1
00:00:00,080 --> 00:00:02,240
Speaker 1: And he's focus on world two property in sights. Mate.

2
00:00:02,240 --> 00:00:03,480
Speaker 2: Thanks for having me Mark, So.

3
00:00:04,320 --> 00:00:06,840
Speaker 1: I think you should quickly give us a little bit

4
00:00:06,840 --> 00:00:09,639
Speaker 1: of snapshot about your deal. You were a real estate agent,

5
00:00:09,880 --> 00:00:13,960
Speaker 1: I was vendor a byside by vendor side and then

6
00:00:14,400 --> 00:00:17,239
Speaker 1: what did you do? Yeah, so my background is I

7
00:00:17,239 --> 00:00:19,159
Speaker 1: started out as a real estate agent at about the

8
00:00:19,200 --> 00:00:22,560
Speaker 1: age of nineteen in Paran in Melbourne, and I was

9
00:00:22,600 --> 00:00:24,400
Speaker 1: fortunate enough to be under a guy by the name

10
00:00:24,440 --> 00:00:26,560
Speaker 1: of Tony Pride, who was a good mentor of mine,

11
00:00:26,560 --> 00:00:28,720
Speaker 1: had a large business down there and he sent me

12
00:00:28,760 --> 00:00:30,600
Speaker 1: up with a real estate business, got me running a

13
00:00:30,600 --> 00:00:32,040
Speaker 1: P and L. I had no idea of what a

14
00:00:32,040 --> 00:00:33,920
Speaker 1: profit and WEALTHT statement look like at the time of

15
00:00:34,320 --> 00:00:36,599
Speaker 1: age or twenty years old. Yeah, it turned out they

16
00:00:36,600 --> 00:00:39,000
Speaker 1: are and Neave it does actually pretty Importantfit's probably the

17
00:00:39,000 --> 00:00:41,600
Speaker 1: most important thing, not revenue, but technology is a different

18
00:00:41,600 --> 00:00:44,520
Speaker 1: game on that front. And throughout that process, what would

19
00:00:44,560 --> 00:00:47,680
Speaker 1: happen is on a Saturday afternoon, as you would know,

20
00:00:47,760 --> 00:00:50,159
Speaker 1: you call Fort Dater Houses, so you call call Logic,

21
00:00:50,240 --> 00:00:51,200
Speaker 1: you call Aria.

22
00:00:50,960 --> 00:00:52,960
Speaker 2: You call Demain and call one in Victoria, which is

23
00:00:53,000 --> 00:00:56,400
Speaker 2: property Data. Became really curious about this process because I

24
00:00:56,480 --> 00:00:59,080
Speaker 2: was frustrated as an agent driving around a Saturday after

25
00:00:59,120 --> 00:01:02,480
Speaker 2: auctions calling for data houses times of both three auctions,

26
00:01:02,480 --> 00:01:04,880
Speaker 2: a lot of phone calls in between buyer appointments, etc.

27
00:01:05,680 --> 00:01:08,240
Speaker 2: And what I realized was each of those centers had

28
00:01:08,240 --> 00:01:10,960
Speaker 2: about twenty to thirty people sitting there waiting for real

29
00:01:11,080 --> 00:01:13,039
Speaker 2: estate agents around the country to call them and answer

30
00:01:13,120 --> 00:01:15,640
Speaker 2: the phone to tell them a few really simple things.

31
00:01:15,800 --> 00:01:17,880
Speaker 2: What's the address of the property, what's the disclosure, and

32
00:01:17,880 --> 00:01:19,360
Speaker 2: what was the price so we can go on the

33
00:01:19,360 --> 00:01:22,360
Speaker 2: paper on Sunday. And so became really curious around that.

34
00:01:22,440 --> 00:01:24,520
Speaker 2: We formed a business off the back of it called

35
00:01:24,560 --> 00:01:27,520
Speaker 2: bid Tracker at the time, really simple product and a

36
00:01:27,520 --> 00:01:29,240
Speaker 2: pretty simple person as I set it as a real

37
00:01:29,319 --> 00:01:32,400
Speaker 2: estate agent in formal life. Effectively, what would happen is

38
00:01:32,760 --> 00:01:35,399
Speaker 2: you would scribe all the bids into an iPad. The

39
00:01:35,480 --> 00:01:38,600
Speaker 2: moment you sold that property, we would instantly notify everyone

40
00:01:38,640 --> 00:01:42,959
Speaker 2: within your team, and you would instantly notify also all

41
00:01:42,959 --> 00:01:45,720
Speaker 2: the data houses. So we were actually able to streamline

42
00:01:45,760 --> 00:01:48,760
Speaker 2: the process real estate agents. They could continue to update

43
00:01:48,800 --> 00:01:50,680
Speaker 2: disclosures throughout that Saturday afternoon.

44
00:01:50,680 --> 00:01:52,480
Speaker 1: It was probably by email or something, was.

45
00:01:52,400 --> 00:01:55,320
Speaker 2: It, Yeah, before it was actually spreadsheets. So we took

46
00:01:55,320 --> 00:01:57,600
Speaker 2: on the spreadsheets. All these real estate brands of Victoria.

47
00:01:57,680 --> 00:02:00,400
Speaker 2: We'd have thousands of spreadsheets coming in and whilst we

48
00:02:00,480 --> 00:02:03,040
Speaker 2: was still building the product to actually manage their old

49
00:02:03,120 --> 00:02:06,760
Speaker 2: process whilst implementing the technology. And at the time I

50
00:02:06,800 --> 00:02:08,560
Speaker 2: was about twenty four years old, and some of the

51
00:02:08,600 --> 00:02:11,079
Speaker 2: agencies like you're jealous Craigs and Marshal Whites of the

52
00:02:11,120 --> 00:02:13,880
Speaker 2: world were like, hey, you're actually pretty good at building technology.

53
00:02:13,880 --> 00:02:16,360
Speaker 2: Come and solve a few more problems for me. So

54
00:02:16,400 --> 00:02:19,360
Speaker 2: we actually ventured into the space of what else can

55
00:02:19,400 --> 00:02:23,160
Speaker 2: we digitize within these offices? Because real estate process is

56
00:02:23,200 --> 00:02:26,160
Speaker 2: pretty archaic, So what a paperwork involved in it? Four

57
00:02:26,240 --> 00:02:28,760
Speaker 2: hundred pieces of paper just for one contract to sale

58
00:02:29,000 --> 00:02:31,120
Speaker 2: sending it out to three or four different parties being

59
00:02:31,120 --> 00:02:33,960
Speaker 2: the vendor to buy, the seller, etc. And so we

60
00:02:34,000 --> 00:02:36,760
Speaker 2: went about the process of actually digitizing the two most

61
00:02:36,760 --> 00:02:39,919
Speaker 2: important parts of their workflow the moment you listed a property,

62
00:02:39,960 --> 00:02:41,959
Speaker 2: which is the agreement between the vendor and the agent

63
00:02:42,000 --> 00:02:44,160
Speaker 2: that allowed you just sign up the commission rate, and

64
00:02:44,200 --> 00:02:47,200
Speaker 2: then the second part being the digital contractor sale. And

65
00:02:47,280 --> 00:02:49,600
Speaker 2: throughout that process ended up figuring out we had a

66
00:02:49,639 --> 00:02:51,400
Speaker 2: call one day from one of our clients. He's like, man,

67
00:02:51,480 --> 00:02:52,760
Speaker 2: I just want to give you a call and say

68
00:02:53,160 --> 00:02:55,520
Speaker 2: thanks for saving me so much time. And I was

69
00:02:55,560 --> 00:02:57,520
Speaker 2: like thanks. I hung up the phone and I'm like,

70
00:02:57,800 --> 00:02:59,760
Speaker 2: we should actually go and quantify this so she should

71
00:02:59,800 --> 00:03:01,640
Speaker 2: find how much time I was saving for these realists

72
00:03:01,639 --> 00:03:04,359
Speaker 2: at agents. We figured out that's about three hours per

73
00:03:04,400 --> 00:03:07,960
Speaker 2: transaction that we were saving for them. Fast forward a

74
00:03:07,960 --> 00:03:10,640
Speaker 2: few years. We're kind of learning as we go to

75
00:03:10,800 --> 00:03:13,880
Speaker 2: young co founders and we got to a team about

76
00:03:13,880 --> 00:03:16,519
Speaker 2: thirty and we met Jason Pelgrino's to see old Domain

77
00:03:17,280 --> 00:03:19,840
Speaker 2: and effectively he was like, hey, I really like what

78
00:03:19,880 --> 00:03:22,120
Speaker 2: you're doing. I'd like to acquire your business. So that

79
00:03:22,160 --> 00:03:24,800
Speaker 2: was in November of twenty nineteen. At that time, we

80
00:03:24,840 --> 00:03:27,359
Speaker 2: were about ten percent of all transactions in Australia going

81
00:03:27,400 --> 00:03:30,960
Speaker 2: through the platform. He took it over. I stayed on

82
00:03:31,040 --> 00:03:32,280
Speaker 2: and continued to run it during year.

