Christmas Parties: The Estate Agent Guide

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You can tell Christmas is coming in three key ways when you’re an estate agent.

One is when your clients decide to wait ’til next year to sell their home,  feeling they’ve missed the boat in terms of an auction campaign or harnessing the ‘spring buzz’. The second way you can sense Christmas is nigh is the sight of Mr Kipling mince pies at Woolies. And the last is the arrival of the annual Christmas party invitation – which is something either met with great excitement, or gnawing dread. In today’s Hometruths Melbourne blog, we offer a Christmas Party guide for principals and estate agents – a thorough what-to-do and what-not-to-do guide that will make for happier celebrations of the year that was. More Nutbush, less Krampus.

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Are you a Principal? Congratulations on making it through another year. It’s tough out there for a boss, #amirite? You’ve probably contended with an array of events in 2016 including but not limited to: legal skirmishes, staff turnover that made you panic, tax bills that result in emergency accountant visits and enforced attendance at your local real estate institute for CPD points. It’s hard to tell which of these is the worst, innit? In any case – you’re on the home stretch and it’s time to reward your team for the many wins you’ve enjoyed. Here’s how to do it:

  • Forget about mini-buses. Anywhere.

It’s true that a winery day out sounds initially appealing, especially if you rather enjoy the odd tipple. But being stuck on a bus hours outside of your capital city with Jerry the BDM vomiting pulled pork burgers and pilsner out the mini-bus window is a much less happy reality. Don’t make the Christmas party into something which must be borne through gritted teeth rather than enjoyed. Appreciate that not everyone in your team enjoys drinking, and take that into account when planning a stress-free and enjoyable day out together.

  • Don’t conflate team-building with celebration and reward.

You have 11 months of the year to do team-building. Christmas parties are not about that: they’re a reward that shows your appreciation as a business owner without making anyone feel put upon or pressured into an activity they don’t enjoy. Less abseiling and trust exercises, more ‘here’s a personal gift from me to you, what would you like for your entrée?’

  • Partners matter. Include them.

Estate agents often work six days a week. In order for an agent to succeed and make you money, they need the complicit support of their partner. The real estate widow is carrying the domestic workload and executing the emotional labour of a couple by themselves. They are as much a part of your success as your employee. Make sure they know they’re appreciated and included in Christmas celebrations and rewards. Let’s face it: a Christmas lunch or dinner with your team alone makes for pretty dull conversation. Throw partners into the mix, and you’ll have a diversity of relaxed conversation that’s (hopefully!) about anything other than the office. Don’t be cheap about this – scale your celebrations to a level that partners can be acknowledged and rewarded within.

  • Don’t be offended by difference.

Maybe you’re going ahead with a Christmas party at a winery. Or you’re taking the team out for a day of paintballing. Be open to the reality that not everyone in your business will want to participate. Not everyone drinks, travels in mini-buses well, or enjoys toting paintball guns in the bush. If you have a team member that would prefer to sit this event out, don’t make a big deal of it. Their fun isn’t your fun. That’s OK. Reward them privately in a way that they will appreciate, and your tolerance and thoughtfulness won’t go unnoticed.

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Are you an estate agent? Well done to you too, on making it (nearly) all the way to 2017! It’s time to enjoy and pat yourselves on the back for having being faced with alarming circumstances during 2016 including but not limited to: changes to quoting laws, dogs constantly jumping on you during listing presentations, forgetting open A-Frames on street corners, dealing with irate, threatening buyers during boardroom auctions and trying to meet your monthly KPIs. Holiday season is here, and our recommendations on best enjoying your team Christmas celebrations include:

  • Keep it nice. 

During your Christmas office party, you may very well enjoy a snifter or two of your favorite tipple. Sante! Relax and mellow out. But don’t let that sweet devil’s liquor loosen your tongue or allow you to behave in a randy, inappropriate fashion. You’re still in a professional setting, so calling people racist nicknames, bottom-pinching, or indulging in a disco-bikkie or two in the bathrooms really isn’t on. It’s easy to ruin a reputation. And it’s easy to bully other people when you’re in a position of power. Neither action is very spirit of the season, really.

