As buyer advocates, we dealt with many auctioneers and agents in 2008. To wrap up the year, we’ve put together a list of our Top 10 Agents, Top 10 Auctioneers and Top ‘Up and Comers’ for your information.

We buy one to three properties per week, assess and visit dozens of million-dollar-plus homes a month and rate thousands of homes every year. We meet a lot of selling agents and see a lot of auctioneers plying their trade. Most are good, and some are very good. The second most common question we get asked at parties or at talks or on the phone is “who is the best selling agent?” Truth is, there is no carte blanche best agent. One agent may be great at selling period homes but not that good at selling little flats. One agent may be brilliant in an “up” market but less than brilliant in a “down” market or vice versa. Another agent may have the best record but just doesn’t gel with the seller. Some potential quality selling agents just work in the wrong company, and so on.

Please read the continuation of this article below, for now let's skip right into the awards for 2008.

The "Top 10 Selling Agents" We Witnessed in 2008

2008 James Home Ratings Selling Agent Ethics Award: we thought Jenny Dwyer’s overall ethical performance, highlighted by her selfless decision to help a couple not sell their home and not make a poor decision by buying an inferior home (which resulted in no commission or future prospects from these people for her), was the best agent news story we witnessed this year.

2008 Best Auctioneering Performance: we thought Iain Carmichael’s selling of an Armadale property later in the year was gold and the standout auctioneer performance we witnessed in 2008. He used vendor bids, charm and guile and post-auction negotiations to represent his client very well.

2008 Most Improved Auctioneer: John Clarkson of Hocking Stuart, Brighton.

2008 Most Entertaining Auctioneer: Andrew Macmillan of Bennison Mackinnon and he is also effective.

2008 Best “Up and Comer” Selling Agents: the best young agents we saw around the traps in 2008 were Marcus Chiminello of Marshall White and Kaine Lanyon of Bennison Mackinnon.

2008 Best Up and Coming Auctioneer: that we witnessed this year was the very professional Jeremy Desmier of Fletchers.

2008 Best and Fairest Agency: The agency we felt added the most to our industry for buyers and sellers. Marshall White led by James Connell and John Bongiorno.

2008 Most Improved Agency: Abercrombys, especially mid-year when they were really giving the bigger agencies a run for their money. Tim and Jock and their co-workers were on the ball on- and off-market.

2008 Best Selling Agent Initiative That Helps Buyers: The Jellis Craig Comparable Sold System on their website and at their open for inspections. Not perfect for buyers, but it’s a lot better than other agents’ or agents with nothing.

2008 Raspberry: The selling agents who persisted with old methods in a new market, together with the selling agents who continued to miss the point that systems that burn buyers for short-term gain will ultimately burn their future selling clients’ prices in any market. Sellers should pay some attention to how an agent has dealt with past buyers. Basic respect and decency pays dividends.

Each Top 10 recipient was asked to write 100 words on the market and where they see it going in 2009.
Like Mike Sheahan’s Top 50 footballers, you will have disagreements – fair enough.
We never receive money from any selling agents at any time. These are our genuine thoughts.

10 of the BEST in 2008: Selling Agents

(in no particular order):

Michael Gibson – Kay and Burton – Toorak

James Home Ratings Comments on Michael
Any selling agent, or, for that matter, buying agent could learn a lot from Michael Gibson, who is one of the most disciplined and measured agents we have dealt with. Michael is good with buyers and that may or may not be in their best interests. Like a good comedian who gets laughs without a foul mouth, Michael gets strong results without an obvious lie. His work is evidenced through a number of on- and off-market $5 million-plus sales, even in the past few months.

Mike’s Comments on the Market in 2008-09
2008 has been a particularly interesting year. In times like these, we notice that people who don’t need to sell tend to just sit tight and wait for stability to return, hence the shortage of quality properties. Moving forward into 2009, if the equity market and overall global economy stabilises, then you will certainly see greater activity. If interest rates continue to fall as anticipated, then you will start to see greater confidence returning to the marketplace, especially in times where funding is at historical lows.

 

Jenny Dwyer – Hocking Stuart – Bayside

James Home Ratings Comments on Jenny
If selling agents needed an all round poster boy/girl, then Jenny Dwyer should be it. She is a genuine caring person and proves that nice guys or girls don’t finish last and can survive in real estate. Bayside has been in a property recession for most of the year and Jenny has kept her cool and calm demeanour. She allows a buyer and seller to make difficult decisions in a relatively unpressured manner and is a very effective ‘one on one’ negotiator with buyers. You need to remember this if you are a buyer. Jenny has got some great result for sellers, including many of the top sales in Hampton and Sandringham in 2008.

Jenny’s Comments on the Market in 2008-09
The year ahead should see prices remain relatively stable, which is consistent with results achieved during the latter part of 2008. Both vendors and real estate agents will need to be realistic when appraising property, and buyers will need to act decisively to secure their preferred property if the home has been listed at a genuine price from the outset.
Despite the current economic climate, the coveted bayside area continues to be a strong drawcard for many buyers. The area’s continuing popularity, coupled with Melbourne’s ever-growing population and the strong infrastructure of these suburbs, are compelling reasons to continue to invest in property.

