GOOD MORNING FROM ELITE AGENT

Some listings sell on charm … this one is selling on sheer audacity. A mould-covered, graffiti-tagged, and crumbling two-bedder in Mitchelton has become Australia’s most-watched property on realestate.com.au last week, drawing sight-unseen offers from flippers who apparently love a challenge. Listing agent Rob Missenden says he’s had “more offers than I could count”, but many won’t pass finance. His take? “You get a bobcat in there, a couple of loads to the dump… there’s heaps of return for investment.” A classic case of buyers seeing past the wreckage to the land value beneath. At $699,000, (40% below the suburb median), this listing screams “don’t renovate, just detonate.”

Today’s read time: 5 minutes, 19 seconds.

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SALES

PRICING TO WIN

When discussing pricing—whether your commission rate or a property's list price—minor adjustments in how you present those numbers can make a big difference in how your customer receives them.

And it’s a fascinating topic - the science of pricing decisions has fascinated researchers for decades.

In the 1970s, psychologists Daniel Kahneman and Amos Tversky revolutionised our understanding of how people make financial decisions, eventually earning Kahneman the Nobel Prize in Economics.

Their groundbreaking research revealed that pricing decisions aren't purely logical - psychological factors deeply influence them, and their discoveries sparked a wave of research in behavioural economics:

• Robert Cialdini's influential work on persuasion identified key principles like social proof and commitment that shape buying decisions.

• Researchers Thomas and Morwitz later discovered the 'precision effect,' showing how specific numbers are perceived differently than round ones.

• Meanwhile, William Poundstone's studies on ‘menu engineering’ revealed how the presentation of prices significantly impacts choice.

The Power of Precise Numbers

A 2007 study published in the Journal of Consumer Research by Manoj Thomas, Daniel Simon, and Vrinda Kadiyali introduced something called the "precision effect."

Their research showed that people perceive precise numbers—like $897,500—as much smaller than round numbers—like $900,000—even though there is only a 0.28 percent difference.

Social Proof: Why "Most Popular" Wins

The idea of social proof was first studied by psychologist Morton Deutsch in 1955, but it took off in the pricing world with a 2012 Marketing Science study.

That research, which analysed over 100,000 online purchases, found that labelling an option as “most popular” increased its selection rate by 47% and—more importantly—reduced price sensitivity by 23%.

In other words, people were willing to pay more just because others had chosen that option.

Build Value Before Discussing Price

A 2024 study in the Journal of Digitainability (what a great title!) found that buyers and sellers who feel confident in the process are more likely to accept higher-value services. So the takeaway here is to take them through your process before you discuss fees (then provide two precise options with a “most popular tag” on one of them.

If you’d like to dive deeper and get a simple checklist on how to implement these strategies, get it free under “Spark Notes” in our community.

ICYMI, yesterday we covered how to have tough conversations with vendors

TOGETHER WITH AI POWERED AGENTS

Stop the Scroll!
Are you sick of cliches like 'dream home' in your AI-generated listing descriptions? There's a better way to craft hooks that actually stop the scroll.

Drawing inspiration from advertising legends like Don Draper (who knew a thing or two about selling happiness), discover how to transform your AI prompts from basic to brilliant.

Learn the exact framework that turns generic copy into magnetic property descriptions that capture attention and drive interest.

Subscribe for more AI prompts and tips here.

SMART SNIPPETS

HIA urges Budget action to fix housing shortage
The Housing Industry Association (HIA) has called on the Federal Government to use the 2025-2026 Budget to tackle Australia's housing shortage, warning that only 180,000 homes were built last year, which is well below the 240,000 needed annually. HIA is pushing for $12 billion in infrastructure funding, national planning reform, and solutions to workforce shortages, with 83,000 additional skilled workers needed to meet housing targets.

Turn Presentation Anxiety into Listing Success
Feel your heart racing before a listing presentation? You're not alone. Public speaking expert Michelle Bowden reveals that glossophobia - the fear of public speaking - affects many professionals, including seasoned real estate agents.

In this insightful piece, she shares practical strategies from her experience helping executives overcome presentation anxiety, including a clever radio rehearsal technique and mindset shifts that transformed one professional from fainting during presentations to becoming an acclaimed speaker.

Learn five proven tactics to master your next listing presentation or market update with confidence.

Can you correct the dark traits of leadership?
Nobody's perfect - and while we all know what makes a 'great' leader in 2025, the reality is we each have our flaws and quirks. The good news? Some traits we consider weaknesses can actually become strengths when understood and channelled correctly.

From being 'too pushy' to having a strong ego, discover how successful real estate leaders are transforming seemingly negative characteristics into powerful assets that drive their agencies forward.

CELEBRITY HOMES

Olympic legend Mo Farah's golden mansion up for grabs
Four-time UK Olympic champion Sir Mo Farah is parting ways with his luxury Surrey mansion, listing it for £6 million ($12 million). The 7,829-square-foot property features eight bedrooms, a swimming pool, and fittingly for an Olympian, comes complete with its own treadmill in the entertainment room. The champion runner stands to make a tidy £2 million profit on the sale.

MOVERS + SHAKERS

Ray White launches The Bayside Group.
Kevin Chokshi, Kyle Dorman and Mark Guthrie expand their successful operation with a third office in Sandringham growing their reach in Melbourne's bayside region. More here.

Success doesn’t rest on weekends! 
Get the latest on top agent and agency moves every Sunday with our weekly roundup in Movers & Shakers. Subscribe now.

SOUND WAVES

A real estate agent’s ghostly dilemma

For some buyers, a haunted house is an absolute no-go. For others, it’s a spine-tingling selling point. In America’s ghost-loving cities like Savannah and New Orleans, a touch of paranormal activity can even add value. But for agents, dealing with these spooky listings means navigating disclosure laws, buyer psychology, and, on occasion, calling in the ghostbusters.

Dive straight into the listen below or the deeper dive here.

Read the article from Market Watch here

AGENTS ON SOCIAL

Agent by day, therapist by necessity! If only real estate licences came with a counselling qualification. Between soothing stressed-out vendors, managing buyer meltdowns, and refereeing family price wars, agents do more emotional heavy lifting than a relationship coach. 😳 😮‍💨

Seen an Agent On Social we should include? Let us know here (email link)

Wishing you a productive day

Elite Agent is crewed by Mark Edwards, Catherine Nikas-Boulos, Rowan Crosby, Charmagne Arrubio and Samantha McLean. We aim to uplift the real estate industry by delivering forward-thinking, hype-free news and education that fosters knowledge and fuels ambition.

Stories marked with * are sponsored, including 'Together With' and the weekday 'Movers & Shakers' sections. Interested in promoting your brand to Elite Agent’s audience? Learn more at eliteagent.com/advertise.

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