noting that the cash rate has remained unchanged at 4.3% since November 2023. This stability has led to a rather uneventful year in terms of interest rates, yet we highlight some remarkable growth in property values,...
info_outline
The Five Worst Property Types to Buy in Australia Right Now
Talk Property To Me Podcast
Welcome back to another episode of Talk Property To Me! I'm your host, Brad East, alongside my co-host, Aaron Downie. In today's episode, we dive into a crucial topic for anyone looking to invest in real estate: the five worst properties you can buy in Australia right now. We kick off the discussion by highlighting the pitfalls of high-density apartments, particularly in inner-city areas like Brisbane and Melbourne. With an oversupply of units, high strata fees, and low rental yields, we emphasize the importance of opting for boutique properties that cater to a broader audience. Next, we...
info_outline
What Every Buyer NEEDS to Know About Property Cycles
Talk Property To Me Podcast
Episode Synopsis: Understanding Property Cycles Welcome back to another episode of Talk Property To Me! I'm your host, Brad East, alongside my co-host, Aaron Downie. In this episode, we dive deep into the concept of property cycles, a topic that frequently comes up in our discussions with listeners and clients alike. We start by defining what a property cycle is and introduce the four main stages: boom, peak, decline, and recovery. We explain how these stages are often visualized through the property clock, a tool popularized by organizations like Herron Todd White, which provides insights...
info_outline
Can You REALLY Gain an EXTRA $1.5 Million in Retirement Wealth?
Talk Property To Me Podcast
In this episode of Talk Property To Me, I, Brad East, am joined by Cameron Smith from Waterford Financial Planners to discuss a compelling case study on how to significantly boost your retirement savings through strategic financial planning. We dive into the details of how a couple, currently aged 48, can potentially retire with an additional $1.5 million by making informed decisions about their superannuation. We start by examining the couple's current financial situation, which includes a combined super balance of just over $650,000 and a principal residence valued at $1.5 million. The...
info_outline
Newcastle NSW: The Next Big Opportunity for Property Investors in 2025
Talk Property To Me Podcast
Welcome back to another episode of Talk Property To Me! I'm your host, Brad East, and alongside my co-host Aaron Downie, we dive deep into the vibrant property market of Newcastle, exploring its historical evolution and future potential for investors. In this episode, we discuss whether Newcastle is still a viable investment opportunity as we look ahead to 2025. We start by unpacking the historical context of Newcastle, which has transitioned from an industrial hub, known as the "Steel City," to a gentrified urban area with significant growth potential. We highlight the transformation of key...
info_outline
Smart Buying: How to Avoid the 5 Most Common First Home Buyer Mistakes
Talk Property To Me Podcast
Episode Synopsis: 5 Common Mistakes First Home Buyers Make Welcome back to another episode of Talk Property To Me! I'm your host, Brad East, alongside my co-host, Aaron Downie. In today's episode, we dive into a topic that resonates with many: the five common mistakes that first home buyers often make. We kick things off by discussing the pitfalls of taking too much advice from family and friends, particularly parents. While they may have good intentions, their experiences from decades ago may not apply to today's competitive market. We share a cautionary tale about a client whose father's...
info_outline
The Psychology of Real Estate: How Agents Use Anchoring and Scarcity to Influence Buyers
Talk Property To Me Podcast
Episode Synopsis: Submitting Offers and Negotiating with Agents Welcome back to another episode of Talk Property to Me! I'm your host, Brad East, alongside my co-host, Aaron Downey. In this episode, we dive deep into one of the most crucial aspects of purchasing a property: submitting offers and negotiating with real estate agents. We kick off the discussion by emphasising the importance of making a successful offer, which can potentially save you thousands of dollars. We explore the different types of property sales, including private treaties, auctions, and expressions of interest, and how...
info_outlineEpisode Synopsis: Submitting Offers and Negotiating with Agents
Welcome back to another episode of Talk Property to Me! I'm your host, Brad East, alongside my co-host, Aaron Downey. In this episode, we dive deep into one of the most crucial aspects of purchasing a property: submitting offers and negotiating with real estate agents.
We kick off the discussion by emphasising the importance of making a successful offer, which can potentially save you thousands of dollars. We explore the different types of property sales, including private treaties, auctions, and expressions of interest, and how each type influences the negotiation process.
Key Topics Covered:
- Understanding Different Sales Types
- We explain what a private treaty is and how it can vary from agent to agent. Some agents may accept offers as they come, while others might run a campaign before negotiating.