 

Robin Parker - RT Edgar - Bayside

James Home Ratings Comments on Robin
Robin is very good in a private sale situation especially where there is only one buyer, obtaining optimum results for his clients. He knows how to read buyers very well and is frank with information. An excellent Brighton and Hampton selling agent, especially in this market.

Robin’s comments on the Market in 2008-09
With prices rising so steeply through 2007, the correction in the market was inevitable, and many locations have seen prices move back to 2006 levels. I think the global financial fallout should start to balance out by mid-2009 and we will get back to a more even marketplace without the dramatic rises and falls seen over the last two years. With quality homes in blue-chip localities still being sold at great prices off market, the outlook for the first half of 2009 does appear to be encouraging. Buyers and sellers will soon adjust to the change in the market and will become more comfortable, as the market finds its new level. As long as our general economy stays stable and the trend for expats and people immigrating to Australia, and, more specifically, Bayside continues, then the signs for property in Melbourne Bayside is positive.

 

Dennis Bowen-Day – Biggin and Scott – Brighton

James Home Ratings Comments on Dennis
Dennis is a quirky selling agent and we mean that as a compliment. His style is not run-of-the-mill and he gets results that others can’t. He and Trudy Biggin work the Brighton off-market well. Dennis maintains a low profile and provides a very personal service.

Dennis and Trudy’s comments on the Market in 2008-09
We see the property market being a little patchy early next year, with prices likely to fluctuate perhaps up to 5% up or down. Most people realise that values have already eased considerably this year – perhaps even 10% over the past few months. It depends entirely on the property. Properties which are well presented and well priced have been selling and still attract good inquiry, mostly from the internet. Properties in particular under $800,000 have been selling. In addition, Victorian family homes have also continued to do well and attract demand, mostly in the $2 - $3 million price bracket. By far the best results have come from offering properties for private sale, rather than auction. Provided that the Contract and Section 32 are available the first day of inspection, then buyers are able to make offers immediately and often the property is sold in the first two weeks of marketing!!! It seems that with so much turmoil in the sharemarket and equity markets from week to week, even from day to day, a four-week auction campaign is just too long at the moment. Properties which are passed in and not sold in the next week tend to "hang around" and the price is ultimately compromised. The market will, however, turn around, as it does in normal property cycles. Auctions will once again produce premium results for vendors and prices will increase, perhaps even escalate within two years but, in the meantime, there is plenty of buying opportunities!!!

 

Campbell Cooney – Hodges – Brighton and Sandringham

James Home Ratings Comments on Campbell
For a director of a large real estate firm, Campbell is very hands-on. Campbell has a very clear and successful modus operandi and, in 2008, adopted a slightly more flexible attitude with the new market, resulting in more deals getting done that were good for his selling clients.

Campbell’s comments on the Market in 2008-09
The immense difficulty in predicting the future is exemplified when one looks at the surprise expressed by virtually ALL the pundits about what has just transpired.
Whilst there were those predicting a change in the market(s), who would have believed the severity and the speed of such a ‘correction’. Over the years, I have observed property people who survive all types of economic conditions by observing some very simple rules:

• Always be conservative and take only measured risk
• Never all ones eggs in the same basket
• Debt/equity levels must have a dollar or time buffer
• Research before decisions are made
• Receive counsel but require collaboration to establish credibility
• Decisions based on viable, logical evidence and not emotion

Expect journalists to continue with ‘sensationalist’ reporting throughout the year, especially during the first half where businesses caught unprepared will be forced into decisions made by extreme necessity. General cautiousness will be the order of the day, with many adjusting to the changed environs. Some major corporate falls will be on the front pages but the better underlying conditions in Australia will assist.

2009 will be looked upon as a year that was “good buying” if a longer term view is taken. Prices will have been adjusted (many too far) and good quality real estate will be able to be secured. It is unlikely that real growth will occur but good buying ensures this in the future. The levelling of prices will help transactional certainty and a fresh cycle will commence.
The best of good fortune to all.

 

David Lack – Biggin and Scott – Port Melbourne

James Home Ratings Comments on David
We have got a lot of time for David Lack – as far as apartments go, he really does tell it like it is. We believe that is good for the industry. He is great at following up and arranging private appointments and works hard.

David’s comments on the Market in 2008-09
During the course of 2008, apartments have not been selling at the rate that we would have expected compared to the previous two years. Whilst the Jan-Mar quarter started strong, the recent global financial downturn took its toll. In Port Melbourne, apartments make up 45% of the market and around 60% of these are leased. We usually have a strong turnover of investment properties and, even with rents constantly increasing, we haven’t seen anywhere near the same amount of turnover. Losses on shares have stopped investors purchasing and a downward movement in pricing has proved that investments are being held. However, with the government changes to the first homeowner grant, we have seen most of our activity in the low price brackets, typically $350,000 - $500,000. With house prices falling, the empty nesters have stayed in the family home and the top-end apartment market has not been stimulated anywhere in 2008. In the mid-market of $600,000 – $800,000, apartments have sold but only when priced keenly.

 

Stewart Lopez – Kay and Burton – Bayside

James Home Ratings Comments on Stewart
Nobody can question Stewart’s results and, along with David Urquhart, they have certainly added a real alternative to top-end Brighton sales both on and off market.

