Let's consider the moment when 30,000 Melbournians reportedly rocked up to a 'room reveal' mid-series. This is the moment where I imagine every real estate agent, auctioneer and agency jumping up and down to get on board The Block, revel in the hype and surf on the wave of millions of viewers. The exposure is priceless.
This desire occurs, in my experience, about one month before the big auction night. Which, when I pop my PR cap on, is fortunately about six months too late to become involved anyway.
There is a time, pre-production, when agents can pitch to be involved in the series. Ironically, it is that very same time that most agents would shudder at the very idea. Why? Their freshest memory during pre-production is the result and ensuing publicity for the auctioneers and agencies involved in the previous series. Let me take you back to the season before last, when the hammer fell and some didn't sell: reserves were criticised and the housing bubble hysteria re-inflated. The media had a field day and by-proxy agencies and auctioneers wear some of the blame for the results ... and the mysterious real estate game remains a mystery.
An agents' view of The Block is not a particularly positive one in the aftermath of a season final. Consider again the 2010 series in the exclusive enclave of Sydney's Vaucluse. One property in four recouped costs. The post-event commentary and scruting of the show's auction results and the wider implcation for the market is not confined to property journalists and property pages. Property matters to everyone... in theory. We all fit into a category: renters, owners, sellers, investers - we all need 'shelter'. But The Block manages to thrust the property market into the homes of millions that perhaps otherwise aren't monitoring the expert insights day-to-day.
Despite the attention it brings the industry, the publicity for the agencies and auctioneers immediately post-event is seldom positive. And this season, the 2011 season in Richmond Victoria, has been no different. Three of the four properties failed to make it over their reserve prices and in the days following the show everyone has had their two-cents worth on The Block results: talk back radio, newspapers, even rival television networks.
Most of it stems from the disappointing lack of sales but perhaps the most damaging publicity is the news that all four agencies have been “raided” by Consumer Affairs Victoria post-auction. Underquoting allegations are not ideal.
Media reports more broadly have been so-so with criticism of the reserves, the auctioneers, the crowd etc. The Twittersphere has been even less kind.
The Block series has an opportunity to demystify the current market and the auction process. It’s an opportunity to deliver some transparency to the real estate industry, to show how reserves are decided and how buyers are identified and engaged. Does it achieve this? Not really. Does it aspire to? Probably not.
To me, as someone somewhat removed from the intricacies of real estate, I thought the reserve prices looked ill-informed, the buyers looked to be outnumbered by glittered-up hangers-on and the competitors were audibly despondent when the gavel fell. This doesn't at all represent the many evening in-room auctions I have attended.
This wasn't a good advertisement for real estate investments, even in a climate of disconcerting instability in other investment options.
The production company purportedly spent an average of $950K per property. Another $100K was then spent on renovations. And the outcome? Well contestant Katrina summed it up in one sullen sentence when her property passed in: “waste of time really, wasn’t it?”
With this in mind, four houses have been purchased in Dorcas Street, South Melbourne. Casting is occurring now for the next season.
I wonder what the many South Melbourne based agents are considering as they weigh up their opportunity to bid for inclusion in the show. Is it better to be part of this juggernaut and chance the outcome? How much control do we have over reserves and the time the reserves are set? How will the market move during the twelve months between the original property purchase and the series airing? How much marketing time do we have? How much access to potential buyers do we have prior to the auction?
It's so easy to get swept up in The Block frenzy mid-season and to want to put your money where your mouth is as an auctioneer or an agency and enjoy the publicity. And how long lived is the publicity impact? Can you name the four agencies involved in the 2010 Sydney season?
Is the hype worth the risk of being the face of a mediocre result in an unnatural real estate atmosphere? And is the potential for a positive outcome going to serve your business name long enough to justify the risk?
Interesting piece Lyndsey.
ReplyDeleteI'm inclined to think the producers will have learned some great lessons from this series of The Block and the volatility of the property market. I've been an A grade student of this series being closely associated with one of the contestants and also the selection of their auctioneer.
I have no doubt that there will be loads of potential 'cast members' and 'aspiring agents' lining up for their 15 minutes of fame in the next series. Its the nature of the drug that is Reality TV.
Agents fly by the seat of their pants, often in an artificial environment, every Saturday at auctions across Australia. Its what we do.
Is it an ideal environment? I think not.
Do I think that all 4 auctioneers did their craft justice on Sunday night?. No I don't think so. I think 2 did an excellent job in the circumstances and maximised their opportunity to exploit their 15 minutes of fame.
The lesson. If you're going to play in the Grand Final. You'd better have the best team available on the paddock.