New Tech for Buying Property

This week the guys discuss new tech in the buying process- apps made to help the purchasing process perhaps becoming easier/fairer... What do you think?

This week the guys discuss new tech in the buying process- apps made to help the purchasing process perhaps becoming easier/fairer... What do you think?



All right guys welcome back to The Property Pod your weekly engagement into the real estate industry here in Hobart, Tasmania
i'm your host Aaron Horne and i'm joined by our 4one4 Property Co Real Estate Agents... had to take a breath there... Patrick Berry and John McGregor breath was worth it because it came through nice and clear excited to be back excited to be back
yes apologies to all our loyal listeners
out there we uh
we got so close to recording last week
and then i've just got to admit that
i had a i was going to say panic attack
but it wasn't a panic attack
yeah vertigo yeah well that looked like
a panic attack i suppose it felt like
i was here in the room when you're
watching you just go down like was just
strange yeah i thought i was gonna faint
i got everything was spinning and i've
kind of i'm still
only just kind of coming through the
throws of it now and yeah i've had um
sebastian my my other employee as my
personal driver all week
he's been dropping me home and the only
thing i don't understand is though
why are you sitting in the back seat
well every day yeah you're like
chauffeuring around like just because
you're sick you can still sit out the
front
i've been giving him star reviews
conversation today
for
yeah last week we we were in the studio
as the vertigo hit and yeah no it's a
so anyone out there that's experienced
it and if i wasn't um
sympathetic to your spiraling well just
i felt you now and it is rough
man that's weird so yeah didn't you say
you just like costly off balance
oh yeah it's like it's kind of like say
sickness to it's all this inner ear
stuff but the
very first throws of it was literally i
thought i was going to faint and the
whole
we're in not the biggest room here but
the whole room was spinning and
yeah it's basically your brain trying to
correct um an inner ear kind of that's
crazy balance well i'm
super pumped you're able to push through
this week as and we're glad to have you
back it's good to be back good to be
back i know that in my
absence you guys were kind of uh just i
thought actually
there might be a secret episode that
came out without me no we were excited
we're out of here we talked for 20
minutes and then
everyone else thought we'd done the
podcast because we'll go on for so long
but we didn't
we didn't know how to hit record your
dad came in before
i was looking he's like he's like man
there's a lot of things for you to
control here
welcome to the command center don't
touch it
um you guys were listening to a uh a
hack
article or you're driving home and
you've text out said oh this is quite
interesting
yeah some last week was going to be our
topic last week um because it was
happened on the tuesday night i had an
article about house partying for
young people um on hack which obviously
sparked my interest straight away
definitely so i sat in the car and
waited for the episode to finish because
i got home and i was like
yeah we have a radio inside but gotta go
find it and turn it on so
it's funny because when like a good
song's on you'll do that thing like i'm
going to sit in the car and wait
i'll do a lap oh john doesn't like to
sit still keep driving
keep driving fair enough yeah keep going
yeah and they um
we're talking about how different
softwares have come into the market to
help you
buy a home on a bidding process so as
most people would know the
australian marketplace is quite busy at
the moment and most people are sort of
fighting each other to secure a home
yeah
and so all these different softwares are
popped up and we thought it'd be a good
thing to talk about this yeah because
this is right in your wheelhouse like
you're kind of the king of the app the
king of
technology that will i am but at the
same time i don't know if it's something
that would work relatively well in the
hobart market because we don't have the
volume of people
but i could see it working very well on
the mainland and why it's become very
popular when you guys were talking about
it before just as i was listening
and setting up the studio it kind of
came across as like oh yeah this sounds
like yeah
melbourne auction kind of saturday
morning this is something you'd want to
be all over
whereas here i guess it's getting way
busier here with yeah a lot of people
trying to it's like everything
in a couple of years time it'll be
something that will probably be second
nature here as well but
uh like everything hobart just a little
bit slower than the rest of the
that's all right the country does sort
of do things there's nothing wrong with
that well
it is too with with the introduction of
them it's a fundamentally different way
of purchasing property too so
um it's a means that whether or not the
buyers are going to be excited to engage
in that process
um and also too for us it is a different
way of working so yeah so
it is you know a bit challenging as well
to break it down can you kind of go into
what some of these apps or what these
um options definitely so there's three
major players at the moment that appear
to be sort of