- We discuss the auction process, including pre-auction offers and the conditions that come with them.
- Expressions of interest are also covered, highlighting their use in the current market and the implications for buyers.
- The Role of Real Estate Agents
- We delve into how agents qualify buyers and the tactics they use to gauge interest and drive prices up.
- The concept of "anchoring" is introduced, where agents set a psychological benchmark price to influence buyer perceptions.
- Negotiation Strategies
- We share effective negotiation techniques, such as understanding the seller's motivations and using favourable terms to craft your offer.
- The importance of being prepared with due diligence, including pest and building inspections, is emphasised to strengthen your position.
- Psychological Tactics
- We discuss the psychological aspects of negotiation, including the power of silence and the willingness to walk away.
- The episode highlights how emotional responses can be manipulated by agents and how buyers can maintain control.
- Real-Life Scenarios
- Aaron shares his personal experience of buying a property, illustrating the tactics used by agents and how he navigated the process.
- We also touch on the concept of artificial scarcity and how it can affect buyer decisions.
- Final Tips for Buyers
- We conclude with actionable advice for listeners, encouraging them to understand the market, know the seller's needs, and remain calm during negotiations.
Throughout the episode, we stress that real estate agents are not your friends; they work for the seller. Understanding this dynamic is crucial for any buyer looking to navigate the property market successfully.
Join us for this insightful discussion, and don't forget to like, share, and subscribe to our podcast. If you have any topics you'd like us to cover in future episodes, feel free to reach out in our Facebook group. Thanks for tuning in, and we look forward to catching you in the next episode!
00:00:00 - Introduction to Offers and Negotiations
Welcome back to Talk Property to Me. Discussion on the importance of submitting offers and negotiating with agents.
00:00:10 - Types of Sales: Private Treaty, Auctions, and Expressions of Interest
Overview of different sales methods and their implications for making offers.
00:00:37 - The Role of Real Estate Agents in Negotiation
How agents qualify buyers and the importance of the initial interaction.
00:01:10 - Understanding Private Treaty Sales
Explanation of private treaty sales and how offers are handled.
00:02:14 - Negotiation Starts Early
The significance of the first meeting with the agent and how it sets the stage for negotiations.
00:03:17 - Anchoring Tactics in Real Estate
Discussion on the anchoring tactic and how it influences buyer perception.
00:04:36 - Psychology of Pricing and Discounts
How pricing strategies can create a sense of urgency and perceived value.
00:05:57 - Current Market Dynamics
Analysis of buyer behaviour in the current market and the impact of supply and demand.
00:07:50 - Crafting Offers Beyond Price
Importance of terms and conditions in making a compelling offer.
00:09:18 - Understanding Auction Processes
Details on how auctions work and the significance of unconditional offers.
00:10:45 - Expression of Interest Explained
What expressions of interest mean in the current market context.
00:12:22 - Best and Final Offers
Discussion on the concept of best and final offers and the potential pitfalls.
00:13:51 - The Importance of Silence in Negotiation
How silence can be a powerful tool in negotiations with agents.
00:15:16 - Recognizing Artificial Scarcity
Understanding how agents create a sense of urgency and scarcity.
00:17:08 - The Role of Research in Offers
The necessity of thorough research before making an offer.
00:19:04 - Walking Away as a Strategy
The power of being willing to walk away from a deal.
00:20:38 - Emotional Control in Negotiations
The importance of maintaining emotional distance during negotiations.
00:22:44 - Summary of Key Negotiation Tactics
Recap of the main tactics discussed for effective negotiation.
00:24:15 - Top Tips for Buyers in the Current Market
Final advice for buyers on navigating the current real estate landscape.
00:26:03 - Watch Out for Common Tactics
Identifying tactics to be wary of during the buying process.
00:28:05 - Communicating with Conveyancers
The benefits of direct communication with conveyancers over agents.
00:29:12 - Final Thoughts on Real Estate Agents
Understanding the role of agents and the importance of buyer representation.
00:32:05 - Conclusion and Call to Action
Wrap-up of the episode and encouragement to engage with the podcast.
ABOUT THE HOSTS
BRAD EAST
Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.
Website → https://wisebuygroup.com.au
LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/
Instagram → https://www.instagram.com/bradeast_mortgagebroker/
Facebook → https://www.facebook.com/bradeastofficial
AARON DOWNIE
Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron’s deep understanding of the property market and investment strategies provides listeners with invaluable insights.
Website: https://www.mackenziepropertygroup.com.au/
Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/