Stewart’s comments on the Market in 2008-09
2008 experienced a shift in conditions, which caught numerous people unprepared. The change in attitude and a significant market swing was very similar to 1990-92, and those of us who were working at that point probably experienced a sense of 'deja vu'.
The difference between then and now is significantly different in two ways! Firstly, the interest rates are slipping, not increasing; secondly, the real economy has not been affected to date as severely as it was in 1990. We are in the grip of 'mood' selling and buying, and the market is being driven almost entirely by confidence – or rather a lack of it. 2009 will probably see similar conditions prevail for the first six months while economies settle but, all things being equal, there could be a shift towards a more positive outlook in the second half of the year. As seen this year, a large part of our market will be driven by 'off shore' buyers and 'expats' returning home who will reap the benefits from a favourable currency exchange. Most importantly, it is crucial for vendors to have a balanced approach, and buyers should not let the ideal home pass just because they believe what they read in the newspapers.

 

Peter Smith – Jellis Craig – Boroondara

James Home Ratings Comments on Peter
Peter is a quiet achiever. He is never pushy and is really good at getting you to come and look at homes you might never have thought of. One of the homes we bought this year for a client was driven by Peter pushing us to look at it.

Peter’s comments on the Market in 2008-09
As a result of the 2008 economic downturn and volatile Australian stock market, people have lost significant amounts of wealth and property prices appear to have returned to the values of 2006. To ease the financial burden, interest rates have been considerably reduced and buyers are being attracted back to the market by government grants and first home buyer incentives, as well as high rental returns. With close proximity to shops, transport, parkland and schooling, Boroondara property values will be protected to a certain extent. 2009 will be the year for terrific opportunity for those people cashed up or looking to “trade up”.

 

Rae Tomlinson – Marshall White – Stonnington

James Home Ratings Comments on Rae
Rae works closely with Heather Elder and together they are a formidable duo in the Malvern area, particularly in the Gasgoine estate. They really do know that part of the world like few others. Rae is a particularly strong presenter of the seller’s position at all times.

Rae comments on the Market in 2008-09
With house prices back to more realistic levels compared to last year, the series of interest rate cuts have produced very favourable conditions for property purchasers. Many experienced home owners also know that when prices are low it’s the ideal time to upgrade their property. Although they may sell for less, they can purchase a more expensive property for a vastly discounted amount. Trading up in a low market means they stand to gain considerably more when values inevitably climb again. Despite the negative media talk about the real estate industry, we are still seeing strong demand for quality properties in good areas and are achieving high success rates at auction.

 

James Tostevin – Marshall White – Boroondara

James Home Ratings Comments on James
James does know how to get publicity but we have never seen anything other than a very professional effort. What we like about this “high flier” is that, when the going gets tough, James does not drop his seller – he keeps going.

James Tostevin’s comments on the Market in 2008-09
There is a strong sense that interest rates will need to continue to fall, especially in the first quarter, to ensure some stability and predictability returns to the real estate market. We are fortunate that we operate in such highly regarded and popular suburbs, demand is constant and a significant majority of property owners are now more realistic about the true market value of their property. Prospective vendors will need to scrutinise and select their selling agent with considerable thought and care in 2009 – the experience, tenacity, ability to ‘sell’ and negotiation skills of an agent have never been more important!

 

Jeremy Fox - RT Edgar - Stonnington

James Home Ratings Comments on Jeremy
Jeremy and our company has a bit of a love-hate relationship. However, Jeremy is an agent who puts buyers in cars and drives them around; he suggests off-market homes and he get deals done. We’ve grown to like Jeremy in 2008.

Jeremy’s comments on the Market in 2008-09
2009 will present a great, once in 20- year opportunity to purchase residential property at a significant discount to last year’s heady prices. Combined with record low interest rates and strong rental returns, this will prove to be a bonanza for the shrewd long-term buyer. Most investors shell-shocked from the share market correction will re-embrace residential real estate as a secure investment class. The fundamentals remain the same: increasing population, lack of stock and long time frame to complete new projects. History tells me these conditions will not last long.

 

Gerald Delany - Kay and Burton - Stonnington

James Home Ratings Comments on Gerald
Gerald Delany is a doyen of top-end real estate but he still answers his phone and knows his properties down to every little detail. He personally opened up a property last Boxing Day to allow somebody to measure up. The deal was done. No need to say much more.

Gerald’s comments on the Market in 2008-09
The market next year will be dictated by the amount of property that surfaces on the market. The last month of activity has resulted in a limited availability of high-quality homes. Market uncertainty has brought a reluctance of vendors to offer properties and purchasers to commit to the purchase of properties.

I expect the market activity in 2009 to be influenced by a stabilising of the world economic situation and particularly the continuing expected fall in Australian interest rates. Interest rates have been, and will continue to be, the single biggest influence on the property market.

The counter to low interest rates will be the availability in housing funding. However, banks, it is expected, will become more liberal in funding availability as surety in the economic environment becomes clearer. My summary is that activity will continue to be limited but clarity of the market will become clearer as the first quarter of 2009 draws to a close.

The unknown influence in the supply area will depend on the amount of duress that emerges in the selling arena.

Nick Elmore – Jellis Craig – Boroondara

James Home Ratings Comments on Nick
During 2008, Nick produced some great post-auction results for his vendors. If you are buying top end Hawthorn to Canterbury there is a fair chance Nick knows about it or is selling it.

