The PROPERTY DOCTORS, Sydney Australia Novak Properties
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The PROPERTY DOCTORS, Sydney Australia Novak Properties
EP. 1428 The beginning of Novak Properties
Mark Novak didn't plan on launching his own real estate agency—necessity forced his hand after being fired over a property dispute with his boss. Within just two weeks, a 23-year-old Mark had gathered partners and established what would become Novak Properties. That was 2002, and now, 23 years later, the Northern Beaches agency stands as proof that sometimes the most unexpected beginnings yield the most remarkable journeys.
What makes Novak Properties distinctive? For starters, their decision to remain independent when franchises dominated the landscape gave them the freedom to develop their own systems and unorthodox marketing approaches. Mark recounts how they once created a provocative window display welcoming "hookers to the strip" when LJ Hooker moved to their street—marketing that would never fly under franchise constraints. More significantly, they pioneered a team-selling approach where every agent can sell every listing, splitting commissions between listing and selling agents to prioritize client outcomes over territorial battles.
Mark attributes much of his success to "biting off more than you can chew" through honest, substantial commitments early in life. These pressures created a focus that propelled both personal and business growth. Even after three decades in real estate, he still considers himself to be "practicing," embodying the philosophy that "gradual improvement is better than delayed perfection." Rather than expanding to multiple offices, Mark remains committed to incremental improvements and developing his team at their single location. His story demonstrates that sometimes our greatest setbacks—like being unexpectedly fired—can launch us toward success we never imagined possible. What unexpected challenge might become your greatest opportunity?
Good morning guys. Episode 1428, the beginning of Novak Properties here this morning with Josh and Mark.
Speaker 2:Let's go, I'm the ringleader, so I'm gonna.
Speaker 1:Yeah, we thought we'd start with something a little bit different than what we usually do for a Wednesday. I thought, coming back from you guys, coming back from Arik, and you know watching how much you work and move I thought it'd be interesting for our viewers to get an understanding of the beginning of Novak, your story, how it all happened, biggest ups, biggest downs.
Speaker 2:Do you want to start us off 2002 we?
Speaker 1:started.
Speaker 2:Wow.
Speaker 1:Yeah, yeah, 2002.
Speaker 2:It was out of necessity, I guess Never thought of starting a real estate agency. And we did. And it's what's that now?
Speaker 1:20, that's 23 years old goes quick when you're having fun, hey absolutely absolutely and what and what pushed you into going solo or opening up your own mark? What was that? That push there? That sort of said to yourself I'm gonna make that leap I got fired, really yeah and what and what and how long was that sort of process from being fired to going? Hey, I'm gonna go and start my own two weeks, wow, so it didn't take long.
Speaker 2:Well, I said I had to. So I got fired because it was a property dispute actually. So I was buying something off my boss at the time because he had, I was going to buy a shop for the property management side of the business, and um, and then we had a disagreement on price, so he threw everything off the table and marched me out the door no way way.
Speaker 1:What a crazy way to begin. And what did you go and start by yourself? Did you have someone with you or what was the team?
Speaker 2:So, yeah, very fortunate, because at that time I'd been starting to buy small percentages of the rent roll business. So pretty much the principle that I'm the entire business was selling down, had sold down the property management side of the business, looking to exit out of the business, and then he was negotiating with me and another salesperson in the business to take half-half of the sales business. But at the ripe age of 21, 22,. The other guy wanted 51% and me 49% and I was like, yeah, nah, that's not going to happen, it's got to be 50-50.
Speaker 1:Yeah, wow. And what were some of the biggest hurdles or issues you had starting in those first couple of months?
Speaker 2:well, the first, the first couple of weeks, they like, because we had we brought over some of the rental or the rental business of what we don't. So the partners I'd had I sorry, didn't answer that question the partners I had was a stockbroker, an accountant, three minority real estate agents in the business and my shareholding. So there was about six of us, seven of us that owned that rent roll side of the business and then I started that sales side of the business and snapped it on the side and then we moved to DY. So yeah, they were the partners.
