Educating Buyers on Auctions

I have been working with a lot of agents of late who simply say "auctions don't work in our area". When asked why the answer is usually the same. People just don't get them here. When asked what the outcome is for any auctions in the area the answer is always there that was no bidders.

It is an expectation of a lot of real estate agents that by simply setting a date and turning up on auction day that it's enough. That buyers know what is going on and understand how the process works.

How long does it take to convince a seller to auction their home?? Usually a 1-2 hr listing presentation then as a bare minimum weekly face to face meetings, weekly written communication and daily phone/email or sms communication over the next 4 weeks to ensure that the auction runs smoothly on the part of the vendors. In total between 5-8 hrs spent with your vendors over the 4 weeks. How much time do you spend educating your buyers about the process. I would think that if you are spending more than 30 mins with each buyer than you are above the norm.

Your vendors took 2 hrs to convince then 4 weeks of reassurance. You ask you buyer once when they visit the home "Is this what you are looking for?" There needs to be some serious education on the part of the buyers so that they as much as the sellers understand what is happening through out the process.

You have a vendor management plan with your auctions. Sort out the buyers. It doesn't matter how good your communication is with your vendors over the 4 weeks if you have no buyers there your efforts have been wasted.

With first home buyers and investor nights proving popular at the moment would it not make sense to run, specifically for your buyers an information evening on how to buy at auction. Whatever your market place better educated buyers can only be a good thing. Have your finance broker turn up and talk about what needs to be done in order to bid at auction. Have a solicitor talk about the legalities of auction. Have an auctioneer talk about what will happen on the day and the benefits of buying at auction for them.

Better educated buyers mean better auctions. Have a clear buyer education strategy in your office and you will improve your auction success