Tim Picken – Jellis Craig - Boroondara

James Home Ratings Comments on Tim
During 2008 we found Tim very much a straight shooter. Tim makes buyers and sellers feel comfortable due to his follow up and careful language. In past years we have seen him organise painting, gardening etc personally to make a home better for sale.

 

Top 10 Auctioneers we witnessed in 2008

(in no particular order):

Damien Davis – Jellis Craig - Boroondara

James Home Ratings Comments on Damien
A quiet achiever. We have seen a number of homes this year that we didn’t think were going to sell actually get sold and get sold under the hammer. Not overtly flashy but effective.

Damien’s comments on the Market in 2008-09
The prices in the Camberwell, Glen Iris and Ashburton areas have definitely dropped back 10-20% on the heady days of 2007; however, we still remain well ahead of 2006 levels. My gut feeling on 2009 is that prices will remain steady as the dropping interest rates and influx of migrants are offset by greater unemployment and tighter lending policies by financial institutions. We still have willing buyers who want the fabulous amenities of these suburbs, so there is always going to be demand. I believe a good holiday break and a shift in focus by the media to something other than real estate and 2009 should be a more positive year.

 

John Bongiorno – Marshall White – Boroondara

James Home Ratings Comments on John
John is a big time, big crowd auctioneer. He maintains a strong presence, plays it straight, however can intimidate if you’re not up to the game. Some big sales have gone through his and James Connell’s company in 2008.

John’s comments on the Market in 2008-09
I believe that in 2009 we will continue to see bad economic news, mostly in the form of diminished company profits and the flow-on effects of the changed economic conditions in 2008 – and I personally feel we will see a sharp rise in unemployment. However, to every negative, there has to be a positive – housing has become more affordable due to the fall in values across Melbourne and I believe interest rates will continue to come down.

I also believe that, at some point in 2009, the real estate market (if it hasn’t already) will bottom out and, adding the two aforementioned factors together, it will provide an exceptional time for astute buyers and investors to take advantage of both substantially discounted house prices and substantially discounted interest rates. Coupled with population growth in Victoria and pressure on the availability of housing, 2009 will be a great chance for people to come into the market.

I am sure that when we look back on 2008-09 in years to come, we will say that these were the years where fortunes were made!

 

Andrew Macmillan – Bennison Mackinnon – Stonnington

James Home Ratings Comments on Andrew
We actually find Andrew’s auctions entertaining and, more often than not, he achieves a very good result. One auction in Malakoff St St Kilda mid-year with 10 bidders stands out as a very powerful auction.

 

 

Iain Carmichael– Bennison Mackinnon – Stonnington

James Home Ratings Comments on Iain
Like many high-quality auctioneers, Iain can be intimidating to some if the need arises, but he can also be gentle with those that need care. We are not always in agreement but we have always found him straight to deal with.

Iain’s comments on the Market in 2008-09
Given the staggering growth experienced in residential prices in and around Melbourne's inner-east over the five years to end-2007, it is likely that prices will see further falls in 2009. The good news is two-fold. Cashed-up buyers will enter the market with greater confidence and this will generate greater turnover as people realise that property is still the preferred asset class. Secondly, smart sellers can still be ahead of the market if they plan a sale early in 2009. This will position them well to take advantage of falling prices over the next 12-18 months.

 

Peter Batrouney – Jellis Craig – Boroondara

James Home Ratings Comments on Peter
Peter is such a consistent auctioneer for such a long period of time. When Peter is organising it you feel the home will be sold, so you adjust your strategy accordingly. He knows how to price his homes well and follows up at all times.

 

 

Steve Tickell – Hocking Stuart – Sandringham

James Home Ratings Comments on Steve
Steve is an unusual auctioneer in that he rarely goes for the threat or the heavy words but his auction strike rate is impressive. A genuinely nice man with a firm resolve, Steve consistently gets the very good results at auction.

Steve’s comments on the Market in 2008-09
Bayside has performed as best as could be expected in 2008 given the economic circumstances. Pockets of Brighton, Hampton and Sandringham have remained quite resilient, with prices, though under enormous pressure, remaining relatively steady compared with some sectors of Melbourne. Beaumaris and Black Rock appear to have come under heavy downward pressure, which is not surprising given the exceptional rise in values in those suburbs through 2007. In some cases, prices rose more than 25% in a 12-month period throughout Bayside, so any correction in 2008 has to be taken in context.

The neighbouring inland suburbs of Highett, Hampton East and Cheltenham also experienced enormous growth in 2007, so much so that 2008 has seen a marked decrease in prices, in particular over the past few months since the economic downturn. The correction experienced should now provide excellent value for those who had been priced out of the market by virtue of the boom, and already there is evidence of increased buyer activity over the latter part of the year, as first home buyers take advantage of the government grants and low interest rates.

Overall, if one was to view the market over a five-year period, it still shows that real estate is the most reliable place to invest your hard-earned money. Importantly, from our perspective, it appears vendors, in general, are in tune with the market and, as long as agents don't create unrealistic expectations, they are well prepared to meet the market. Buyers, as expected, are being more selective and looking for genuine value. The only danger they face is being at times too choosy, or too keen to buy a bargain, and missing out on what is otherwise their perfect property in the process.