  • Give your boss a gift.

Appreciation, innit. Goes a long way.

  • Make an effort.

Some of us like Christmas parties more than others. If there’s an activity that makes you really uncomfortable and you don’t want to participate, speak frankly to your boss about this. If they’re not a d*ck, they’ll respect your considered response. But if you’re just generally a Christmas party hater, take off your Grinch hat. Make it a more enjoyable a day by offering to organise games or a focus for the party. Maybe not Cards Against Humanity, but something that will elicit a giggle from everyone. Or indulge in a new outfit for the day, and think of ways to engage with your colleagues outside of your daily roles. Chat to Jacinta’s husband about his favorite books. Find out if Gregg is still collecting 1970’s football cards. There’s more to your colleagues than meets the eye, I’ll bet.

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Photography: Breeana Dunbar.

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Cooked Their Own Goose: Vendor Greed

Buyers are saying no. And with good reason, too. Vendor greed has killed the goose that laid the golden egg.

The property cycle is the same every time. Interest rates go down (or go up, as a warning shot over the parapets) and hopeful property buyers spring into action. They begin buying property under competitive conditions, and prices crawl upwards. Some neighbourhoods surge ahead in value – shocking their communities with a steady increase in property prices. Cue media outlets and newspapers opining on Melbourne’s property market balloon, resulting in Saturday night news featurettes on extraordinary auction results and the impossibility of first home buyers securing property. Some vendors make well above their reserves, elated and excited at their windfall.

Buyers keep buying property despite all this ‘balloon market’ talk, choosing to invest their dollars in property, confident that property prices aren’t going down anytime soon in desirable, urban areas as our population keeps growing. Clearance rates are high, and vendor’s appetites to sell are whetted. That’s where it all starts to go wrong.

It doesn’t go bad because of a balloon or buyers ceasing to see the value of property investment. It goes bad because of vendor greed. Vendors Gone Wild, if you will. The vendors just a few weeks earlier in the same property cycle were setting reasonable market reserves which left room for buyers to compete. It’s only when a vendor is listening to their agent’s feedback about quote range (or advice on why they shouldn’t display price) and setting a reserve buyers see as reasonable that competition occurs, properties sell, clearance rates remain high and prices increase naturally and incrementally. The vendors who weren’t greedy – weren’t trying to abuse the market’s confidence in property investment – were those prepared to sell at a fair price.

It’s the vendors who have more recently come onto the market – those who believe the media news that prices are outta sight and going north – that have cooked the market’s goose. They always appear in the property market cycle at its greediest  pinnacle. (Although they’re by no means the only kind of vendors attempting to sell their properties before Christmas.) These vendors don’t amend their expectations of price despite agent education and market feedback because they were never sellers in the first place. They’d sell for an extraordinary result, but their motivation to meet the market is low. The result of an out of control vendor are high pass-in rates, lower attendance at open for inspections and a general unwillingness to participate from buyers.

Buyers be like #HellNo and #OhNoYouDiint

This is as it should be: it’s a sign that the market is discerning and aware. Buyers are willing to bid to buy, but they won’t tolerate greed and an inability to compete openly.

If you’re a vendor who has not sold and you’re part of the current property cycle, ask yourself the hard question: are you really selling or are you just trying to fool the market into paying more than your property’s worth? Listen to your agent’s feedback and take action by meeting the market. If you are selling to buy, be logical about pricing and don’t get hung up on achieving a figure based on nothing but hope. Waiting for your ‘perfect price’ could mean watching the market cycle for several years. In that time, the property you’re hoping to buy will also go up in value  – and will be just as unaffordable as it is today. It’s critical (in most cases) to buy and sell in the same market, when values are balanced. Waiting won’t change the inherent value of properties if you’re selling to buy. Word to the wise? Don’t cook your own goose!

After all, if Tay-Tay and Yeezy can hug it out, so can buyers and vendors.