Imagine a real estate sales board outside your home informing potential buyers: “Big block yes. Parkland outback, you bet. Great house, not so much. Don’t worry, we know a demolition guy.” Or: “Any closer to the creek and you’d be in it.” Or: A burger with the lot - you just need to hand over the pineapples.”

Contrarian real estate agent John Matthews is behind these quirky sales and marketing campaigns.

Speaking to The Real Estate Conversation, John Matthews, “The real estate industry is tired, sedate and out of date,” he says. “Real estate agents continue to write safe and boring marketing copy on sales boards and in advertising space. This formula is decades old and decaying.

“So we decided to spruce things up a lot. Our sales boards stop people in their tracks because they are different. The same goes for our sales and marketing displayed on industry websites, in traditional and social media and on our website. We write ads that are genuine and funny and they attract attention. They get people talking. We streamline all our media to enhance our reach among targeted audiences.”

His own website is called Matthews. A click on the site informs, “not another agency”, and “no more real estate speak”. Another click on the website invites browsers to “contact a human”. “Pick up the phone and give us a call,” the website advises browsers. “Our agents are happy to chat.”

Marketing copy refers to his physical agency office in Puckle St, Moonee Ponds as a “very un-agency agency”.

“We’re not real estate agency type people,” Matthews says. “We’re more like an advertising agency that sells real estate. We go against the traditional real estate grain and challenge the status quo.”  

And don’t expect to meet Matthews in a suit and tie wearing shiny black shoes. Such a dress code doesn’t fit the culture of the firm. It’s too sterile and belongs to another era.

“Today, I’m wearing a nice blazer, t-shirt, jeans and smart casual shoes,” John says. “That’s typical neat casual attire that we encourage our staff to wear. We like to keep it real.”  

COVID-19 REFLECTION

John Matthews started his own firm in October 2021 after a successful career working for other agents since 2002.

COVID-19 lockdowns gave Matthews time to reflect on his career and to map out plans to build a new business.

“What I wanted to do was create a point of difference in the industry by developing and establishing a niche real estate model,” Matthews says.

“I didn’t want to establish a franchise business under an existing real estate group because it would hamstrung me to conform with the status quo.    

“I was tired of the way real estate agents operated within narrow and inflexible guidelines. Essentially, they all operate in the same way using a similar manual.

“I wanted to do things differently by capitalising on my vast contact book. I keep in contact with buyers and sellers after auctions, or private sales to ensure they have access to the latest real estate trends and news flow updates.

“We offer a comprehensive service after the fall of the hammer. Our model is growing the business, and we plan to expand the company across Melbourne under partnership agreements.”

Matthews says very few agents are starting new businesses to compete with existing firms.

“I don’t consider establishing a franchise as a new business,” he says. “It’s merely an extension of an established group’s old model. 

“Agents tell vendors what they want to hear when it comes to selling a property. Agents will tell vendors they can achieve their price even if it’s unrealistic and way too high compared to similar properties in the same suburb.

“Agents will claim to offer the lowest fees compared to competitors. Real estate speak is all about attracting listings and commissions at any cost.

“Now, do I want to charge my client a low fee? No. I want to charge a fair fee. Do I want to massage a vendor’s ego by agreeing we can achieve an unrealistically high price? Of course not. I want to suggest a realistic price that will sell the property. But that doesn’t mean we’re not trying to hit the ball out of the park. We’re always in the market trying to achieve the best possible price.”

PROPERTY OUTLOOK 2023

Matthews expects property prices to average a fall of between 10 per cent and 15 per cent in Australian capital cities in 2023.

“I expect we will find a bottom between July and October 2023,” he says. “You can only retrospectively find the bottom. There is no alert. Then I expect interest rates to trend down in December 2023 or early 2024.”

Matthews says higher interest rates can only drive down property prices as intended. Interest rate movements are blunt instruments, so they take time to filter through the economy. Also, higher interest rates reduce borrowing capacity.  

He suggests buyers factor in a buffer of about 2 per cent into their home loans to offset potentially higher mortgage repayments.

Also, he suggests buyers stick to the facts about their income, other revenue and expenses when applying for a loan. Borrowing too much can lead to mortgage stress.  

WHEN TO BUY

Matthews says higher interest rates can provide attractive opportunities for buyers with realistic expectations.  

Higher interest rates reduce buying competition on affordability grounds. So sellers also have to be realistic about price.

Also, higher interest rates can have a psychological effect on buyers.

“The real estate market can be difficult to read and evaluate at times,” Matthews says. “When the market was roaring a year ago, buyers were furiously bidding and prepared to pay up to 20 per cent above the reserve to win an auction. It was a herd mentality to secure a property at any price.

“Now property prices are falling, some buyers are reluctant to make a bid. Shrewd buyers generate wealth over the longer term by taking advantage of weaker prices.”

JOHN MATTHEWS PROFILE

John began in the real estate industry as a 19-year old when employed by his uncle. He moved to other agencies across Melbourne and was rewarded for his sales success.

In 2009, he won senior auctioneer within Barry Plant’s real estate group. He won group salesperson of the year three consecutive times between 2012 and 2015 at Nelson Alexander.

Matthews won Real Estate Institute of Victoria (REIV) senior auctioneer in 2007. He was a REIV master auctioneer inductee in 2015.

John’s partner Jillian and mother Kay work in the Matthews business. John transformed an old nightclub into an open plan office layout, with generous space drenched in natural light.

“We didn’t want our office to feel like a typical real estate agency, where the space is divided among staff according to seniority,” Matthews says. “I believe an informal layout presents a more comfortable environment to do business as opposed to a divided sterile corporate look.”