Top Block auctioneer reveals biggest real estate mistakes

At the end of another drama-filled season of The Block, the hit TV show’s No.1 auctioneer Tom Panos reveals his top seven mistakes buyers and sellers desperately need to avoid.

When it comes to real estate – buying or selling – and many of us are doing both around the same time – it can be a jungle out there, especially in the current market hit by rate hikes, supply challenges and varying demand.

Like any journey, you have to know how to navigate your way through the rough waters and into the smooth.

When it comes to property, top auctioneer from The Block Tom Panos reveales are the seven crucial real estate mistakes you need to take note of and need to avoid.

1. BUYING BEFORE AUCTION

When an agent sells a property one or two days before the auction, it is normally a sign that there were not many buyers interested in the property or one buyer was strong, and the others were weak. An agent doesn’t want you to show up on auction day as a buyer having no competitors.

Agents don’t want auctions with only one bidder. Picture: NCA NewsWire / David Swift

Often the agent will contact you prior to auction and say the owners are very keen to do a deal prior to auction. This is a sign you are the best buyer.

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2. NO SALE NO CHARGE

Some agents will suggest the marketing is free just to get your business as a vendor. Be very careful, as free marketing is often a substandard campaign that is used as an ethical bribe to get the listing.

Make sure you ask an agent in detail what the campaign entails. What is the size and frequency of the advertisements and what is the exact dollars in cost of the marketing. Bottom line is you need attract as many buyers as possible, not save as much marketing as you can!

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3. THE FAKE BUYER

Often as a buyer, you may make an offer on a property and the agents instant response to get you up in price will say they have already received a higher offer. This may or may not be correct.

At least with an auction you can see and hear your buyer competition but for sales, this is less clear. Don’t let an agent influence your offer, do your research and have a number that you’re prepared to walk away from.

Tom Panos in his role as auctioneer. Picture: John Appleyard

4. NEVER LESS THAN A DOZEN PROPERTIES

Never buy the first property you have seen in a new suburb that you previously were not looking at.

I often see a buyer who looks in one area and gets frustrated by missing out all the time and then goes to another suburb, sees a property and falls in love with it and thinks it’s good value because they compare it to another area only to find out months later that paid well over market value. Make it your business to see at least a dozen properties in a suburb before you buy.

5. DON'T LIST WITH THE AGENT WHO GIVES YOU AN INFLATED NUMBER

Beware of the overpricing agent.

The one that tells you everything you want to hear. The one that over-prices your home. The one that tells you they have a buyer that will buy the home and they just need you to sign an authority. Be very clear, the market sets the price. At best an agent can influence the market. It’s the process and not the promise of a price that will get you top dollar plus always remember that agents don’t have exclusive rights over buyers. All the agents have is access to buyers.

6. SIZE DOES NOT ALWAYS MATTER

Bigger, is always not better.

Sometimes an agent that is very dominant and has a lot of profile in an area just doesn’t have the capacity to deal with all the listings they have. They will cut corners or they will outsource or delegate the work to a junior with little experience.

Often big long-term agents in an area feel it is an entitlement to get your business where newer agents who are still building their real estate career have a higher work ethic and energy levels. Make sure the agent you list with will be at all the open for inspections and be handling all the buyer negotiations, and be signing off on all the marketing.

Get it in writing and make sure the agent you hire is that agent you get!

Auctioneer Tom Panos with the winning team of Oz and Omar on the 2022 season of The Block. NSW real estate. Picture: Supplied.

7. DON’T GO WITH THE CHEAPEST AGENT

The cheap smiling assassin agent can cost you money.

Some agents have really nothing else to offer but a low fee. No matter how tempting it is to pick the agent who is one per cent cheaper than other agents you have interviewed when selling, be mindful, that the cheapest agent and the best agent is generally not the same agent. Whilst one agent might be one per cent cheaper, you need to remember if the agent is 10 per cent better, you are 9 per cent better off going with the more expensive agent.

It’s what is left in your pocket that really matters not what you pay as a fee.

* Tom Panos is an auctioneer, real estate coach and trainer with over 30 years experience in the industry.