{"id":5270,"date":"2023-06-13T18:10:00","date_gmt":"2023-06-13T22:10:00","guid":{"rendered":"https:\/\/propertyonion.com\/education\/?p=5270"},"modified":"2024-12-04T15:15:43","modified_gmt":"2024-12-04T19:15:43","slug":"interview-with-the-2023-property-auctioneer-of-the-year-james-pratt","status":"publish","type":"post","link":"https:\/\/propertyonion.com\/education\/interview-with-the-2023-property-auctioneer-of-the-year-james-pratt\/","title":{"rendered":"Interview with the Property Auctioneer of the Year: James Pratt"},"content":{"rendered":"\n<p>James Pratt is a world-class real estate auctioneer \u2014 but not for <a href=\"https:\/\/propertyonion.com\/education\/11-questions-newbies-have-about-starting-in-foreclosure-auctions\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"foreclosures or tax deeds (opens in a new tab)\">foreclosures or tax deeds<\/a>. No, Pratt auctions luxury homes. He holds over a hundred sale-price records, including the record for the highest sale price for an auction in California, Australia, and Sydney. He\u2019s auctioned more than 11,000 properties over his 12-year career, and he\u2019s won the REB Australian Auctioneer of the Year Award in 2019, 2020, 2021, and 2023.&nbsp;<\/p>\n\n\n\n<p>PropertyOnion.com sat down with Pratt to talk about his real estate career, his advice for investors, and his insights on the U.S. property market for 2024.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Due to higher interest rates, inflation, and pandemic-related changes in people\u2019s lifestyles and workplaces, Pratt thinks the rapid home value increases we saw over the last few years are a thing of the past.<\/p><\/blockquote>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">In this Article:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/propertyonion.com\/education\/interview-with-the-2023-property-auctioneer-of-the-year-james-pratt\/#How_Pratt_Got_Started_in_Real_Estate\" >How Pratt Got Started in Real Estate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/propertyonion.com\/education\/interview-with-the-2023-property-auctioneer-of-the-year-james-pratt\/#Pratts_Predictions_for_the_US_Real_Estate_Market_in_2024\" >Pratt\u2019s Predictions for the U.S. Real Estate Market in 2024<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/propertyonion.com\/education\/interview-with-the-2023-property-auctioneer-of-the-year-james-pratt\/#Where_Pratt_Sees_the_Greatest_Impact_of_Generative_AI_on_Real_Estate\" >Where Pratt Sees the Greatest Impact of Generative AI on Real Estate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/propertyonion.com\/education\/interview-with-the-2023-property-auctioneer-of-the-year-james-pratt\/#Pratts_Advice_for_New_Real_Estate_Investors\" >Pratt\u2019s Advice for New Real Estate Investors&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/propertyonion.com\/education\/interview-with-the-2023-property-auctioneer-of-the-year-james-pratt\/#Pratts_Favorite_Property_Type_Craziest_Real_Estate_Story_and_Mentoring_Success\" >Pratt\u2019s Favorite Property Type, Craziest Real Estate Story, and Mentoring Success<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Pratt_Got_Started_in_Real_Estate\"><\/span><strong>How Pratt Got Started in Real Estate<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Pratt started by getting his diploma in real estate and land economics at university. After graduating, he worked at a small Australian auction office, which encouraged him to compete in the country-wide&nbsp;<a href=\"https:\/\/www.reinsw.com.au\/NAC\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Novice Auctioneers Competition<\/a>&nbsp;(NAC). \u201cI kept moving up from division to division and ended up becoming runner-up for all of Australia,\u201d Pratt said. \u201cThat was the point where I thought, \u2018Hey, I can be an auctioneer.\u2019\u201d<\/p>\n\n\n\n<p>In 2010, Pratt became a full-time auctioneer at McGrath Estate Agents. In 2016, he became Head of Auctions Australia and International for the real estate franchise group Raine &amp; Horne. Now, Pratt auctions luxury properties around the world through his own company called&nbsp;<a href=\"https:\/\/jamesprattauctions.com\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">JPA Group<\/a>, which he opened in 2017.