Get the most out of your auctions

I called an auction on the weekend that was a classic example of how an auction campaign is supposed to work. There were 3 offers from 3 different parties prior to auction. The offers gave excellent feedback to the vendors and a reserve was set at the highest offer prior to auction. The real time feedback from the market place had done it's job.

On auction day there were 5 registered bidders. Bidding kicked off quickly at $390,000. Only two of the bidders entered into the equation and without any hesitation it went in $5,000 up to $450,000, well above reserve price before the bidding stalled. The property was called on the market and promptly continued up to $460,000 and sold.

There was strong competitive and confident bidding. A fantastic result and a true credit to the way the agents ran the auction. With only one problem. The only people at the auction were the bidders. There were 5 parties there registered to bid and only 1 other group. No neighbours and considering the cul-de-sac location very surprising. While it was an OK crowd it was nothing like it should have been. The agency missed out on a fantastic opportunity to showcase themselves and their ability to sell properties in the current market.

While it was a textbook auction campaign the agency really did miss an opportunity for some promotion. Auctions as well as creating an opportunity to sell property also are a marketing tool for you and your agency. Why would you not get as many people to an auction so they can see what happens when you sell their home. It is your business on display in the most public way. You put all of the work in to get it right the least you can do is get as many people there as possible to watch it happen.

A large crowd only ads to the excitement and atmosphere of an auction. Regardless of how many registered bidders or what the outcome is likely to be getting a crowd there is a critical part of a successful campaign. If the auction goes off like the one on the weekend or if it is a flop the crowd still makes a better spectacle of the whole event and showcases your agency.
Make your auctions count!!!

Moving In Rooms

A question I have been posed recently by an office I am working with. They currently do 1-2 auctions per month scattered throughout the month. They are really keen to get them happening at the same time in rooms once a month. They had two concerns.

1. How do we get all of our auctions happening at the same time?
2. How do we get more auctions to make the in room auctions a better event?

I understand there would be plenty of agencies in the same boat looking to take their auction business to the next level.

1. Set a date. Roughly 6-8 weeks time.
2. They naturally throughout the month list auctions. When they list one they simply say that the auction date has to be X and they explain the benefits of waiting until then.
3. They go through all of their current stock and let them know they have a great event coming up that will give their properties a renewed vigour in the market place. Properties that need a price reduction are perfect for this. Try this "We need to adjust the price but rather than getting you to make a rushed decision now I would like to give you some time to make up your mind. Lets take the price out of the equation altogether and you decide on your new price in 4 weeks"
4. Push the event to all new listings coming on the market.

A simple 4 steps to go from 1-2 auctions to 5-10 and even more.

Hope this helps

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