Speaker 1:Yeah, wow. And why? Novak? Obviously your last name, but what made you want to go? Novak's it? Novak's what I'm going to run with.
Speaker 2:Yeah, because at the time there was no other agency. There was McGrath was taken, bell was taken. No, bell was nothing or not much. There was Di Jones, which wasn't much, but all the other major franchises. So there were 16 franchises in DY at the time. So we sort of didn't really have any opportunity there. So it was like, well, we sort of have to do independent. Um, and then we did.
Speaker 1:It was originally called the novak agency wow, and something that I'd probably find quite interesting asking you this In obviously being an independent, you don't see too many that sort of grow to the scale Novak has. What were your biggest challenges being independent? And then what were your selling points to clients being an independent agency?
Speaker 2:Look, we were sort of, I think we grew instinctively with our systems. So we weren't, we didn't just snap on systems because that's what the franchise gave us, because we didn't have a franchise. So I think we sort of grew instinctively with us with with our own homegrown systems. That that worked for us. Um, and then also, what was phenomenal was we didn't have to conform to anything a franchise would have to do. So you know, as you know, some of the stuff that we come up with with our marketing. I can't remember we wrote on our windows LJ Hooker DY, which was a big agency at the time. They were on the beach front of DY and they moved to Pitwater Road, which is the main road of our suburb, and we wrote on the front of our window we would like to welcome hookers to the strip and we had a big Las Vegas sign on the front underneath it, you know. So it looked like the Vegas strip. You know that sort of stuff we would never ever be able to get away with under a franchise.
Speaker 2:So it's pretty good because we could have ever be able to get away with under a franchise. So it's pretty good because without being a franchise, we could be unapologetic. And it's interesting now non-franchises I think I saw a stat the other day 61% are New South Wales and I think in Queensland they're 11%. I was having the conversation on the weekend with a Queensland agent. So it's been good. It's been good. But you know, franchise was definitely a thing when we started back in 2002.
Speaker 1:Yeah, wow. And what about? I think something that also really separates Novak apart from its competition is the way that your sales team sells. Where was the concept came from? Where, essentially, you had every agent selling, every listing and and and how did you come to that?
Speaker 2:we've always operated like that.
Speaker 2:It's probably an old-fashioned way of operating um where, and just just to just to um double down on what you said, so with our sales team, when, when a client chooses us to sell um their property, we um basically, you say to say it's a two percent selling fee.
Speaker 2:What we do internally is we bring, we bring the catch in and then we anyone who has a buyer within the office, any agent has a buyer in the office, has the ability to sell and get half of that commission, 50% of that commission, as an example. So we always thought that was in the interest of, of of the client, because it didn't make sense that a buyer walked through the front door of our office, met with Josh and then they liked four properties, but all four properties were with four different agents. Josh couldn't put that client in the car and show the client four properties. Most of the real estate offices you can't. They don't have that harmony or that agreement on split. So we found it was the best way to get prices because you know we're always competing on prices with different buyers on different properties and that's in the interest of the seller yeah, well, yeah, I definitely thought that um being coming into novak and and that being a new thing, um that that was really interesting to me and it definitely, it definitely works.
Speaker 1:um, obviously, having the experience here since I've started, that sense of competitiveness and bringing multiple buyers and databases together to one campaign definitely gets those results. So I definitely wanted to answer that question. What would you say? Your biggest successes or your first point after starting Novak and you sat back and you, you know, you smiled and you go, you know, well done, well done, mr Novak. Did you have a moment within the business or a point that you got to where? You know? You just thought I'm very happy at where I am right now.
Speaker 2:First sale.
Speaker 1:First sale, and how long did that take you?
Speaker 2:About four weeks, weeks, five weeks, wow and there's a guy called, uh, jeff oh, what was jeff's surname? And he had a two-bedroom unit in maramba avenue, um, and I sold it to some people who actually knew um at the time and first sale was like wow, this is cool feels real, yep, wow, fantastic.