83
00:03:32,320 --> 00:03:33,359
Speaker 1: So you sold it to Domain.

84
00:03:33,400 --> 00:03:36,280
Speaker 2: So we sold it to Domain. At the time, it

85
00:03:36,400 --> 00:03:37,960
Speaker 2: was a pretty big moment, you know. I come from

86
00:03:38,360 --> 00:03:42,320
Speaker 2: a small country town in Victoria called a Chuca, and

87
00:03:42,680 --> 00:03:44,480
Speaker 2: it was a lot of money at the time. It's

88
00:03:44,480 --> 00:03:46,480
Speaker 2: still as it was a twenty four million dollar acquisition

89
00:03:46,920 --> 00:03:49,200
Speaker 2: and it was just a pure hustle the whole way through.

90
00:03:49,240 --> 00:03:51,840
Speaker 2: You know, I sold my car, sold my washing machine.

91
00:03:51,840 --> 00:03:53,760
Speaker 2: I was living in a garage for four years with

92
00:03:54,120 --> 00:03:57,160
Speaker 2: who is now my wife at the time. So the

93
00:03:57,240 --> 00:04:00,480
Speaker 2: grueling process of going from pure idea the way through

94
00:04:00,480 --> 00:04:03,640
Speaker 2: to exit and getting there was a hugely rewarding process

95
00:04:03,640 --> 00:04:07,640
Speaker 2: for me. Then we went into a process of well,

96
00:04:07,680 --> 00:04:09,280
Speaker 2: how do we scale this thing? How do we get

97
00:04:09,320 --> 00:04:11,560
Speaker 2: it out to the masses? And for us, Domain is

98
00:04:11,560 --> 00:04:13,400
Speaker 2: a really good partner and so.

99
00:04:15,520 --> 00:04:17,720
Speaker 1: A lot of times what happens and these deals at

100
00:04:17,760 --> 00:04:22,120
Speaker 1: the acquirer the purchase which is domain, they require you

101
00:04:22,160 --> 00:04:24,400
Speaker 1: to stay on. Not only did transition to the business,

102
00:04:24,480 --> 00:04:26,840
Speaker 1: but they probably like the signs that they're seeing from you.

103
00:04:27,279 --> 00:04:28,760
Speaker 1: What do you do with Domain? So what are you

104
00:04:28,760 --> 00:04:29,600
Speaker 1: looking to domain now?

105
00:04:30,080 --> 00:04:32,560
Speaker 2: Yeah, So at the time we had a two year

106
00:04:32,600 --> 00:04:34,960
Speaker 2: own out, which is a pretty normal process where the

107
00:04:35,360 --> 00:04:37,960
Speaker 2: acquirer is trying to figure out how do we integrate

108
00:04:38,000 --> 00:04:39,760
Speaker 2: this business, how do we make it work inside of

109
00:04:39,800 --> 00:04:42,400
Speaker 2: a much like an organization. As I said, we were

110
00:04:42,400 --> 00:04:46,320
Speaker 2: a team of about thirty at the time doing about

111
00:04:46,320 --> 00:04:50,120
Speaker 2: closer million dollars in revenue, and Jason approached me at

112
00:04:50,120 --> 00:04:51,479
Speaker 2: the end of the earn out or towards the end

113
00:04:51,480 --> 00:04:53,599
Speaker 2: of the earn out and said, hey, I'd really like

114
00:04:53,800 --> 00:04:55,680
Speaker 2: you to stay around or teach how to run a

115
00:04:55,760 --> 00:05:00,360
Speaker 2: much larger organization than running today and in return continue

116
00:05:00,360 --> 00:05:02,480
Speaker 2: to annoy people inside of a big core and bring

117
00:05:02,520 --> 00:05:05,840
Speaker 2: a bit of entrepreneurial spirit along. So what we did

118
00:05:05,880 --> 00:05:08,680
Speaker 2: is we went through the process of integrating our team

119
00:05:08,880 --> 00:05:12,919
Speaker 2: into the broader domain organization and at that time we

120
00:05:13,400 --> 00:05:16,560
Speaker 2: formed what was called Agent Solutions. So for those that

121
00:05:16,600 --> 00:05:19,479
Speaker 2: don't know, the way the domain business operates is you

122
00:05:19,520 --> 00:05:22,440
Speaker 2: see domain dot com, dot au, which most consumers know.

123
00:05:22,720 --> 00:05:25,200
Speaker 2: It's a brand out in market, very well trusted by many,

124
00:05:25,720 --> 00:05:28,560
Speaker 2: and effectively, inside of it, we have all these workflow

125
00:05:28,600 --> 00:05:31,080
Speaker 2: solutions that we help real estate agents to become even

126
00:05:31,120 --> 00:05:33,679
Speaker 2: more efficient at what they're doing day to day. Things

127
00:05:33,760 --> 00:05:36,200
Speaker 2: like price Final, which is a data product which provides

128
00:05:36,279 --> 00:05:38,400
Speaker 2: data and insights so they can get effectively price the

129
00:05:38,480 --> 00:05:41,120
Speaker 2: home home Pass, which is a check in tool so

130
00:05:41,160 --> 00:05:43,880
Speaker 2: they can effectively capture people's details when they come to

131
00:05:43,920 --> 00:05:47,000
Speaker 2: the open for inspection, and real Time Agent. And we

132
00:05:47,040 --> 00:05:49,920
Speaker 2: went through this process of trying to figure out how

133
00:05:49,960 --> 00:05:52,280
Speaker 2: do you bring what was great inside of a startup

134
00:05:52,320 --> 00:05:54,920
Speaker 2: culture mentality of you know, you've only got so many

135
00:05:55,000 --> 00:05:56,920
Speaker 2: days left before we run out of money. So let's

136
00:05:56,920 --> 00:05:59,120
Speaker 2: make sure account and have a huge impact inside of

137
00:05:59,120 --> 00:06:02,479
Speaker 2: that business and don't lose that part, but get the

138
00:06:02,520 --> 00:06:05,040
Speaker 2: things that there great out of a large scale organization,

139
00:06:05,200 --> 00:06:07,159
Speaker 2: such as access to a huge sales team of one

140
00:06:07,200 --> 00:06:10,960
Speaker 2: hundred people, data scientists, a strategy team. And so we

141
00:06:11,000 --> 00:06:13,039
Speaker 2: went about that. I said to Jason, and I'd have

142
00:06:13,080 --> 00:06:15,520
Speaker 2: it all integrated within three months. I think he knew

143
00:06:15,680 --> 00:06:17,359
Speaker 2: very well that it would take a lot longer than that.

144
00:06:17,400 --> 00:06:18,600
Speaker 2: Took about eighteen months.

145
00:06:18,440 --> 00:06:19,200
Speaker 1: To love ambition.

146
00:06:19,320 --> 00:06:22,520
Speaker 2: Yeah, embed the culture inside of and figure it out

147
00:06:22,600 --> 00:06:24,920
Speaker 2: and figure out how do we get these people working together?