We see a steadier market in 2009, with supply remaining very tight, and buyers becoming more prepared to re-enter the property market knowing that costs of living in general, including mortgage rates, are reducing to enticing levels. There will never be a better time for buyers to purchase their dream property.

 

Jason Scillio – Kay and Burton – Toorak

James Home Ratings Comments on Jason
Jason is a top-end auctioneer. When his game face goes on, he builds up a certain aloofness that is required when the very good properties are put under the hammer. In 2008, Jason has auctioned very well with none, one or multiple buyers.

Jason’s comments on the Market in 2008-09
2008 saw a reduction in the overall number of better quality offerings in the marketplace. I expect this trend to continue well into 2009. This tighter marketplace has kept the higher end in relatively healthy shape and it now takes longer for buyers to secure the right home. With the cost of money falling and many expats returning, I suspect an improvement in market performance around mid-2009. It is also worth noting that the number of homes sold after auction has remained strong.

 

Phillip Kingston – Gary Peer – Caulfield

James Home Ratings Comments on Phillip
Phillip is a first rate auctioneer and price picker. If you warrant, or can handle, the price truth, then Phillip might well tell you. His auctioneering style is consistently rhythmical and entertaining and effective.

Phillip’s comments on the Market in 2008-09
Property prices have dropped. It's as simple as that. All the optimism, creativity and polished dialogue that we, as agents, are trained to engage in cannot change the reality of the current market. The frenetic and aggressive price rises of 2007 have inevitably come to a halt. The great party for vendors (and nightmare for buyers) has well and truly lapsed into the hangover we are currently experiencing.

So why buy real estate in 2009 and beyond? Although property prices have receded up to a staggering 20 per cent, many buyers remain hesitant to jump in now for fear of losing a better opportunity in the future. It's a question I'm often asked: will waiting end up saving the buyer money or will it prove a costly gamble? While it seems unlikely that property prices will escalate sharply in the short term, recent history shows that prices can unexpectedly increase; clearance rates are already starting to climb.

My crystal ball is hazy, but I would not be surprised if the correction in prices has settled at its lowest level. Taking into account low vacancies, strong rents, low interest rates (with lower rates apparently to come), the first home buyer grant increase and the tightly held, blue-chip nature of the properties in this area, perhaps we should heed Mr Buffet’s advice and consider jumping back into the property market while our competition remains scared. My experience is that prices do not stay down indefinitely, and every graph, chart and historical perspective illustrates that property prices ultimately climb and hedge against inflation.

 

John Clarkson - Hocking Stuart - Brighton

James Home Ratings Comments on John
John is, without doubt, the most improved auctioneer we saw this year. A good natured auctioneer who can keep an auction going without dragging it out.

John’s comments on the Market in 2008-09
Buyers, sellers and agents alike have experienced testing times over the past year and I feel that 2009 will be a far more settled real estate cycle. I believe that we will see a return to more predictability for all involved in the industry. The only exception to this will be for those vendors “looking for a record price” or buyers “looking for the deal of the century”. For those that aspire for this “utopia”, I think you may still be looking to buy or sell in 2010!

Interest rates are at a level not seen for years and vendors who are in touch with today’s prices, and buyers who are in tune and well-educated, will be sure to benefit. The Bayside market, with all of its amenities, transport, schools and lifestyle, will continue to attract interest and positive activity. I think we can all take a deep breath from the trials and tribulations of 2008, and look forward, with optimism, to the possibilities that await us in the 2009 property market.

Good wishes to all.

 

Jeremy Desmier – Fletchers – Boroondara

James Home Ratings Comments on Jeremy
The best young up-and-coming auctioneer we saw this year. We like his attention to detail in his personal presentation and that of the homes he sells.

Jeremy’s comments on the Market in 2008-09
Entry-level properties in good locations continue to attract strong interest and often multiple bidders. This is especially true in the first home buyer bracket, which is being buoyed up by both government grants, and falling interest rates.

When the market gets tough, the old saying about position position comes into its own – with multiple properties available, any that have perceived flaws in terms of position are often overlooked by buyers, who tend to negotiate for the few that stand out as exceptional. There are still genuine buyers in the marketplace willing to pay a fair price; however, the market is very price sensitive. In 2007, an overpriced home was not a problem; the owner merely had to be patient and, 9 times out of 10, the market caught up to them. This year, the reverse has proven to be the case, and owners hanging out too long for an unrealistic price have ultimately chased the market down, to the detriment of the final result, or made the decision not to sell.

A final observation: there are some terrific buying opportunities at the present time. I have seen a number of buyers who have become a little “too cute” in the negotiating process, and have ended up missing out on a terrific property. Remember that if a property is attractively priced, and looks like exceptional value to you as a buyer, it probably looks attractive to other buyers as well. When you recognise this to be the case, it’s important to weigh up how a small percentage difference in the price compared with the prospect of missing the opportunity altogether.

 

Andrew Hayne - Marshall White - Stonnington

James Home Ratings Comments on Andrew
Andrew knows how to make people feel comfortable as he is taking their bids and is firm when buyers or bidders stray off his game plan. Also a good close quarters, rainy day auctioneer.