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pratts_Predictions_for_the_US_Real_Estate_Market_in_2024\"><\/span><strong>Pratt\u2019s Predictions for the U.S. Real Estate Market in 2024<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When asked about where the U.S. real estate market is headed in 2024, Pratt said that he anticipates a slowdown. Due to higher interest rates, inflation, and pandemic-related changes in people\u2019s lifestyles and workplaces, Pratt thinks the rapid home value increases we saw over the last few years are a thing of the past:<\/p>\n\n\n\n<p>\u201cWe&#8217;re going to see more like maybe 1% to 3% growth in some areas, while other areas might grow 5% to 8%, such as Florida. But on average, I think it&#8217;s going to be a slow burn and not too much of an increase overall.\u201d<\/p>\n\n\n\n<p>Pratt also added that some areas are encouraging real estate investment more than others. For example, Los Angeles&nbsp;<a href=\"https:\/\/abc7.com\/los-angeles-mansion-tax-measure-ula-affordable-housing-homelessness\/13059677\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">introduced<\/a>&nbsp;a so-called \u201cmansion tax\u201d that went into effect on April 1st. It adds an additional 4% tax on properties that sell for $5 million or more, and 5.5% for homes that sell for $10 million or more on top of all the other taxes and fees associated with selling a property.&nbsp;<\/p>\n\n\n\n<p>Pratt explained that if you have a property listed in the high four millions and your realtor does a great job negotiating someone to five million or more, you actually have to tell your realtor that it makes more sense to take a lower offer, because if it goes over five-million, you would pay more in taxes.<\/p>\n\n\n\n<p>As Pratt pointed out, the \u201cmansion tax\u201d is a bit of a misnomer since, in California, a five-million-dollar house could be anywhere: \u201cWhether it be in Studio City, Santa Monica, or Bel Air, the mansion tax affects people who want to get that family house.\u201d<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Pratt believes generative AI will be a real game changer for agents.<\/p><\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Where_Pratt_Sees_the_Greatest_Impact_of_Generative_AI_on_Real_Estate\"><\/span><strong>Where Pratt Sees the Greatest Impact of Generative AI on Real Estate<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>We also asked Pratt for his thoughts on how generative AI tools, like&nbsp;<a href=\"https:\/\/propertyonion.com\/education\/how-chatgpt-can-help-real-estate-investors\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">ChatGPT<\/a>,&nbsp;will impact real estate professionals. He said that he\u2019s already seen low-hanging fruit applications, such as agents using it to write social media posts and property descriptions.&nbsp;<\/p>\n\n\n\n<p>\u201cHowever, where I think the real potential is going to be is if generative AI can start to identify market trends, such as rental increases in certain areas, potential leads for listings, and where the most in-demand areas will be based on trends,\u201d Pratt said.&nbsp;<\/p>\n\n\n\n<p>Once that happens, Pratt believes generative AI will be a real game changer for agents because it\u2019ll help them create more <a href=\"https:\/\/propertyonion.com\/education\/how-to-plan-your-real-estate-investment-strategy-for-2023\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"strategic approaches (opens in a new tab)\">strategic approaches<\/a> to listings and canvassing areas for clients, ultimately allowing them to work smarter, not harder.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>If you\u2019ve got a clear goal, it\u2019ll be really easy to find what you\u2019re looking for.<\/p><\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pratts_Advice_for_New_Real_Estate_Investors\"><\/span><strong>Pratt\u2019s Advice for New Real Estate Investors&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According to Pratt, to become a successful real estate investor, you first need to have a clear goal. Whether that\u2019s to live in a property, turn a bank loan into a tangible asset to get another loan, or simply park some money in a stable investment, you need to be sure why you want to invest in real estate in the first place. \u201cIf you\u2019ve got a clear goal, it\u2019ll be really easy to find what you\u2019re looking for,\u201d Pratt said.<\/p>\n\n\n\n<p>From there, you need to ask the questions: What are the property taxes in that state? What\u2019s the upkeep? What\u2019s the rent return? What\u2019s the market doing? Are people starting to leave or is it a market with industries coming in? For example, \u201cOracle moving to Austin, Texas, says that there\u2019s activity, jobs, and infrastructure coming in, and this may be a good place to invest.\u201d Pratt said, \u201cEducation is key.