148
00:06:25,880 --> 00:06:27,480
Speaker 2: And I was fortunate enough to look after that was

149
00:06:27,480 --> 00:06:31,640
Speaker 2: a team about one hundred people. More recently, I've stepped

150
00:06:31,640 --> 00:06:34,760
Speaker 2: into what's called the head of Customer Solutions, so I

151
00:06:34,839 --> 00:06:38,680
Speaker 2: look after everything from the domain called listing business, which

152
00:06:38,720 --> 00:06:40,360
Speaker 2: is the product that we sell to agents so they

153
00:06:40,360 --> 00:06:43,679
Speaker 2: can market proper products. Being the agents, Yeah, being the agents.

154
00:06:44,560 --> 00:06:49,400
Speaker 2: We kind of have four, sorry, three core customer segments.

155
00:06:49,800 --> 00:06:52,440
Speaker 2: So we've got consumers, so how we think about consumers

156
00:06:52,440 --> 00:06:55,359
Speaker 2: every single day. We've got data and enterprise, how we

157
00:06:55,400 --> 00:06:59,400
Speaker 2: sell to banks and to governments and then real estate agents,

158
00:06:59,400 --> 00:07:01,920
Speaker 2: which is our core business. How do we actually help

159
00:07:01,960 --> 00:07:05,000
Speaker 2: them to market themselves and market the properties that they've

160
00:07:05,000 --> 00:07:06,280
Speaker 2: gone on behalf of their vendors.

161
00:07:06,600 --> 00:07:13,160
Speaker 1: So you're right, it's about the agent for your business,

162
00:07:13,160 --> 00:07:15,760
Speaker 1: about the agent being able to get a nice picture

163
00:07:15,800 --> 00:07:17,679
Speaker 1: and I phone number up there on an email address

164
00:07:17,680 --> 00:07:21,360
Speaker 1: and maybe maybe a photograph of themselves. But more importantly,

165
00:07:21,400 --> 00:07:25,160
Speaker 1: a really good stock in terms of the property is

166
00:07:25,240 --> 00:07:29,480
Speaker 1: being offered for sale for the ultimate vendor. But at

167
00:07:29,480 --> 00:07:32,040
Speaker 1: the same time you're trying to appease, you're not at peace,

168
00:07:32,080 --> 00:07:35,360
Speaker 1: You're trying to attract the customer of the bio as

169
00:07:35,360 --> 00:07:37,680
Speaker 1: well being your other customer as well. So it's quite

170
00:07:37,720 --> 00:07:39,880
Speaker 1: a complicated sort of matrix.

171
00:07:40,320 --> 00:07:43,040
Speaker 2: It is. It's definitely a lot more complicated than it

172
00:07:43,080 --> 00:07:46,320
Speaker 2: appears when you go to domain dot com, because.

173
00:07:45,880 --> 00:07:47,720
Speaker 1: Well, that's the whole trick to make that look simple.

174
00:07:47,840 --> 00:07:51,200
Speaker 2: It is, and there's an element of transparency that the

175
00:07:51,200 --> 00:07:54,040
Speaker 2: consumer wants, but there's a bit of a game to

176
00:07:54,160 --> 00:07:57,640
Speaker 2: an agent wants to maximize the sale price. I remember

177
00:07:57,800 --> 00:08:00,520
Speaker 2: being back as an agent and you would often have

178
00:08:00,560 --> 00:08:02,360
Speaker 2: a quote range and you would set up and go

179
00:08:02,440 --> 00:08:05,760
Speaker 2: down an auction process. Now Most buyers, as you well know,

180
00:08:05,960 --> 00:08:09,280
Speaker 2: don't really like the auction process because it's type of competitive,

181
00:08:09,360 --> 00:08:12,640
Speaker 2: it's scary, I might make mistake, but the ultimate thing

182
00:08:12,720 --> 00:08:14,600
Speaker 2: is as soon as that buyer becomes a seller, they

183
00:08:14,600 --> 00:08:16,600
Speaker 2: want to go down the auction process because they see

184
00:08:16,600 --> 00:08:19,360
Speaker 2: the success that it drives. So it's always playing this

185
00:08:19,480 --> 00:08:23,240
Speaker 2: tension between how do you provide greater transparency, more confidence

186
00:08:23,240 --> 00:08:25,160
Speaker 2: for the consumer to be able to put that offering

187
00:08:25,240 --> 00:08:28,080
Speaker 2: not to want to transact, versus having the agent have

188
00:08:28,200 --> 00:08:30,560
Speaker 2: control over that process end to end so they can

189
00:08:30,600 --> 00:08:31,800
Speaker 2: work their magic as well.

190
00:08:32,000 --> 00:08:34,120
Speaker 1: Well, what is domain doing? That's sort of I mean,

191
00:08:34,160 --> 00:08:36,880
Speaker 1: you obviously know who the other elephant in the room is,

192
00:08:36,920 --> 00:08:40,160
Speaker 1: then that's Aria, but how does what does domain do

193
00:08:40,240 --> 00:08:41,400
Speaker 1: to differentiate itself?

194
00:08:41,800 --> 00:08:45,839
Speaker 2: So we have what's called a marketplace strategy. So we've

195
00:08:45,960 --> 00:08:49,040
Speaker 2: chosen to kind of be a bit more dynamic in

196
00:08:49,040 --> 00:08:50,920
Speaker 2: the approach that we've got with the assets that we've

197
00:08:50,960 --> 00:08:54,440
Speaker 2: gone and acquired. So Real Time Agent as example, which

198
00:08:54,480 --> 00:08:56,680
Speaker 2: was my business. It's an end to end workflow tool

199
00:08:56,800 --> 00:08:59,679
Speaker 2: for agents. We've got a range of other products like

200
00:08:59,720 --> 00:09:01,760
Speaker 2: real Base that we acquired two years ago FRO about

201
00:09:01,800 --> 00:09:04,760
Speaker 2: one hundred and eighty million, which is an efficiency tool. Again,

202
00:09:05,120 --> 00:09:07,640
Speaker 2: it's about how do you provide the agent with a

203
00:09:07,679 --> 00:09:10,200
Speaker 2: tool to be able to effectively market themselves in the

204
00:09:10,240 --> 00:09:13,040
Speaker 2: living room and how they actually bring a dynamic quote

205
00:09:13,080 --> 00:09:16,560
Speaker 2: together for you as a potential vendor, to understand all

206
00:09:16,640 --> 00:09:20,080
Speaker 2: the costs involved where you're going to spend that money, Signboards,

207
00:09:20,400 --> 00:09:23,440
Speaker 2: brochures going in the paper, are going on domain, etc.

208
00:09:23,760 --> 00:09:25,920
Speaker 2: So you give that when you say as a tool,

209
00:09:26,280 --> 00:09:28,680
Speaker 2: it might be in the this might be sort of

210
00:09:28,679 --> 00:09:31,440
Speaker 2: about to appear on a an iPad to it for

211
00:09:31,480 --> 00:09:33,640
Speaker 2: example of the agent walking into the room, who's going

212
00:09:33,640 --> 00:09:35,560
Speaker 2: in there to try to win that vendor over. Yeah,

213
00:09:35,559 --> 00:09:38,000
Speaker 2: so we will give them all that information to be

214
00:09:38,040 --> 00:09:40,440
Speaker 2: able to go in that living room armed with every

215
00:09:40,440 --> 00:09:42,520
Speaker 2: single door amount of what that's going to cost them,

216
00:09:42,880 --> 00:09:44,920
Speaker 2: as well as provide them with another tool which is

217
00:09:44,960 --> 00:09:48,240
Speaker 2: called engage, which is you would have often seen on

218
00:09:48,360 --> 00:09:50,920
Speaker 2: paper they've come in with this beautiful look book of

219
00:09:51,280 --> 00:09:53,280
Speaker 2: why are they are the greatest agent in the country.