Speaker 1:And was there anything else that, through your experience that people don't quite see, you know under the, under the cover, so to speak, of you know, of your experience in starting this journey that you want to share?
Speaker 2:think the best thing was just biting off more than you can chew, um, and I think that those bites that we've, that I've taken, have been um, honest ones. So you know, for instance, I think, if you, if you're going in, if you're taking your bite okay, let's just use a family home, for example if you're going in, mortgaging yourself hard and you're honest with yourself and you're buying the family home at the age of 25 or 30, um, I think you're fighting for something pretty, pretty honest and I think you're fighting for something pretty fiercely. And you know, you, you can afford to bite off more than you could chew, and and then then you follow through. So I think that the greatest thing was, you know, taking those big bites early in business and in life and in marriage and in kids and stuff like that, I think was a really nice set up. So, yeah, I think you know that's if I could help people. That's the number one thing I'd say.
Speaker 1:Yeah, and then I think Lisa's just tuned in 23 years of age. How does someone when I was 23, it was all about the weekend and friends how did you zone in and be able to operate such a beast at such a young age?
Speaker 2:exactly what I just said I had, because I committed to stuff early, I and it was honest stuff. I couldn't afford to turn left or right or deviate um, it was like make that commit and it was, you know. It wasn't like, oh, I'm gonna, you know, buy this, you know, race car, racehorse and win this race, or I'm gonna buy this stock and it's gonna do real real well. It was honest. It was honest, healthy debt, um, that I was taking on, or an honest, healthy commitment that I was taking on. So I think at 23 it was really. It was a really dumb move, um to doing, you know, doing something without having that knowledge, but I think in terms of the size, like the size of it and the lack of knowledge, but it was a really clever move because it was.
Speaker 1:It was honest debt, you know, and it was it was for good, you know, supporting good things yeah, wow, and yeah, of course, elise is saying again there that I think it's definitely stands for novak doing things differently and always innovating. I mean, um, even simple tasks you're constantly reminding us of do better plus one. So I definitely think that stands for novak and the brand and everyone else behind it. So thanks, elise, for sharing that. And, mark, was there anything else you wanted to add in in regards to the Novak story? What's your future? Is there anything else coming your way that you know bright and wonderful, that no one's done before? Any special plans, please share?
Speaker 2:I think, look, people always encourage us to go for a second office and I don't think that's, you know that's going to happen. It's always one office. I think, just grow and just regular and small increments. It's something we, just you know, I've always felt passionately about. I've always said something about the CEO of Toyota was, you know, gradual improvement is better than delayed perfection. So I think, just you know, just doubling down on that, servicing people better, looking after our Northern Beaches community better, just you know, just you know I often laugh when I have people on the phone or friend.
Speaker 2:People laugh like what are you doing? And I say I'm practicing. You have people on the phone or friend people laugh, they go, what are you doing? And I say I'm practicing, you know. So they go, what do you mean? And I'm like you're still practicing after 32 years, like yep. So you know, I just think that future is just to continue practicing and I really get a hell of a lot of joy with building and helping people around me, of joy with building um and helping people around me, not just in terms of clients but in terms of um, our crew, um, and seeing and developing um, that there's the skill set of people around me with what I know, and and I and and I find that's two-way, because you know these guys are also help helping me, um, so, yeah, it's just that, yeah, helping each other sort of thing yeah, wow, well, yeah, mark, well, thank you for sharing your story.
Speaker 1:I've got to say your um, your work ethic is something to behold. Not just saying that because you're my boss, but it is impressive. You'd never run out of fuel, that's for sure. So thank you for sharing your, uh, your story this morning, mark. It's um eye-opening and it's interesting to see under the covers of what Novak is, how it began and what's to come. So, thank you.
Speaker 2:Thanks, have a great day, see you.
Speaker 1:See you guys, have a great day. Have a great day.