Andrew’s comments on the Market in 2008-09
If there is ever going to be a price sensitive market, then 2009 will be the one. Buyers will be very cautious about not overpaying just to buy. However, with the massive reduction in interest rates in late 2008 and more predicted, I expect to see some renewed enthusiasm form the buyers, especially in the second half of the year. For those looking to upgrade their properties, it will be a perfect opportunity. Vendors that price their properties competitively should expect a strong sale result with multiple buyers pushing the price beyond expectations.

 

Alastair Craig – Jellis Craig – Boroondara

James Home Ratings Comments on Alastair
Alastair also has a certain intimidation factor and that is necessary at the top end. Follows up well and has a one track focus on the seller’s needs. We witnessed a number of powerful Alastair Craig auctions in the past year. He knows his market very well and always returns calls.

Alastair’s comments on the Market in 2008-09
This year has seen a marketplace correction that I have never experienced in 28 years in real estate. Buyers have been ambivalent and non-committal; some owners have discounted to sell, causing a spiralling effect. Interest rate cuts, though, have caused buyer confidence to return. For people who are strongly employed, the market is highly opportune.

2009 is difficult to predict until the full effect of the worldwide downtown is apparent. However, with low interest rates and approximately 60,000 people moving into Melbourne, as long as unemployment is contained, we should see the market return to a sound base with modest growth.

 

Glen Coutinho – Hocking Stuart – Boroondara

James Home Ratings Comments on Glen
There is a lot to like about Glen’s style. He knows how to price homes for maximum impact and has an enthusiasm that is hard to match. Gets good numbers of bidders to most of his auctions we witnessed this year. And he always sends us a thank you card – but those chocolates need to be better quality Glen.

Glen’s comments on the Market in 2008-09
The inner-east market is eagerly awaiting a positive response from the recent interest rate cuts. Properties are still selling if the vendors have adjusted to the current pricing climate. There are still good buying opportunities out there. We are expecting some stability at these levels over the coming months. The market still has a good supply of realistic keen sellers and this will present good opportunities for buyers who are seeking quality real estate. Whilst the market has had a strong retraction over the past six months, it now presents excellent value!

Top Up-and-Comers we witnessed in 2008

(in no particular order):

Tom Aylward – Jellis Craig – Boroondara

James Home Ratings Comments on Tom
Tom has a presence about him that tells us he will go all the way if he chooses to. He communicates well and always has a calming word to a nervous buyer.

 

Andrew Wilke – Jellis Craig - Boroondara

James Home Ratings Comments on Andrew
Andrew is a hard worker who constantly refers properties to us and follows up. Andrew has a real talent for selling properties around the million-dollar mark and staying in contact with buyers.

Andrew's comments on the Market in 2008-09
Whilst 2008 was a year of uncertainty, I firmly believe that 2009 will be a year of great opportunity. Buyers contemplating purchasing will be faced with an option to try and secure property in some of Melbourne’s top suburbs. In Boroondara, property owners are surrounded by some of Melbourne’s top schools, great shopping precincts and a wide selection of public transport.

Lowering interest rates will continue to improve affordability for buyers and, provided vendors are willing to meet prevailing market levels, they will readily sell their properties. However, as there is a general shortage of established homes, I feel that the property market will return to strong volume and clearance levels as we approach 2010. In terms of upgrading your home/lifestyle, I believe 2009 will be the ideal time to make the move. Buyers are still trying to secure property in all price ranges.

 

Marcus Chiminello - Marshall White - Stonnington

James Home Ratings Comments on Marcus
Marcus is really a building force in top-end off-market homes. He works incredibly hard. If he can maintain his intensity and keep his sanity he will be one of “the top end agents”.

Marcus' comments on the Market in 2008-09
2009 will certainly be an interesting year ahead with a strong belief that the real estate market will bottom out (if it hasn’t already) and I foresee a lot of buyers that have been sitting back and waiting will re-enter the market. With interest rates falling dramatically, and likely to continue, it makes the climate favourable for purchasing in 2009. I feel this will stabilise the Stonnington & Boroondara markets, provide clarity and inject great confidence into our marketplace.

 

Kaine Lanyon – Bennison Mackinnon – Albert Park

James Home Ratings Comments on Kaine
Kaine is a class act and we have heard this from a number of people he has had dealings with. Kaine is one to watch – actually, one to use now if you are a seller. Like his respect for buyers as well.

Kaine's comments on the Market in 2008-09
2009 will no doubt be a very interesting year in and around the City of Port Phillip marketplace (Albert/Middle Park, South Melbourne, St Kilda, St Kilda West, Port Melbourne and Elwood areas). This year has seen the market soften somewhat, therefore presenting a brilliant opportunity in 2009 for buyers to invest in property while conditions are still purchaser-biased. With interest rates only continuing to contract, I strongly recommend buyers to acquire property in the first six months before prices start to inevitably appreciate again. We will no doubt look back on this current market in years to come and many will say “I should have bought property when there wasn’t too much competition to compete with”. Vendors need to appreciate that, whilst prices have softened, it’s merely only taking off some of the massive shine and growth they all enjoyed in 2007.

 

Halli Moore – Buxton – Bayside

James Home Ratings Comments on Halli
Got a property, got a realistic asking price, then Halli will get it sold. We like Halli. No nonsense.