220
00:09:53,679 --> 00:09:56,240
Speaker 2: What we've been able to do is successfully digitize all

221
00:09:56,320 --> 00:09:59,120
Speaker 2: that paperwork and actually provide it to them in a

222
00:09:59,160 --> 00:10:02,360
Speaker 2: tool can pitch it on the spot on their iPad,

223
00:10:02,600 --> 00:10:05,520
Speaker 2: then leave it with the vendor and effectively, what will

224
00:10:05,520 --> 00:10:08,120
Speaker 2: happen is the moment that vendor opens it again, the

225
00:10:08,200 --> 00:10:10,880
Speaker 2: agent gets a notification. So you're sitting there having a

226
00:10:10,880 --> 00:10:13,640
Speaker 2: coffee thinking about that agent's pitch, that will get a

227
00:10:13,640 --> 00:10:16,320
Speaker 2: notification to say that you've actually opened it. To know

228
00:10:16,360 --> 00:10:17,920
Speaker 2: that that's a good time to actually give you a

229
00:10:17,960 --> 00:10:19,400
Speaker 2: call and actually discuss it again.

230
00:10:19,520 --> 00:10:23,440
Speaker 1: Yeah, that is like as close to the event as possible.

231
00:10:23,840 --> 00:10:27,679
Speaker 2: Yeah, and so why is that important to our strategy

232
00:10:27,760 --> 00:10:31,520
Speaker 2: versus others is we believe that agents play a really

233
00:10:31,520 --> 00:10:35,080
Speaker 2: critical role in the transaction. You know, I've seen it

234
00:10:35,160 --> 00:10:37,520
Speaker 2: time and time again, coming from the startup world of

235
00:10:38,040 --> 00:10:40,719
Speaker 2: a consumer has a bad experience with an agent. They

236
00:10:40,720 --> 00:10:43,720
Speaker 2: think they're unnecessary inside of that process, and so they

237
00:10:43,760 --> 00:10:45,959
Speaker 2: go and try and replicate something that's not going to

238
00:10:46,000 --> 00:10:48,800
Speaker 2: need an agent in that process. What they forget about

239
00:10:48,840 --> 00:10:52,080
Speaker 2: is that human elements, the emotional It's that last mile

240
00:10:52,160 --> 00:10:55,760
Speaker 2: inside of the transaction that's really really difficult to replicate.

241
00:10:55,840 --> 00:10:58,880
Speaker 2: It's that emotional Component's the human component of the transaction

242
00:10:59,280 --> 00:11:01,400
Speaker 2: that brings the agent together with the buyer and the

243
00:11:01,480 --> 00:11:02,839
Speaker 2: vendor to actually bring a deal together.

244
00:11:03,080 --> 00:11:05,800
Speaker 1: I think that's interesting because I just recently experienced selling

245
00:11:05,840 --> 00:11:09,040
Speaker 1: something and and I haven't sold it for a long time,

246
00:11:09,080 --> 00:11:12,679
Speaker 1: but I recently experienced selling something and the if it

247
00:11:12,720 --> 00:11:15,559
Speaker 1: was up to and maybe you're going to correct me

248
00:11:15,600 --> 00:11:16,800
Speaker 1: on this a bit later on, but if it was

249
00:11:16,880 --> 00:11:22,000
Speaker 1: up to AI or digital means, it'd be very hard

250
00:11:22,040 --> 00:11:24,480
Speaker 1: to replicate the thing where the agent rings up all

251
00:11:24,520 --> 00:11:26,360
Speaker 1: the people who had walked through the place, all the

252
00:11:26,360 --> 00:11:30,000
Speaker 1: people asked for a contract. It's very difficult to replicate

253
00:11:30,120 --> 00:11:34,120
Speaker 1: the emotional discussion the day before the auction, for example. Yeah,

254
00:11:34,200 --> 00:11:37,000
Speaker 1: and then also on the day, good morning, how are

255
00:11:37,000 --> 00:11:40,160
Speaker 1: you going? Blah blah blah, you know, beautiful day, Like,

256
00:11:40,280 --> 00:11:43,200
Speaker 1: doesn't the backyard look fantastic because it's a sunny day,

257
00:11:43,320 --> 00:11:47,560
Speaker 1: north facing backyard. It's great that the rain has stopped.

258
00:11:47,679 --> 00:11:50,880
Speaker 1: This place looks beautiful. Like all those sorts of conversations.

259
00:11:51,679 --> 00:11:53,360
Speaker 1: I don't know, it's going to be a while before

260
00:11:53,440 --> 00:11:56,120
Speaker 1: AI picks up on that. And that's assuming someone who's

261
00:11:56,160 --> 00:11:57,880
Speaker 1: even prepared over their device when they're walking in the

262
00:11:57,920 --> 00:12:03,840
Speaker 1: back yard exactly because the device is driven. So do

263
00:12:03,920 --> 00:12:07,120
Speaker 1: you actually so your domain is to some except when

264
00:12:07,120 --> 00:12:10,280
Speaker 1: it comes to reset agents who list the properties on

265
00:12:10,360 --> 00:12:14,720
Speaker 1: your site. It's a bit educational, it is. It is

266
00:12:14,760 --> 00:12:16,079
Speaker 1: so I think he'll optimize.

267
00:12:16,400 --> 00:12:19,280
Speaker 2: It is so it's about how do you optimize for

268
00:12:19,360 --> 00:12:21,920
Speaker 2: the part of the process that they are greater and

269
00:12:22,000 --> 00:12:24,600
Speaker 2: great real estate agents. You look like the Alexander Phillips

270
00:12:24,600 --> 00:12:27,320
Speaker 2: of the world, and those guys like he still does

271
00:12:27,360 --> 00:12:29,920
Speaker 2: the vendor callbacks, He still calls the buyers, he still

272
00:12:29,920 --> 00:12:32,000
Speaker 2: does the grunt work, even though he makes tens of

273
00:12:32,000 --> 00:12:34,920
Speaker 2: millions of dollars in commission, which tells you that's the

274
00:12:35,080 --> 00:12:38,120
Speaker 2: ingredient is hard work. The other things that go around it.

275
00:12:38,160 --> 00:12:40,360
Speaker 2: He has a huge support team that sit around him.

276
00:12:40,360 --> 00:12:42,640
Speaker 2: He's not unique in that thereat All the greats have that,

277
00:12:42,800 --> 00:12:45,440
Speaker 2: and it's about scalability. How do you get them out

278
00:12:45,480 --> 00:12:49,640
Speaker 2: of a task or part of their process that is

279
00:12:49,679 --> 00:12:53,280
Speaker 2: not doll productive and either automate it or put people

280
00:12:53,280 --> 00:12:55,800
Speaker 2: in that component of the process so that he's on

281
00:12:55,840 --> 00:12:58,400
Speaker 2: a doll productive task every moment throughout his day.

282
00:12:58,480 --> 00:13:02,680
Speaker 1: Certainly there might be ten tarks for that particular property

283
00:13:02,720 --> 00:13:04,840
Speaker 1: in relation to that particular vendor, for that particular day.

284
00:13:05,920 --> 00:13:08,360
Speaker 1: Alex will work out that he's good at task number one,

285
00:13:08,600 --> 00:13:10,640
Speaker 1: but the other nine can be sort of outsourced. Yeah,

286
00:13:10,679 --> 00:13:13,840
Speaker 1: and your program will take care of the outsourcing.

287
00:13:13,960 --> 00:13:15,959
Speaker 2: Yeah, and so a large part of our day is

288
00:13:16,120 --> 00:13:17,839
Speaker 2: what are the parts of the process that we can

289
00:13:17,880 --> 00:13:20,760
Speaker 2: continue to automate for them and not take away from

290
00:13:20,800 --> 00:13:23,720
Speaker 2: the human element or the part that they're greater scale

291
00:13:23,760 --> 00:13:26,400
Speaker 2: it and in real time agent it's a good example

292
00:13:26,440 --> 00:13:28,720
Speaker 2: of that. That's three hours per transaction that we save.

293
00:13:29,200 --> 00:13:30,480
Speaker 2: So you think as a total.

294
00:13:30,320 --> 00:13:32,200
Speaker 1: Is a percentage of total what would there be like

295
00:13:32,880 --> 00:13:34,000
Speaker 1: three out of what ten hours?