running the space they are john one was
open negotiation yep
and market buy and what was the third
one rezzo was the one
was the one on triple j that's one i
always forget about you were starting
with that one actually considering
that was the catalyst for all of us i
think reza looking here is real estate
sales online they've got a kind of a
blue and green
logo looks kind of fancy it's almost
like a little wi-fi logo
picture in there for anyone i could
probably pop it up on screen if i really
wanted to
be fancy but it says an online offer
acceptance and contract
management system allowing agents and
buyers to communicate online
yeah so one thing i really liked about
this one and the way i could see it
potentially working
is um especially here in hobart out of
the three that we're going to talk about
today this is the one where i think
would fit our marketplace the best
at the moment yeah because at the moment
we're doing a lot of um
multiple offers on properties but we're
doing them at an individual level so
we're going out meeting a client
writing up an offer and then we'll go to
the other buyer and we end up with a
situation where we sort of
we can't disclose to the other buyer
what each offer is
but um we need to make sure they're
aware that they need to put their best
foot forward and
so that's a legal issue that you guys
come across where it's kind of like a
confidentiality a bit of confidentiality
a bit of code of conduct
um with rashes there for a while didn't
we because in the in our
once once you get a license to obviously
you're agreeing to a code of conduct
through the
um uh yeah through with the reit
property agents called property agent
sporting those ones um so in that
there's a specific
it says do we will not disclose the
terms of other offers so
the so but then it's not expressly
written into the act but it's just
against our
real you know professional real estate
so it's kind of it's a difficult one
because it's a patrick dangerfield kind
of situation
yeah yeah exactly so for our code we
could risk of losing our license because
we're against our code but technically
it's not illegal
versus the act and it's difficult
because we're engaged by the vendor so
we've got to get the best possible price
for them but
you know when we can't tell one buyer
the other buyers offer you know
it's it's a gray zone it's a really
difficult one but
i guess coming back to this software
that's where something like this might
potentially
work really well so what this software
allows an agent to do is
they send out the offer form to
whoever's interested say after the open
home say there's five people that want
to make an offer yep
they send it out everyone gets to put
into the offer form
their terms of their contract what their
price is if it's subject to finance
building
and so on and then after those offers
come back
the agent has the ability to rate those
offers so they can say radio
john you're number one aaron you're
number two i'm
three and so on yep and when they rate
them the buyer then gets notified radio
you're a
four out of five stars or you're a two
out of five and this goes on three times
so you've got three opportunities based
on the rating review that you get back
if you want to choose to make changes to
your offer to improve its position
okay yeah sure so say you get a
five-star rating back
clearly that's an indicator that's the
best offer so you don't really have to
do anything but
say round two goes out and then you get
a rating back and you've dropped from
five to four
that's an indicator that someone's come
in and made a stronger offer
yep do you want to make a change to
yours so it's a way of sort of giving
the buyer a bit of
clarity i guess as to how their offer is
situated without actually disclosing any
information about the offer yeah i guess
that's a really interesting one because
you'll
often put it in you think oh yeah i've
hit the nut on the head here i'm i'm
sitting pretty i hope the agent's kind
of
letting me know that i'm in the ballpark
yeah i guess this is a way of knowing it
without kind of
crossing the coat of conduct line so
from an agent perspective
like we really i think it's really
clever because it gives transparency and
allows people to better understand how
their offer is positioned yes however
the way hackword is talking about it on
their
on their show the other day they were
saying it's actually putting added
pressure on buyers to potentially pay
more for a property that they may not
necessarily have to because they get
caught up in the bidding war and the
excitement of trying to win a property
so
yeah i can kind of see that side of it
as well like i guess it's the same as
the reason you'd run an auction is that
that kind of creates that exact
um scenario but live and in person and
you're kind of probably making impulse
like oh
this is my maximum i'm going to not go
beyond it and then you might be like oh
well let's
reach beyond our means that way i can
kind of see
that that may do that like oh we were
it's like on ebay you kind of
wait for that last two minutes and then
like they used to be that sniping
software i don't know if it's still
around where you could kind of
put it up by one cent after the one
second ago
yep to make sure your bid was the one
but yeah maybe there's this online kind
of like oh we had the best one now we
want to
