There is a strong belief out there that a great Auctioneer must have the ability to Talk & Add up numbers fast, Give a long poetic property description and have a cabinet full of trophies…..Whist these factors help & in some cases be a little entertaining, the true skill & value of a Quality Auctioneer is – in my view – being lost….I have observed so many lost deals because of an Auctioneers lack of True ability.
I probably won’t win many friends with this article, but the truth generally never does….
So many agents get caught up in the hype & Rah-Rah of industry awards & rhetoric. I feel although Auctioneers are trying so hard to be poets & losing focus of the bigger picture.
I guess I can speak quite frankly about this as calling Auctions is not my only offering to my clients. This topic has been at the top of mind for some time and decided to put it in writing as some of the questions & pre-requisites of some of my new clients – coming from their misinformed & skewed views of what an Auction & Auctioneer is.
The 7 Essential Elements of a Skilful Auctioneer:
#1 Experience – Does your Auctioneer have ‘in-the-trenches’ Real Estate Sales Experience? (& if so, how many years?) Without this experience, there will always be a disconnection between you & the Auctioneer. Intimately knowing the Challenges & efforts that go into the whole campaign – Prospecting, Open Homes, Handling Objections, Etc – allows the Auctioneer to assist in multiple ways in achieving the ultimate outcome – Getting the Property Sold!
#2 Scripts – One sentence can make or break a transaction….Buyers & Sellers are hyper-sensitive when it comes to the transacting of Real Estate. A word or something said in jest or passing can very easily be misconstrued turning away a potential bidder. Worse still, you could say the wrong thing and land yourself in trouble with the law… If you develop skilfully crafted Scripts & Dialogue, the risks are almost removed – You need an Auctioneer who can provide to you the right words & strategy to maximise the outcome for you & your client. These words can’t just come out of an old textbook, or be the same words that have been used for decades – buyers have heard them all before – and are immune to them. They need to be well-crafted & proven.
#3 Negotiation – Anybody can learn to talk & add numbers up fast. However, this is not where the real value & skill lies. Having the ability to read people & situations (this can only come from experience) is vital – Being able to see 3-4 steps ahead, having proven strategies & experience is essential to your success. You have put too much work & effort into the day a result to slip through the cracks due to lack of skill.
#4 Compliance – Real Estate is full of Legislation….When running an Auction Campaign & on the Day, the legal requirements are a must…it is very easy to let things slip through the cracks as you, the agent – have so many other things to be conscious of. It is imperative that your Auctioneer is Completely up to date with current legislation and has the ability to offer ‘Fresh Eyes’ over everything to ensure compliance protecting you, your client & the buyer.
#5 Process – One of the biggest causes of an Auction to fail is that the agent doesn’t apply a detailed & structured process. Having this process allows the Agent to be Proactive at all times – it eliminates errors & keeps you on track to a successful sale. With the right process you will never miss an opportunity. With the right experience & skills, your Auctioneer should be able to guide you with this.
#6 Time – Saturday is an Auctioneers ‘Main Event’ – it is the day they generate all of their income. Most try to squeeze in as many as they can to maximise their income. This causes a MASSIVE problem…not all negotiations are quick. I’ve seen negotiations taking place at an Auction being led by the Auctioneer, unfortunately because the time it is taking & the Auctioneer has to run off to the next one, the right amount of time, effort & attention cannot be given – the Auctioneer then has to rush or worse still, applies too much pressure and burns the buyer &/or seller. If the negotiation is making progress & the property gets passed in due to time constraints, the momentum almost always is lost – costing the seller money or even the sale.
#7 Positioning – Not all Properties sell at Auction – A good Auctioneer should be able to read this early and start putting in place a strategy to set the property up to be sold very quickly after. The Role of an Auctioneer is NOT to just ‘Turn up to Call it & Sell it or Pass it in & Leave’.
I love the Auction Process – From Prospecting, The Listing Presentation, Handling all the Objections, The Marketing Process, Positioning the property to sell, The Negotiation & of Course – Calling the Auction. If you would like to master the whole process, please get in touch.
Educator & Auctioneer
0421 358 764
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