296
00:13:34,040 --> 00:13:36,840
Speaker 2: I mean what is I think originally it was like

297
00:13:37,000 --> 00:13:40,120
Speaker 2: twelve or fifteen hours substantially, So it's a huge amount

298
00:13:40,120 --> 00:13:42,200
Speaker 2: when you think about the cost per sale, when you

299
00:13:42,240 --> 00:13:44,880
Speaker 2: think about everything that's going on in the background, and

300
00:13:44,960 --> 00:13:47,480
Speaker 2: even as we know some agents that would sit around

301
00:13:47,480 --> 00:13:50,040
Speaker 2: and drive with their in their car four copies of

302
00:13:50,040 --> 00:13:52,720
Speaker 2: a contract to go and distribute them out, whereas the

303
00:13:52,720 --> 00:13:54,960
Speaker 2: moment they sign it in the living room with the

304
00:13:55,040 --> 00:13:58,120
Speaker 2: vendor and the buyer, it instantly goes to the vendor,

305
00:13:58,200 --> 00:14:01,000
Speaker 2: the solicitor, the buyer, the buyers list, I'm back to

306
00:14:01,040 --> 00:14:03,440
Speaker 2: the office automatically, so they don't even have to go

307
00:14:03,520 --> 00:14:05,080
Speaker 2: back to the office at the end of a Saturday.

308
00:14:05,200 --> 00:14:09,600
Speaker 1: You mentioned Alex Phillipson, it's amazing many every morning he

309
00:14:09,960 --> 00:14:11,600
Speaker 1: sits out the front, he gets a cup of coffee.

310
00:14:11,720 --> 00:14:13,480
Speaker 1: That's what he has his coffee in the morning. And

311
00:14:13,480 --> 00:14:15,640
Speaker 1: if I and this coffee shop app is the first

312
00:14:15,679 --> 00:14:17,959
Speaker 1: coffee shop opened in the area. It's open to five am,

313
00:14:18,360 --> 00:14:20,680
Speaker 1: and Alex is usually one of the first people there.

314
00:14:20,760 --> 00:14:23,080
Speaker 1: He'd be there five to five, ten past five I am.

315
00:14:23,120 --> 00:14:25,440
Speaker 1: And he's got his fully decked suit, the whole thing.

316
00:14:25,640 --> 00:14:29,760
Speaker 1: Ye perfect. It looks like he's just walked off the catwalk.

317
00:14:30,480 --> 00:14:32,400
Speaker 1: He's sitting there, he's one of the first, and he's

318
00:14:32,400 --> 00:14:34,360
Speaker 1: straight on. He can see he's on his phone and

319
00:14:34,400 --> 00:14:38,840
Speaker 1: he's sending messages and he's reading stuff. And someone like

320
00:14:38,920 --> 00:14:43,000
Speaker 1: him doesn't have enough hours in the day to actually

321
00:14:43,000 --> 00:14:45,280
Speaker 1: be as productive as he is. I mean, when you

322
00:14:45,440 --> 00:14:48,520
Speaker 1: look at his numbers, if I work out how many

323
00:14:48,520 --> 00:14:51,200
Speaker 1: appointments he must have to have, how many visits he's

324
00:14:51,240 --> 00:14:54,200
Speaker 1: got to do, how much paperwork he must be involved,

325
00:14:54,240 --> 00:14:55,880
Speaker 1: And if I just look at it an eighty hour week,

326
00:14:56,080 --> 00:14:59,440
Speaker 1: he still couldn't achieve those sorts of numbers. Quantitatively, he

327
00:14:59,480 --> 00:15:01,600
Speaker 1: couldn't do it. So I've often thought to himself, there

328
00:15:01,680 --> 00:15:06,240
Speaker 1: must be something that he's doing that sorry, that helps

329
00:15:06,280 --> 00:15:07,760
Speaker 1: him do what he does that he doesn't.

330
00:15:07,520 --> 00:15:11,040
Speaker 2: Do yeah, yeah, and there's many tools that we're really

331
00:15:11,120 --> 00:15:14,440
Speaker 2: lucky inside of Domaine that contribute to that. There's a

332
00:15:14,480 --> 00:15:16,960
Speaker 2: thing called home pass that he also uses as well,

333
00:15:17,000 --> 00:15:19,120
Speaker 2: which is the moment you come to an omber for inspection.

334
00:15:19,720 --> 00:15:22,040
Speaker 2: If we already have your mobile number stored in terms

335
00:15:22,080 --> 00:15:24,560
Speaker 2: of let's say it's the PPD account, it will instantly

336
00:15:24,680 --> 00:15:27,720
Speaker 2: let them know or Alex in this example, that it's

337
00:15:27,800 --> 00:15:30,000
Speaker 2: Mark that's stepped into the property so that he can

338
00:15:30,040 --> 00:15:32,440
Speaker 2: greet you. You can have a personal experience. He's remembered you

339
00:15:32,480 --> 00:15:35,440
Speaker 2: by first name. It's the technology that's actually driving it

340
00:15:35,480 --> 00:15:38,040
Speaker 2: and actually enforcing that's this is the person that they've

341
00:15:38,080 --> 00:15:40,040
Speaker 2: already been through it, as well as tell them what

342
00:15:40,080 --> 00:15:42,600
Speaker 2: other properties they've been through, so you start to get

343
00:15:42,600 --> 00:15:45,120
Speaker 2: a better understanding of who that person is, what they're

344
00:15:45,120 --> 00:15:47,680
Speaker 2: actually looking for based on some of other things have

345
00:15:47,760 --> 00:15:50,480
Speaker 2: gone and inspected as well. The tricky part to what

346
00:15:50,520 --> 00:15:52,960
Speaker 2: you're talking about before is we sit down with our

347
00:15:53,000 --> 00:15:56,720
Speaker 2: product and tech teams and generally, if it's linear or

348
00:15:56,760 --> 00:15:59,400
Speaker 2: if it can be explained, it can be built. The

349
00:15:59,480 --> 00:16:01,760
Speaker 2: hard part with real estate is a lot of it

350
00:16:01,800 --> 00:16:05,720
Speaker 2: is people, and so you introduced into the process an

351
00:16:05,760 --> 00:16:08,400
Speaker 2: angry husband or wife is going through a divorce and

352
00:16:08,440 --> 00:16:10,800
Speaker 2: how you actually automate that part of the process. The

353
00:16:10,840 --> 00:16:12,520
Speaker 2: rout is you're not going to be able to And

354
00:16:12,560 --> 00:16:15,080
Speaker 2: that's why you think that real estate agents will always

355
00:16:15,080 --> 00:16:16,600
Speaker 2: have a role in the transaction as well.

356
00:16:17,480 --> 00:16:19,840
Speaker 1: That's a that's a tough one to navigate that one. Yeah, Okay,

357
00:16:20,080 --> 00:16:22,160
Speaker 1: tell me how are we going. How's the problem? I

358
00:16:22,240 --> 00:16:23,720
Speaker 1: going like, give us a bit of few insights, like

359
00:16:26,560 --> 00:16:29,920
Speaker 1: what's hot, what's not? You know, what's fallen off, what's

360
00:16:30,200 --> 00:16:30,640
Speaker 1: kicking on?

361
00:16:31,080 --> 00:16:34,640
Speaker 2: Yeah, I think we've been pretty interesting, a pretty interesting

362
00:16:34,680 --> 00:16:37,040
Speaker 2: time over the last few years. You look at COVID,

363
00:16:37,120 --> 00:16:39,480
Speaker 2: and COVID kind of threw it out of what was

364
00:16:39,520 --> 00:16:42,280
Speaker 2: typically we had seasonality. Yeah, of a spring, it would

365
00:16:42,280 --> 00:16:44,800
Speaker 2: be absolutely pumping in terms of listings, Wintil will be

366
00:16:44,840 --> 00:16:48,040
Speaker 2: a little bit quieter. Actually, through COVID, we've seen that

367
00:16:48,440 --> 00:16:52,240
Speaker 2: there wasn't a lot of fluctuational listing volumes. It actually charged.

368
00:16:52,280 --> 00:16:54,240
Speaker 2: It was obviously a good market for a lot of people,

369
00:16:54,280 --> 00:16:56,000
Speaker 2: and you've seen some suburbs.

