Lessons from The Block: putting the real estate “reality” into reality TV
So, here’s the reality: “The Block” isn’t about real estate. It’s about entertainment, eyeballs, and advertising dollars.
In fact, having seen behind the curtain a couple of times now, the reality of it is somewhat different to what gets shown “at 7 o’Block on 9”.
For those who missed it, I was privileged to be invited by OBrien Real Estate to be their auctioneer on behalf of contestants Maddy and Charlotte. The Phillip Island home went to auction last weekend and here are the highlights:
The house sold for $3.5 million – $1.55 million over reserve.
Maddy and Charlotte won The Block competition, making them the youngest ever winners.
The same buyer, billionaire Adrian Portelli, bought all five homes for a total $15.03 million.
But while the controversies and headlines swirl, there are some real-world positives to be taken away. Beyond the glamorous renovations, this year’s Block serves as a fascinating case study on auction dynamics, buyer psychology, and strategic market positioning.
Firstly, in contrast to previous seasons of The Block, realistic reserves and competitive pricing emerged as key drivers of engagement. In a market where inflated vendor price expectations can deter buyer interest, setting realistic reserves incentivised genuine bidding and resulted in all properties being sold.
This is a notable contrast to current market trends, where unrealistically high reserves often leave properties lingering on the market for extended periods of time. For agents and vendors, a grounded pricing strategy can make a significant difference, as it did on The Block.
Registration of bidders was another valuable takeaway. By requiring $5000 deposits and bidder registration 24 hours before the auction, agents had a clear view of potential buyers, making auction day smoother and more focused. This approach not only streamlined operations but also allowed agents to engage more effectively with bidders, creating a more controlled and engaging environment.
We’ve said it before, and we’ll say it again: it’s high time we introduced bidder registration in Victoria. We’re one of the only states that doesn’t require it, which makes no sense.
Interestingly, the portfolio auction approach demonstrated unexpected benefits. Conducting consecutive auctions created a sense of overflow interest – unsuccessful bidders on one property were ready to compete for the next, driving up competition in later auctions. This strategy could be particularly beneficial in a challenging market, drawing collective attention to multiple properties and fostering competitive bidding. It’s worth considering if you have multiple properties with common prospective buyers.
Buyer relationships proved invaluable. In a buyer's market, fostering rapport and building trust with prospective buyers can be the decisive factor in securing a sale. Nurturing these relationships can help agents stand out when buyers have numerous options, and it worked beautifully in the case of The Block last weekend.
Lastly, I’d like to say an enormous thank you to the OBrien team for the invitation and opportunity to work with them on this campaign. The OBrien team are absolute consummate professionals, who worked bloody hard on this campaign and achieved an excellent result for their vendor. I’m grateful for the experience and hopeful that we might work together again in the future.
So while "The Block" may be all about the entertainment, the lessons it offers are highly applicable to real estate professionals in the real world. Embracing these insights – realistic pricing, bidder engagement, strategic auctions, and relationship building – can also help drive success in the real world.
Join us as we turn the torch on our auction observations each week with Auction Spotlight, check out past editions on our socials, and don't hesitate to give us a call on 03 9221 6226 if you'd like to chat.
Paul Tzamalis & The Auction Company team