Halli's comments on the Market in 2008-09
I believe that 2009 should be a solid year in the Brighton market. The recent interest rate cuts and the adjustment in prices should provide a positive stimulus and opportunity for buyers in the new year. Due to the fragile stock market, I believe that we should see an increase in investors coming back to the market because of higher rental yields. The current climate should not be seen as "doom and gloom" but as "opportunity".

 

Jackie Maggs – JP Dixon – Bayside

James Home Ratings Comments on Jackie
Jackie has always been an agent prepared to do private appointments and follows up on behalf of her selling clients religiously. Always knows property details eg land sizes etc and presents her selling clients case well. She does get the job done more often than not.

Jackie's comments on the Market in 2008-09
I believe the current market will remain similar to how the end of 2008 has been for the early part of 2009; however, I suspect there may be a further decrease mid-year.

Certain areas will be more affected than others, although areas at the higher end of the market, such as Brighton and Toorak, will always attract good demand. I also feel Private Sale will dominate, as far as achieving successful results go, and agents will need to really improve on their negotiation skills to survive in a changing market.

Regardless of what the market does, I strongly believe in remaining positive in outlook and not participating in negativity, as life must go on and people will always need to buy and sell real estate.

 

Lisa Jarrett – Abercrombys – Stonnington

James Home Ratings Comments on Lisa
Lisa is a first-rate suggester, persuader, meet and greet agent who gets buyers to properties. Lisa is a real pleasure to deal with, however please don’t read this as pushover. She is tough in a nice way.

Lisa's comments on the Market in 2008-09
Opinion is divided on the outlook for property prices in 2009. Since September 2008, the RBA has cut rates by 300 basis points, with further cuts expected in the first half of 2009.This should stimulate buyer demand, improve housing affordability and increase consumer confidence. Buyer demand should also be strong due to immigration, expats returning home and the recent increase in the first home buyers grant.

On the flipside, employment levels, consumer confidence and world economic conditions will see property prices subdued in early 2009.

2009 will see great buying opportunities, which have eluded many buyers in recent years.

James Home Ratings Selling Agent Awards - continued from top.

Most agents we deal with are straightforward with us, ethical and, like all of us, have struggled, a little, to cope with a rapidly changing market in 2008. None of us get it right all the time, buyer advocates included. Most really good selling agents are decent hard-working men and women who would much prefer to be truthful; however, often when the truth is given to a cynical world, they are not believed.

Most high-end selling agents are very good at their job. But buyers please note: they are working for the seller, not you, so if you want to pay too much or buy the wrong home, then they will let you do that because it is in their selling client’s best interests. This is not a criticism of them though.

It’s Christmas and it’s been a tough year, so, in the spirit of Christmas, we have put down our positive thoughts on the top 10 (a few more actually, because we changed our auctioneer and agent rating system mid-year to better reflect agents’ performances in a declining market and some scores were very close, so we included more than 10).

Please note that this is not an exhaustive list and there are many brilliant selling agents out there whom we do not run into because they are out of our area or do not cover the top-end properties that we report on or buy.

We also feel guilty leaving out Richards Earle and Winneke of Jellis Craig, Nick Johnstone of JP Dixon, Scott Hamilton of Buxton, Justin Long and John Morrisby of Marshall White and Elizabeth Teal, Barb Gregory, Andrew James of Hocking Stuart, among numerous others, because they are first-rate selling agents and auctioneers; however, we haven’t really dealt with them as much this year.

If you are selling, you would be wise to include any of these agents on your list. If you are buying, you will be treated very professionally by these people, but they are not working for you and do not have your best interests first. Indeed, we as buyer advocates do not represent sellers’ interests first either.

Could we also thank all the selling agents and auctioneers whom we have dealt with this year and who have contributed their own words.

JAMES 2008 MARKET REVIEW - $1 MILLION-PLUS HOMES

2008 has been a difficult year for buyers and sellers alike in the $1 million-plus inner Melbourne market. Prices and turnover are down significantly compared to last year. This is best illustrated in some statistics.

In November 2007, in the four jewel suburbs of Brighton, Toorak, Albert Park and Hawthorn, we were aware of 55 $1 million-plus sales. In November 2008, in these suburbs, with an extra auction Saturday, we were aware of only 30 $1 million-plus sales. The difference between the median $1 million-plus homes in these four suburbs in November 2007 compared with November 2008 was a reduction approaching 15 per cent.

This supports our anecdotal statements during the year that the $1 million-plus housing market has dropped in price expectation between 10 per cent and 40 per cent, depending on the quality of offering. It is also interesting to note that in the suburbs of Black Rock, Bentleigh, Balwyn North and Glen Iris - which are four fringe suburbs - we were aware of 31 $1 million-plus sales in November 2007 compared to 12 $1 million-plus sales we were aware of in November 2008.

These financial outcomes have significantly affected buyers' and sellers' emotional outcomes in 2008, resulting in higher stress in transactions, less certainty of result and, in a number of cases, buyer and seller unhappiness with the transaction process. However, for those willing to act, there was a significant increase in buying opportunities, particularly for buyers cashed up and/or willing to trade up, compared with 2007.