370
00:16:55,480 --> 00:16:56,480
Speaker 1: Going for vendors.

371
00:16:56,480 --> 00:16:58,840
Speaker 2: Good for vendors, I should say, yeah, that's true, going

372
00:16:58,920 --> 00:17:01,400
Speaker 2: up thirty forty percent. You got on the other side

373
00:17:01,440 --> 00:17:03,200
Speaker 2: of that, you see the interest rates start to go

374
00:17:03,360 --> 00:17:05,480
Speaker 2: up as well. And we're starting to see some of

375
00:17:05,520 --> 00:17:08,680
Speaker 2: those suburbs, particularly regional areas that have decreased now by

376
00:17:08,840 --> 00:17:12,080
Speaker 2: thirty percent, might still be up fifty percent gross now

377
00:17:12,119 --> 00:17:14,159
Speaker 2: back down to the net up of twenty percent in

378
00:17:14,160 --> 00:17:16,960
Speaker 2: some areas, but they've certainly come off in some of

379
00:17:17,000 --> 00:17:21,040
Speaker 2: those outer regional areas where unfortunately the return to work

380
00:17:21,080 --> 00:17:23,240
Speaker 2: policies is starting seeing people we might have moved to

381
00:17:23,280 --> 00:17:26,000
Speaker 2: a regional center having to come back into the cities

382
00:17:26,040 --> 00:17:29,000
Speaker 2: as well. But the interesting part that we have seen,

383
00:17:29,040 --> 00:17:31,119
Speaker 2: I'll give you some data through the Real Time Agent

384
00:17:31,160 --> 00:17:37,000
Speaker 2: platform is so just for clarity, real Time Age has

385
00:17:37,040 --> 00:17:40,359
Speaker 2: three products. One is the digital authority product, one is

386
00:17:40,400 --> 00:17:44,199
Speaker 2: Big Tracker. One is digital contracts. So digital authorities is

387
00:17:44,200 --> 00:17:47,240
Speaker 2: when the vendor and the agent is signing that contract

388
00:17:47,240 --> 00:17:50,200
Speaker 2: in the living room, and that's our best leading indicator

389
00:17:50,200 --> 00:17:52,800
Speaker 2: of what's going to happen in probably that next month

390
00:17:52,920 --> 00:17:55,520
Speaker 2: to two months, what's going to list and what the

391
00:17:55,560 --> 00:17:57,600
Speaker 2: listing volumes are going to look like. So as an

392
00:17:57,680 --> 00:18:03,160
Speaker 2: example for you, September July of last year versus this year,

393
00:18:03,160 --> 00:18:07,760
Speaker 2: it's twenty two, twenty two, Yeah, twenty three July of

394
00:18:08,320 --> 00:18:12,280
Speaker 2: twenty twenty three versus July twenty twenty four, we're up

395
00:18:12,359 --> 00:18:15,320
Speaker 2: eighteen percent in terms of the number of authorities that

396
00:18:15,320 --> 00:18:15,879
Speaker 2: were signed.

397
00:18:15,960 --> 00:18:18,439
Speaker 1: Is that a significant number given the spring? Is that

398
00:18:18,480 --> 00:18:20,879
Speaker 1: a significant number on a seasonal basis basis?

399
00:18:20,960 --> 00:18:23,280
Speaker 2: Yeah, it is. And then the second component that I

400
00:18:23,359 --> 00:18:25,800
Speaker 2: give to you is that the appraisal numbers. So there's

401
00:18:25,800 --> 00:18:28,280
Speaker 2: a product that we have which is the digital CMA

402
00:18:28,400 --> 00:18:32,320
Speaker 2: or Digital Comparable market Analysis, which is before that agent

403
00:18:32,359 --> 00:18:34,320
Speaker 2: comes in your living room and actually tells you what

404
00:18:34,359 --> 00:18:36,640
Speaker 2: your house is worth, they're doing that in a platform

405
00:18:36,720 --> 00:18:39,040
Speaker 2: that we own, and what we've seen is a thirteen

406
00:18:39,119 --> 00:18:42,720
Speaker 2: percent uplift in the number of appraisals from that same date.

407
00:18:42,760 --> 00:18:45,320
Speaker 2: So that twenty July twenty twenty three to July of

408
00:18:45,359 --> 00:18:48,639
Speaker 2: twenty twenty four number. What that tells us is that

409
00:18:49,359 --> 00:18:51,679
Speaker 2: actually spring started a lot earlier than what a people

410
00:18:51,680 --> 00:18:54,359
Speaker 2: thought in terms of listing volumes. What we're seeing in

411
00:18:54,400 --> 00:18:57,919
Speaker 2: the subsequent months is August was up about thirteen percent

412
00:18:57,960 --> 00:19:00,960
Speaker 2: in terms of the number of authorities signed, which is

413
00:19:01,040 --> 00:19:03,560
Speaker 2: telling us that Spring is not just this little spike.

414
00:19:03,920 --> 00:19:06,000
Speaker 2: And the thing that we're all worried about is we've

415
00:19:06,040 --> 00:19:08,199
Speaker 2: got interest rate rises that have gone through over the

416
00:19:08,240 --> 00:19:11,159
Speaker 2: last two years. Prices are they going to start to

417
00:19:11,160 --> 00:19:13,639
Speaker 2: come off with more stock coming into the market and

418
00:19:13,680 --> 00:19:16,959
Speaker 2: therefore vendors or vendors who are sitting on that fence,

419
00:19:17,080 --> 00:19:19,159
Speaker 2: whether are they going to consider still coming onto the

420
00:19:19,200 --> 00:19:22,040
Speaker 2: market to see those prices come off. We're actually seeing

421
00:19:22,080 --> 00:19:25,080
Speaker 2: a pretty steady growth in terms of spring is continuing

422
00:19:25,119 --> 00:19:28,040
Speaker 2: to go and we're seeing authorities still getting signed that

423
00:19:28,080 --> 00:19:30,320
Speaker 2: are getting booked for you know, first week of December

424
00:19:30,359 --> 00:19:31,280
Speaker 2: for auctions as well.

425
00:19:31,359 --> 00:19:33,080
Speaker 1: So weather means is there's more probably in the market

426
00:19:33,119 --> 00:19:38,000
Speaker 1: for sale, but it's not affecting price at the moment. Yeah,

427
00:19:38,160 --> 00:19:39,640
Speaker 1: do you expect it will affect price?

428
00:19:39,800 --> 00:19:42,120
Speaker 2: Not sure. I don't have a crystal ball on that one.

429
00:19:42,200 --> 00:19:43,560
Speaker 2: And when you're start seeing.

430
00:19:43,640 --> 00:19:48,320
Speaker 1: Next calendar, next Calundy years authority to sell, when do

431
00:19:48,320 --> 00:19:50,440
Speaker 1: you start seeing them signing like January February.

432
00:19:50,080 --> 00:19:54,000
Speaker 2: Where you usually see them, So they'll sign November for

433
00:19:54,119 --> 00:19:57,159
Speaker 2: a February right auction. So we'll start to see that

434
00:19:57,240 --> 00:20:00,119
Speaker 2: data come through again in November. And that's a lot

435
00:20:00,119 --> 00:20:03,199
Speaker 2: of the really great agents again, they're very organized and

436
00:20:03,200 --> 00:20:05,800
Speaker 2: diligent with their time. They're booking out February and even

437
00:20:05,840 --> 00:20:07,400
Speaker 2: into march sometimes.

438
00:20:06,960 --> 00:20:09,040
Speaker 1: Space Yeah, yeah, advertising space.

439
00:20:09,400 --> 00:20:12,040
Speaker 2: To your point though, around prices and what's the leading

440
00:20:12,080 --> 00:20:14,919
Speaker 2: indicator of that is usually for inspection numbers and how

441
00:20:14,960 --> 00:20:18,080
Speaker 2: many on average coming through. So again we're fortunate with

442
00:20:18,080 --> 00:20:20,840
Speaker 2: a product that we've got called home Pass, where we've

443
00:20:20,840 --> 00:20:24,080
Speaker 2: seen last year as an average of thirty three people

444
00:20:24,119 --> 00:20:27,080
Speaker 2: through a campaign. So think about a campaign generally being

445
00:20:27,080 --> 00:20:29,960
Speaker 2: over four to five weeks with about an average of

446
00:20:30,000 --> 00:20:31,440
Speaker 2: thirty three people coming through.