push it to the next level and add
another 10 grand
it's an interesting idea yeah so that's
it's crazy to think that
like developers have come up with these
ideas and like i think they've been made
with good intentions but they could be
used
there's always yeah well and that was
someone will always take advantage i
guess
and that's and that's i think where
there's always a non-disclosure of price
there's always well are they telling the
truth yeah and that's where you know the
auction process from a state agent's
perspective is the most
it's most transparent it's like what do
i need to pay more than that person
yeah yeah it's like that's where it is
and i think there was a comment that um
uh one of the was it this gentleman
michael like a couple of different um
advocacy groups i suppose he'd mentioned
that their concern would be that you
know
because again you can't see all the
information it could be
um used um badly but then the ceo of
that company said well no
everything gets tracked so it can be
audited should it ever be questioned
so um it's well okay imagine where three
buyers were like well what where did it
go it's like well
did he just fake my rating to make me
pay more or was he being honest so
but the ceo saying well if ever it was
challenged well they have to they could
produce the information
and then they could clearly audit to so
to show whether or not that advice was
true and correct and fair yeah so
they've got a transparency kind of
clause that they're kind of
um and operating at the back end it
happened once for me
um we got challenged in a scenario of a
multiple offer situation
um you know two years later um
but we i was able to show um
that look here's the three contracts
that were actually there here's the
acknowledgement where they all
acknowledged and said that this was
their best and final offer
um and you know these the changes that
they'd made
um so we could clearly have a paper
trail to show look
i did exactly what we said we would we
gave them all the similar opportunity
um and then we just it was quashed so um
i guess it would sort of be no different
than that i might be
um asking the wrong question here but is
there a
um is there a correct way of presenting
offers to
a vendor like is it i know some people
will be like oh we had the open home the
saturday we'll be doing this on the
sunday evening at this time or
personally i don't think so
um every agent has a different tactic
and it comes down to
their own strategy that they work out
with their owner and that's
how they want offers to be presented i
think you said it there it's so
important remember with the owner
because we can't make decisions we can
only provide opportunities
for both parties and then the owner
makes the final call yeah no it's just
one of those things where i know i've
seen
different ways of going about it and
you're often here i'll be presenting the
offers at this time make sure your best
offers in
at this time so that's a strategy to
kind of be like you've got this long to
think about it
that's correct you've got well and
that's dotting your eyes it's
interesting we've had a local agent
recently
be kicked out of the industry for
deceptive deception of contract so
it can if you do the wrong thing like
there is you know serious ramifications
if you get caught out so
um it's sort of that thing again where
provided on the integrity of the agent
um you know it's whole insulin um all
four if someone's doing the wrong thing
kick them out you know um and that's why
i suppose for us in our business you
know we've got that specific process but
um you can choose with the owner how you
want it to do sometimes the owner might
just want to make a call right in that
moment and give no one else the
opportunity
sometimes we'll say look we're going to
have a close off at 5 00 p.m on monday
with the idea the owner make a decision
on tuesday to allow everyone the
flexibility time to chat with the
solicitor
time to chat with us but each each
scenario is completely different
so say this reso um company this would
kind of be
you discuss that prior to the um
the when you're organizing the sole
agency agreement exactly
like oh let's do the office through this
thing i will set a time
i haven't personally used it yet myself
but now knowing the software exists it's
something now that's in the back of my
mind
the next house i get that i know is
priced really well and i know that it's
got a strong marketing package and it's
going to get that strong interest
i'm probably actually i'm going to
suggest a platform like that yes
um because i feel that it's going to
help streamline the process and
provide sort of everyone an opportunity
so yeah i don't think it's something
that you would set up on every single
property on day one
but it might be something that you're on
the first open home and it all of a
sudden has way more interest than you
anticipate
and then you go back to the office
saturday afternoon you activate it there
and then turn it on send it out to
everyone because you can see right here
we're going to end up with
two or three offers here at a minimum
yep let's go use this software so
yeah i don't think it's something that
you would sell to everyone it would more
come down to the individual property
which again is kind of most properties
you'll try and
and create a marketing package that will
be like this is the way we're going to