THE JAMES TOP 10 RATED PROPERTIES OF 2008

4     2     2 3 Fairview Street, HAWTHORN 928 BOUGHT*: Undisc   |    Landsize: 1,222m2 ($2,905 per sqm, at quote) Property Type: Larger Houses    |   Property Style: Period "One of the special homes. We only see 10 to 20 of these a year...." - Buyer Advocate: Mal James 0408 107 988 Private Sale Selling Agent: David Oster Jellis Craig 5     3     4 8 Yarradale Road, TOORAK 921 BOUGHT*: $7,500,000   |    Landsize: 920m2 ($8,152 per sqm) Property Type: Larger Houses    |   Property Style: Modern "A wonderfully designed and crafted home..." - Buyer Advocate: Adam Woledge 0413 318 079 Private Sale Selling Agent: Michael Armstrong Kay & Burton 5     4     2 45 Chrystobel Crescent, HAWTHORN 914 BOUGHT*: Undisc   |    Landsize: 1,833m2 ($4,037 per sqm, at quote) Property Type: Larger Houses    |   Property Style: Period "A grand Victorian home, exquisitely renovated in one of Hawthorns best precincts Grace Park..." - Buyer Advocate: Mal James 0408 107 988 Private Sale Selling Agent: Michael Gibson Kay & Burton 4     2     2 9 Maleela Avenue, BALWYN 909 BOUGHT*: Undisc   |    Landsize: 1,851m2 ($1,961 per sqm, at quote) Property Type: Larger Houses    |   Property Style: Period "This is a lovely home with great flow indoors and outdoors. Good seperation of rooms to allow entertainement but also maintain privacy. Street is a beautiful one in Balwyn's best area (effectively Can..." - Buyer Advocate: Mal James 0408 107 988 Auction: Jul 26 2008 Selling Agent: Peter Smith Jellis Craig 5     3     2 2 Kelmscott Road, ARMADALE 902 BOUGHT*: Undisc   |    Landsize: 2,000m2 ($5,000 per sqm, at quote) Property Type: Larger Houses    |   Property Style: Period "A true Victorian with wonderful and large entertaining areas. One of my favourite homes of the year...." - Buyer Advocate: Mal James 0408 107 988 Private Sale Selling Agent: Tim Derham Abercromby's 4     4     9 25 Cosham Street, BRIGHTON 901 BOUGHT*: Undisc   |    Landsize: 1,019m2 ($5,397 per sqm, at quote) Property Type: Larger Houses    |   Property Style: Modern " This is one of the best cutting edge, modern family homes you will see. I look at hundreds of homes per month, visit scores and buy 3 to 4. I would only see a handful of this quality per year. Hard..." - Buyer Advocate: Mal James 0408 107 988 Private Sale Selling Agent: Sturt Hinton Kay & Burton 5     5     7 17 Grange Road, KEW 897 BOUGHT*: Undisc   |    Landsize: 1,215m2 ($4,115 per sqm, at quote) Property Type: Larger Houses    |   Property Style: Modern " Look, this home is not my style decorator wise but it does have everything a new classic home would want. In fact it’s hard to fault on any point. This home will be particularly attractive to..." - Buyer Advocate: Mal James 0408 107 988 Private Sale Selling Agent: Sean Cussell Marshall White ADVERTISEMENT 5     4     5 23 Cosham Street, BRIGHTON 896 Agent Refused Quote   |    Landsize: 1,001m2 Property Type: Larger Houses    |   Property Style: Period " An awful lot to like about this home - position to beach and in one of Brighton\'s best streets Good land size and north facing rear for light; however that is still the not the real attraction - i..." - Buyer Advocate: Mal James 0408 107 988 Private Sale Selling Agent: Stewart Lopez Kay & Burton 5     4     3 36 Bryson Street, CANTERBURY * 891 PROVISIONAL RATING BOUGHT*: Undisc   |    Landsize: 833m2 ($0 per sqm, at quote) Property Type: Larger Houses    |   Property Style: Period "Similar to other Dugdale projects , this house has been fantastically renovated and has genuine WOW. How it will perform in these times of uncertainty is tough to pick...." - Buyer Advocate: Adam Woledge 0413 318 079 Auction: Nov 8 2008 Selling Agent: Nick Elmore Jellis Craig 4     2     3 13 Goodall Street, HAWTHORN 884 BOUGHT*: Undisc   |    Landsize: 782m2 ($3,581 per sqm, at quote) Property Type: Larger Houses    |   Property Style: Period "A fantastic house with a faitfull renovation..." - Buyer Advocate: Adam Woledge 0413 318 079 Auction: May 3 2008 Selling Agent: James Tostevin Marshall White

James 2009 Outlook - $1 million-plus homes

In early 2009, for $1 million-plus homes, we see prices continuing to decrease.

This is because of the following:

• increase in supply caused by unsold 2008 properties, combined with new 2009 properties for sale (forced and unforced);
  
  and
• buyer reticence (lower demand) caused by economic uncertainty.

For prices to improve from a seller's point of view in late 2009, there will need to be a reduction in supply and an increase in demand. At this stage, our crystal ball says "that seems unlikely". 2010 - who knows?

Finally, in 2009, buyers who still need to live somewhere or who want to move from the fringe suburbs to the jewels (trading up), there has never been a better time in our memory, owing to interest rates and low seller confidence.

Buy well.

Mal, Adam & Grant