447
00:20:31,600 --> 00:20:33,440
Speaker 1: In other words, coming in have a little bit joint Yeah.

448
00:20:33,240 --> 00:20:36,320
Speaker 2: Coming out of Look at the place this time this

449
00:20:36,440 --> 00:20:40,399
Speaker 2: year versus last year is twenty two.

450
00:20:39,960 --> 00:20:43,359
Speaker 1: So we've got less sort of indicates less buyers. Yeah,

451
00:20:43,359 --> 00:20:45,120
Speaker 1: but you've also told me there's more vendors.

452
00:20:45,240 --> 00:20:45,480
Speaker 2: Yeah.

453
00:20:45,680 --> 00:20:47,080
Speaker 1: Yeah, well there's more properties for sale.

454
00:20:47,119 --> 00:20:50,600
Speaker 2: More properties for sale. That means there's not as many

455
00:20:50,640 --> 00:20:53,280
Speaker 2: buyers in the market. And what an interesting starts across

456
00:20:53,280 --> 00:20:55,560
Speaker 2: the country. That's the whole cross the old country. Yeah,

457
00:20:55,840 --> 00:20:58,399
Speaker 2: it's really hard to look at like it really is

458
00:20:58,440 --> 00:21:01,760
Speaker 2: dependent on those suburbs and A grade properties versus being

459
00:21:01,840 --> 00:21:04,560
Speaker 2: C grade B. In C grade, you're definitely seeing those

460
00:21:04,600 --> 00:21:06,200
Speaker 2: prices are starting come off on them.

461
00:21:06,240 --> 00:21:09,080
Speaker 1: But by the allies told me that, but A grade still.

462
00:21:08,880 --> 00:21:11,720
Speaker 2: A grade to the bar. Everyone's scratching their heads is

463
00:21:11,760 --> 00:21:13,720
Speaker 2: to it continues to just go up.

464
00:21:14,440 --> 00:21:16,960
Speaker 1: That's interesting. So but by the way, not many people

465
00:21:17,000 --> 00:21:19,040
Speaker 1: in the A grade category. So I mean, if you're

466
00:21:19,040 --> 00:21:20,720
Speaker 1: looking at the bulk of people who are looking for

467
00:21:20,760 --> 00:21:24,399
Speaker 1: a bargain or looking for an affordable price, but the

468
00:21:24,440 --> 00:21:27,600
Speaker 1: A grade buyers aren't looking for affordability. They want the price,

469
00:21:28,520 --> 00:21:33,920
Speaker 1: whereas the everybody below that is looking for something that's affordable. Yep.

470
00:21:34,200 --> 00:21:36,520
Speaker 1: So that's sort of all as well, I think. I mean,

471
00:21:36,560 --> 00:21:39,199
Speaker 1: it's you know, things are starting to at least not

472
00:21:39,320 --> 00:21:41,720
Speaker 1: grow at the same rate they were growing out. It's

473
00:21:41,760 --> 00:21:45,320
Speaker 1: not sustainable. Twenty percent random and that stuff's not sustainable,

474
00:21:45,600 --> 00:21:46,520
Speaker 1: and we don't want to see that.

475
00:21:47,160 --> 00:21:50,280
Speaker 2: What is interesting as well is that you look at

476
00:21:50,280 --> 00:21:52,760
Speaker 2: the average number of transactions that occur across like the

477
00:21:52,800 --> 00:21:54,679
Speaker 2: last five years, which is it sits at about six

478
00:21:54,800 --> 00:21:58,679
Speaker 2: hundred thousand a year, give or take five percent. Well,

479
00:21:58,720 --> 00:22:02,760
Speaker 2: what's interesting though, is building more homes population.

480
00:22:02,800 --> 00:22:04,760
Speaker 1: So is that six hundred thousand off your data or

481
00:22:04,760 --> 00:22:05,960
Speaker 1: six hundred thosand a cross.

482
00:22:05,720 --> 00:22:07,840
Speaker 2: The board, So it's not domain data, it's actually just

483
00:22:08,080 --> 00:22:11,320
Speaker 2: national call whatever someone like, Yeah, everyone kind of has

484
00:22:11,359 --> 00:22:14,639
Speaker 2: their own data source, but yep, and effectively it hasn't

485
00:22:14,680 --> 00:22:17,680
Speaker 2: gone up that much. Even though population continues to go up,

486
00:22:17,720 --> 00:22:20,679
Speaker 2: migration goes up, we're building more homes, but actually that

487
00:22:20,760 --> 00:22:24,119
Speaker 2: number stays relatively flat. The interesting other number is that

488
00:22:24,119 --> 00:22:26,640
Speaker 2: there's about one hundred and fifty thousand people a month

489
00:22:26,720 --> 00:22:29,520
Speaker 2: that are actively looking for a home to buy in

490
00:22:29,560 --> 00:22:32,159
Speaker 2: that given month, and only about fifty thousand.

491
00:22:31,920 --> 00:22:33,040
Speaker 1: Of them buy right.

492
00:22:33,080 --> 00:22:37,040
Speaker 2: See, your success rate is about thirty percent wow in market,

493
00:22:37,080 --> 00:22:39,160
Speaker 2: which is what you're seeing with that Back to your

494
00:22:39,200 --> 00:22:42,959
Speaker 2: earlier comment around affordability and what's going on in the market,

495
00:22:42,960 --> 00:22:44,840
Speaker 2: you're seeing a lot more people that are priced out

496
00:22:44,840 --> 00:22:47,679
Speaker 2: of particular suburbs searching for that thing, but harder to

497
00:22:47,760 --> 00:22:48,800
Speaker 2: even find at the moment.

498
00:22:48,840 --> 00:22:51,560
Speaker 1: As well, It's interesting because in our business we've found

499
00:22:51,560 --> 00:22:55,240
Speaker 1: a lot more pre approvals than we've ever had before,

500
00:22:55,359 --> 00:22:58,600
Speaker 1: where people gearing up to go to auction, but the

501
00:22:58,720 --> 00:23:02,560
Speaker 1: dropout rate of approvals is like skyrocketed. So if we

502
00:23:02,600 --> 00:23:04,960
Speaker 1: do one hundred preapprovals for the month, just way a

503
00:23:05,000 --> 00:23:06,919
Speaker 1: way of example, we do many more, but left so

504
00:23:06,920 --> 00:23:09,320
Speaker 1: we do one hundred and if we ordinarily we get

505
00:23:09,359 --> 00:23:13,400
Speaker 1: fifty percent of those would buy at the moment, we're down,

506
00:23:13,480 --> 00:23:15,359
Speaker 1: like down to about twenty two percent.

507
00:23:15,600 --> 00:23:17,680
Speaker 2: Yeah, well it's pretty close to that number. If you

508
00:23:17,720 --> 00:23:19,840
Speaker 2: think about it at a national level, then that one hundred

509
00:23:19,840 --> 00:23:23,240
Speaker 2: and fifty thousand versus those fifty thousand household it's about right. Yeah.

510
00:23:23,280 --> 00:23:26,720
Speaker 1: So in otherwise, people are getting either don't have to

511
00:23:27,000 --> 00:23:29,159
Speaker 1: don't have enough borrowing capacity because they all borrow to

512
00:23:29,200 --> 00:23:31,520
Speaker 1: the mak. They all get approval to the max, but

513
00:23:31,600 --> 00:23:33,600
Speaker 1: they can't get enough approved to buy the property that

514
00:23:33,640 --> 00:23:35,520
Speaker 1: they're trying to buy. Yeah, so they drop off.

515
00:23:35,680 --> 00:23:35,840
Speaker 2: Yea.