sell your property this is
the approach we're going to take yeah so
yeah i guess it's another tool
well and the other thing is too is if we
if you introduce something that the
buyers have never seen before
you know um there's that automatic sense
of oh my god it's a little bit nervous
what is this i don't really feel
comfortable so even that's a delicate
process of
well you know you've got to educate them
into this is how it's going to be
yeah so they can have confidence i think
tech companies are getting pretty good
at that though these days most people
are pretty comfortable opening up an app
and working through the flow
of the questions that's true like even
just something simple like in our office
we've we have an offer form that john
and i use and it's just a google
questionnaire form
and we just flick that out by our sms or
email and i've never had anyone ring me
up and say i can't fill it out it's too
confusing
yeah yeah and it all it allows us to get
all the information we need to be able
to
draw up a contract without any problems
and i guess this is an involvement of
that
yeah to a degree so um yeah look i think
it's really cool there were two others
that we were going to
chat about how we're going to time ours
because that one went way longer than
well these ones are a little bit shorter
so i mean the first one we'll talk about
is
um on the other end of the scale which
is com like it's still a private treaty
situation so when we say private treaty
just not auction yes you know
um now open negotiation has it so you at
least you open up the property at
advertisement and then it'll just say
the current bidding is at
and so it'll be so this is more your
ebay style yeah yeah
you don't even have to register your
details it just says hey the current
offer is at 451. um and then that's it
and so you can jump on create an account
and
go next so oh so you'll already know the
price i was just going to say my brain
immediately went to people trolling and
being like i'll offer
1.1 million for this thing i think
yeah you still have to be vetted don't
you so they still have to
confirm a phone number and an email via
a secondary code and
you'd have to yeah yeah i'm sure that
it's a live person and not legitimate
not yeah just going absolutely nuts
someone in russia wants to buy my house
you could create like another uh reddit
house
house street bets you know and just go
nuts on these properties
um i like the game stop kind of uh yeah
yes i was listening to a podcast
that i was listening to the entourage
podcast where they break down episodes
of that but they had the wolf of wall
street on there oh really jordan belfort
because he's mates with the guy who made
entourage and i was just like
how am i listening to this and then it
turned into they were talking about
shorting stocks and i was just like
i was trying to listen to find out what
vince and turtle were up to
now i'm learning about gangster well
there's a rabbit hole for you oh yeah
so that one that's open negotiation so
um
then obviously there's a time frame at
which it can be shut off
or i suppose in all these the owner
still has control about when
it stops but with that one i think it's
more so
okay we've got a two-week campaign
here's the advertising price here's all
the information
um come with you and you can just make a
bid straight through that platform
um the other so but with that like we
said transparent price
so it's just you know 600 610 620. yeah
so that's
when you mentioned this one this is when
i thought about your kind of code of
conduct stuff we were talking about
before yeah how does that fall into
so the next one that's interesting is
market buy because i remember
speaking with this guy a couple of years
ago and he spent some time with the with
the reit actually because
they were very interested in bringing to
tasmania but they knew
that there's a very different
expectation in the market so
because of our code um all right sorry
so
the code where you're not disclosing
prices is only a tasmanian
uh well i think when we do it or is it
across australia
look we don't know all the states yeah
[Laughter]
in order to get the support they they go
through the institutes
so you know and then with the because
obviously the institute's going to sit
there and go hey this is great for the
industry let's do it but obviously
that's a good stop gap to go hey well if
we're going to make it work
let's you know make sure it's all
through you know up to scope up with the
act
the code and everything so that's why he
went through that channel with the with
market by it's a little bit different
because
you'll still um let's just say we list a
property
um and you know you guys i'll just be
the agent in this scenario and you both
are interested
in the probably like would you be
interested in making offer yes i would
i'd send you a link for you to register
so you would create a market by account
you'd um illustrate the terms of your
alpha might be
you know subject to finance subject to
building yeah and then you get an
exclusive access to the bidding sheet of
that property
so then um then you'll say you might
have you'll be given a
uh like a number so one you're one and
two yep and then you'll and then then
you can start bidding
um so then it'll be you might be at 400
and then you'll be notified that the
bidding has changed and so you can log