\u201d<\/p>\n\n\n\n<p>We also asked Pratt for his advice on how to network in real estate: \u201cLook for property events, go to open houses, and start getting a feel for brokers and how they work. It\u2019s free! You can always just go and say, \u2018Look, I\u2019m not investing in the next six months, but I want to get an idea of the market.\u2019 You\u2019ll start to build relationships that way.\u201d You can also go to free events sponsored by real estate offices and property auctions.<\/p>\n\n\n\n<p>In addition, Pratt recommended joining online property groups that provide some type of upskill or data, such as groups that list auctions, sales, or closing results. (Interested in the latest Florida foreclosure and tax deed auction results?&nbsp;<a href=\"https:\/\/propertyonion.com\/member\/register\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Register<\/a>&nbsp;for a free PropertyOnion.com account).<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>A recent high school graduate from Asia had come to Australia with $200 million that he received from his parents as a graduation gift. To get back at his older brother who had gotten $400 million for earning better grades, the boy wanted to buy up as much Australian land as possible.<\/p><\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pratts_Favorite_Property_Type_Craziest_Real_Estate_Story_and_Mentoring_Success\"><\/span><strong>Pratt\u2019s Favorite Property Type, Craziest Real Estate Story, and Mentoring Success<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>At the end of our chat, Pratt told us about his favorite property type. \u201cI love beachfront homes,\u201d he said. \u201cThe value that you get with different waves, sunrises, and sunsets every day is pretty incredible. But also, you get to see the creative ways people utilize a beachfront property \u2014 whether it be the gardens or a cliffside track to get down to the beach. People have got to be creative to make it work.\u201d<\/p>\n\n\n\n<p>When asked about his craziest real estate story, Pratt talked about a time when he worked at Raine &amp; Horne Group. A recent high school graduate from Asia had come to Australia with $200 million that he received from his parents as a graduation gift. To get back at his older brother who had gotten $400 million for earning better grades, the boy wanted to buy up as much Australian land as possible. \u201cHe came out, and there were helicopters flying over remote parts of Australia finding these remote cattle stations,\u201d Pratt said. \u201cIt was a wild ride for about a week.\u201d<\/p>\n\n\n\n<p>Lastly, Pratt talked about a time he met a young student in Sydney getting his real estate diploma. Pratt mentored him and offered him advice once or twice a month, and now five years later, he heads up one of the largest commercial property agencies in France. \u201cIt\u2019s nice to see,\u201d Pratt said. \u201cWe speak all the time, and he just sent me a picture of his Ferrari.\u201d Needless to say, the man\u2019s&nbsp;<a href=\"https:\/\/propertyonion.com\/education\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">real estate education<\/a>&nbsp;really paid off!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>James Pratt is a world-class real estate auctioneer \u2014 but not for foreclosures or tax deeds. No, Pratt auctions luxury homes. He holds over a hundred sale-price records, including the record for the highest sale&hellip;<\/p>\n","protected":false},"author":41,"featured_media":5290,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[662,12,619,665,534,192,661,663,664,67],"class_list":["post-5270","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing-articles","tag-2024-predictions","tag-auction","tag-chatgpt","tag-expert","tag-investment-strategy","tag-investors","tag-james-pratt","tag-luxury-homes","tag-mansion-tax","tag-real-estate"],"_links":{"self":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/5270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/comments?post=5270"}],"version-history":[{"count":3,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/5270\/revisions"}],"predecessor-version":[{"id":6052,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/5270\/revisions\/6052"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media\/5290"}],"wp:attachment":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media?parent=5270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/categories?post=5270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/tags?post=5270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}