516
00:23:36,080 --> 00:23:39,600
Speaker 1: And what's interesting about it is very rarely do they

517
00:23:39,640 --> 00:23:42,760
Speaker 1: come back for another pre approval for six months. They

518
00:23:42,800 --> 00:23:45,080
Speaker 1: get a bit deflated and they just don't know what

519
00:23:45,119 --> 00:23:47,400
Speaker 1: they do, but they just sort of, well, they knock

520
00:23:47,400 --> 00:23:48,320
Speaker 1: around for a bit. Yeah.

521
00:23:49,200 --> 00:23:52,080
Speaker 2: I heard out of another large brokerage business that seventy

522
00:23:52,119 --> 00:23:54,480
Speaker 2: percent of people are getting a pre approval don't buy.

523
00:23:54,720 --> 00:23:57,360
Speaker 1: And they're well, that's the same as me. I'm high,

524
00:23:57,400 --> 00:23:58,639
Speaker 1: I'm sort of seventy eight percent.

525
00:23:58,680 --> 00:24:01,560
Speaker 2: So yeah, yeah, it's it's an interesting market at the moment.

526
00:24:01,640 --> 00:24:03,400
Speaker 2: The other thing that we're hearing a lot of is

527
00:24:03,920 --> 00:24:06,040
Speaker 2: the rise of the rent vestor the rise of the

528
00:24:06,040 --> 00:24:08,760
Speaker 2: person who might be renting in Bellevue Hill, but is

529
00:24:08,800 --> 00:24:12,440
Speaker 2: buying a property as an investment property out and Reachionalgnensland

530
00:24:12,560 --> 00:24:15,600
Speaker 2: or whatever it might be, to realize that, well, I

531
00:24:15,680 --> 00:24:18,320
Speaker 2: love living where I am, but the affordability says that

532
00:24:18,359 --> 00:24:20,639
Speaker 2: I can't buy here, So I need to invest the

533
00:24:20,640 --> 00:24:22,640
Speaker 2: money in buying into areas that are going to grow.

534
00:24:22,640 --> 00:24:24,120
Speaker 1: Or those people are smart, they've got to get into

535
00:24:24,160 --> 00:24:26,600
Speaker 1: the market. You know that. That's anything else you can

536
00:24:26,600 --> 00:24:28,600
Speaker 1: share with those leg in stats like we love a stat.

537
00:24:28,640 --> 00:24:29,200
Speaker 1: I love a stat.

538
00:24:29,560 --> 00:24:31,159
Speaker 2: I think that they're all the stats have got for

539
00:24:31,280 --> 00:24:31,960
Speaker 2: you so far.

540
00:24:32,160 --> 00:24:34,760
Speaker 1: Okay, Well, if I was asked you to make a

541
00:24:34,760 --> 00:24:41,520
Speaker 1: fearless prediction in terms of you guys must have economists internally,

542
00:24:41,560 --> 00:24:44,120
Speaker 1: So what are you guys thinking about the interestry environment?

543
00:24:44,200 --> 00:24:46,000
Speaker 1: What do you think is going to be the turning point,

544
00:24:46,280 --> 00:24:48,200
Speaker 1: like in terms of dates or times or months or

545
00:24:48,280 --> 00:24:50,800
Speaker 1: part of the year for industry reductions.

546
00:24:51,400 --> 00:24:53,480
Speaker 2: We have our economists come and talk a lot of

547
00:24:53,480 --> 00:24:56,320
Speaker 2: our events at the moment as well, and they have

548
00:24:56,480 --> 00:24:58,520
Speaker 2: shared with us what all the banks are looking at.

549
00:24:58,560 --> 00:24:59,919
Speaker 2: And you would know it far better than me, Mar.

550
00:25:00,240 --> 00:25:04,680
Speaker 2: But there's various dates that people were putting out there interesting.

551
00:25:04,200 --> 00:25:07,520
Speaker 1: This year, this calendar, all the rest aren't.

552
00:25:07,680 --> 00:25:10,280
Speaker 2: Yeah, So where I think it's at is there is

553
00:25:10,320 --> 00:25:12,440
Speaker 2: a lot of noise that's coming out of the US

554
00:25:12,480 --> 00:25:14,840
Speaker 2: and they're trying there's economists coming out of there saying

555
00:25:14,880 --> 00:25:16,920
Speaker 2: that what it's going to have an impact on our market,

556
00:25:17,200 --> 00:25:19,240
Speaker 2: I'm not quite sure it's the same. You look over

557
00:25:19,280 --> 00:25:21,680
Speaker 2: there and they've got three percent fixed interest rates over

558
00:25:21,760 --> 00:25:25,399
Speaker 2: thirty years. We're a very different market here. Where I

559
00:25:25,480 --> 00:25:28,240
Speaker 2: think it's going to get to is probably early to

560
00:25:28,359 --> 00:25:32,160
Speaker 2: middle of next year. But provided we see that consumer

561
00:25:32,200 --> 00:25:34,760
Speaker 2: confidence is at an all time wow, but people still

562
00:25:34,800 --> 00:25:36,800
Speaker 2: got quite a lot of savings, and what it actually

563
00:25:36,800 --> 00:25:40,280
Speaker 2: does the inflation and start to see what actually comes through.

564
00:25:40,320 --> 00:25:42,919
Speaker 2: So at the moment starting to see the RBA aren't

565
00:25:42,960 --> 00:25:45,120
Speaker 2: really giving away a lot in terms of whether they're

566
00:25:45,119 --> 00:25:46,959
Speaker 2: going to put it down or they're going to sit

567
00:25:47,000 --> 00:25:48,800
Speaker 2: and wait a lot longer. I think that they had

568
00:25:49,640 --> 00:25:52,520
Speaker 2: an issue originally where they've probably made some predicaments before

569
00:25:52,560 --> 00:25:54,800
Speaker 2: they went and made a few moves that people made

570
00:25:54,920 --> 00:25:57,959
Speaker 2: assumptions on them and did stuff on So I'd say

571
00:25:57,960 --> 00:25:59,560
Speaker 2: they're very cautious as to what they're going to do.

572
00:25:59,600 --> 00:26:02,760
Speaker 2: But pobaarly February is I've got a slab with a

573
00:26:02,800 --> 00:26:05,240
Speaker 2: couple of mates where I'm predicting it'll come in at

574
00:26:05,480 --> 00:26:07,160
Speaker 2: for any interest straight cut.

575
00:26:07,000 --> 00:26:09,880
Speaker 1: Well, I definitely think we're we're going to be looking

576
00:26:09,880 --> 00:26:12,680
Speaker 1: sometime around March around that territory. Anyway, when we get

577
00:26:12,720 --> 00:26:15,280
Speaker 1: the numbers out that come out and the December numbers

578
00:26:15,320 --> 00:26:17,480
Speaker 1: that come out the end of January, I'm expecting a

579
00:26:17,520 --> 00:26:19,520
Speaker 1: bit of a slump, although I did see the retail

580
00:26:19,880 --> 00:26:22,720
Speaker 1: numbers were like pretty high this week. I think it

581
00:26:22,760 --> 00:26:24,720
Speaker 1: was this week that came out much higher than I expected,

582
00:26:25,920 --> 00:26:28,560
Speaker 1: which is a surprise. It's first increase in retail sales

583
00:26:28,600 --> 00:26:32,280
Speaker 1: for I don't know how many quarters or really long period.

584
00:26:32,400 --> 00:26:37,080
Speaker 1: So unless that's got something to do with Father's Day

585
00:26:37,320 --> 00:26:39,760
Speaker 1: or some sort of odd aberration, it was only a

586
00:26:39,760 --> 00:26:43,560
Speaker 1: monthly number, so I'll wait and see, but I expect

587
00:26:43,560 --> 00:26:45,280
Speaker 1: to see something remember at the same time, So I'm

588
00:26:45,280 --> 00:26:46,879
Speaker 1: not gonna have a slab. I'm not gonna have a slab.

589
00:26:47,000 --> 00:26:49,520
Speaker 1: I'm not gonna have a bet with you anyway. But Angus,

590
00:26:49,560 --> 00:26:51,400
Speaker 1: thanks very much for coming to mate ingus Ferguson from

591
00:26:51,440 --> 00:26:53,520
Speaker 1: domain Thanks Mark Pleasure, Welcome