on so okay it's now 400
and then everyone can start to see the
pricing but it's exclusively to those
who are
bidding so so if you're so the main
difference you're saying john between
the two open negotiation and market buy
is one's just on the public space
everyone can see it yeah the other one
is sort of got a closed door so unless
you're invited into that room
you can't see what's going on yeah okay
so that was sort of then you still don't
know who you who each other are
you don't know the other elements of the
terms of the offer all that you know is
what someone's prepared to pay
yeah so that sort of then ends up in a
uh upset at before where
at least the the negotiation process is
fair so
you know you've got everyone's on the
same playing field in that sense and
it's only
exclusively just to the people
interested and then the bidding time
frames are open during certain hours so
it might be from nine till six
and then it closes off at night time
then it reopens at nine and then
at any stage that the agent the owner
can stop the process
and then um have the capacity to call up
these people and have a discussion
one-on-one
so it's kind of like um which in if
you've ever been to an auction
you'll actually see that happen where
you know real estate if there's a
multiple team and multiple buyers
they'll be walking around to everyone
having conversations while it's active
so um that works very much in the same
way a transparent auction does
but online so which i guess in this
modern covert age like it's something i
know there's a lot online auctions where
we were watching a few
yeah um back in the early days of covert
just being like man look at the
production value
yeah yeah they had like such tv desks
very cool so that was um
sorry just pause do you want to respond
to that message no that was because
we might have had a friend of the pods
so that i really quite liked that that
marker by if it was going to be active
was probably
um uh like probably the one that could
have fit tazzy
the closest um but then obviously with
rezo
um with that then that becomes like a
yeah a star rating but you still don't
see the prices whereas market buys
straight straight up you see so
sort of works in similar ways but
slightly different at the same time
at the same time yeah for some reason
i'm not bad-mouthing any company for
some reason that last one
that you think i i pictured somebody
getting in there and just like doing
fake bids and trolling it up to try and
push well again though
um the agent has to give them access so
what we would do
oh i think that's why you go okay we
need to see your details
you know you're probably not much
different to how we vet an offer that
comes in absolutely
yeah yeah yeah well it's no no different
you're exactly right well we have to
take people on their word to a degree
yeah yeah
no it's just for some reason your brain
jumped straight to like oh like
i'd feel a bit stooged a little 13 year
old kid laughing his ass off in the back
room
yes because he makes up the bids well
and it is possible
i i guess the troublesome thing is once
the bids in it
would be like that crazy lady on the
block that ended up winning one of the
houses and then had no money
it was pretty bad and the thing is
though that's what uh you know we can
get in trouble for if we just say oh
look
we've got two offers on the property and
there clearly isn't and we can't show
that there was
if we get audited later we can we'll
lose our license yeah you know so
um that's again i suppose we're you know
it is a challenging for buyers like is
the agent telling the truth
at least i suppose you could argue with
those platforms it's like it's not me
telling you
it's you know um this is actually
happening yeah um unless you know
an agent or the owner is in there like
under a false account i was just
thinking
who really you know how they always use
like john citizen on all the credit
cards yeah imagine if there's a real
person out there called
i was like wow you're sick of people
always using my name poor guys trying to
get a
credit rating they're like you've got
seven hundred cards elsewhere
my favorite thing was remember the old
pencil cases where you could put the
name in there
it always had john so because if you
it's oh yes where you put the little
letters in
yeah yeah and the cool thing was because
they're old you still can get them queen
got one on the weekends
because because i got the gold letters
because the letters they provided were
like red or grey but because the front
were gold i was always the gold child
still are you mums and life has never
got better
but i i think these technologies are
really exciting it's inevitable i think
that
they will start to become commonplace um
and i suppose for us it's just to be
about village
vigilant you'd say about whether or not
when to integrate into our practice
yeah look it sounds very interesting i
think there's definitely scope for
that moving forward and yeah there's
always technology that's kind of
coming in and it's just being on top of
that and making sure we're
yeah all aware of what's out there yeah
definitely cool
awesome well thank you for listening
once again to the property pod it's been
a
hoot to be back absolutely and we'll be
back next week with more great cheers
see you guys bye you have been listening
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