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Selling Property Through Auction Mike Jones, CAI, GPPA, BAS President – United Country Auction Services.

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Presentation on theme: "Selling Property Through Auction Mike Jones, CAI, GPPA, BAS President – United Country Auction Services."— Presentation transcript:

1 Selling Property Through Auction Mike Jones, CAI, GPPA, BAS President – United Country Auction Services

2 Why Consider an Auction? When bidders compete, sellers win Set time and place of sale Comprehensive targeted marketing Buyers arrive ready to buy No negotiations Competitive bidding Governmental and judicial requirements can be satisfied Works in good and bad economic times

3 Real Estate Auctions Today Whats Hot and Whats Not Residential Commercial Land Condos Recreational Trophy

4 AC The Blended Method

5 Auction Formats Reserve Auction A reserve is the minimum value the Seller agrees to accept in the auction agreement. The reserve is normally NOT disclosed, it is simply stated that the property is being auctioned subject to a reserve Reserves should be set as low as possible. It should be the Sellers BOTTOM LINE. If the highest bid is less than the reserve, the Auctioneer can suspend the bids, pull the property or try to get the Seller to accept the highest bid. If no offer is accepted, the Broker can try to negotiate the deal with the highest bidder after the event. Absolute Auction An auction in which the property is sold to the highest bidder regardless of the amount of the winning bid.

6 Is my Listing a Good Auction Candidate? Step 1 : Determine Sellers Fit Step 2 : Assess Sellers Motivation Reason for wanting to have an auction Timing Requirements (when they NEED to sell) General Conversation (really listen to their answers) Step 3 : Understand Property Sales & Marketing History Step 4 : Establish Seller Expectations Marketing Expectations Obligations (debt, litigation, liabilities, etc) Pricing Expectations Step 5 : Confirm Property Information

7 Is my Listing a Good Auction Candidate? General Disqualifying Factors : Unrealistic pricing expectations Property is pending litigation Long listing period without price reductions Seller overbearing/hard to work with/difficult Seller has hired multiple qualified auctioneers & has been dissatisfied with all of them Unwillingness to give control to the Auctioneer Multiple past failed auction attempts Seller prediction of failure Unwillingness to provide upfront marketing funds Unwillingness to fix bad condition issues Determining seller has not disclosed significant property information

8 Broker/agent auction program Broker / agent commission stays in place per agreement Broker / agent can represent a buyer at the auction Broker / agent assists in representing the property Broker / agent has access to all inquiries and prospects generated from auction process Broker / agent has access to additional sellers who want to discuss selling their property Broker * Agent Compensation


10 Typical Auction Timeline 30 Days Prior to Auction 45 Days Prior to Auction 75 Days Prior to Auction 90 Days Prior to Auction Days Post Auction 3 Days Post Auction Auction Day 14 Days Prior to Auction

11 Client Consultation Identify the sellers goals, motivation, timing and pain points Situational analysis – Ability to fund marketing campaign – Format: Absolute vs. reserve auction – Driving factors of the auction Property and client qualification for the auction method of marketing

12 Research Market analysis Market acceptance of the auction method of marketing Buyer & capital availability Demand for product Timing - seasonality Competitive analysis Are the properties commoditized (i.e.: flooding the market with hundreds of single family lots in one sale) Similar offerings in the marketplace Past performance of similar auctions Creative Brief Data collection tool that prompts strategy behind a marketing plan

13 Seller Funded Marketing Campaigns Seller fronts marketing expenses Prepares seller for auction and strengthens engagement in the process (makes a better seller) Minimizes risk for broker/agent/auctioneer in event of no sale Depending on property type and location, marketing plans can range 1-3% of estimated value (or more) Advertising Marketing Strategies

14 What Are Goals and Benefits of Auction Marketing? Convey an opportunistic (often urgent) message to buyers Channel buyer attention to a central source (your website or phone) Drive buyers to your auction Convert bidders to buyers Sell the property Build your internal buyer database for remarketing purposes Increase Uniteds brand awareness Impressions in the market with Uniteds logo/name on them, many times funded by the seller

15 Strategic media planning Rate and placement negotiation Proposal preparation and submission Strategic analysis and application Revisions to meet client expectations and budgetary constraints Marketing Campaign Development

16 Campaign Execution Timeline establishment and management Media buying Timeline establishment & management Vendor management Quality control Creative direction Coordination of design, interactive, PR and media team Posting to third party websites Development, scheduling and deployment of third-party blasts Copywriting and editing Submitting proofs to client and applying edits

17 Day of Auction Professionally branding your auction is one of the best opportunities to create differentiated customer value through an integrated process Bid cards Signage PowerPoint (PC) or Keynote (Mac) Pens Folders Attire Corporate collateral Leave a lasting impression Bidders may be interviewing you for a sale of their property without you knowing

18 Post Analysis Reporting Back end reporting outlining ROMI regardless of auction results Outlines responsible and transparent process Remarketing opportunity to your seller A professionally compiled post analysis is a significant differentiator

19 Auction Resources Available to United Experience, product knowledge and a range of service offerings are everything when conducting a successful auction. By giving you access to a wealth of experience and knowledge that is unmatched within the industry, United Country Auction Services is uniquely qualified to meet your needs on a local, national, and international level. Through our vast network and comprehensive services, were able to offer you a clear and simple path to success. As part of the United Country Real Estate network, United Country Auction Services provides you with unparalleled expertise throughout the sales process. In-house marketing services firm – Enhanced Marketing Solutions

20 Auction Resources Available to United Strategic marketing-plan development and implementation Web site development and search engine optimization (SEO) Lead generation and management List of confidential buyer prospects Access to new media and technology, including simulcast of online auctions and multi-parcel auction software Warranty insurance for residential sales Valuation services

21 Engaging with a professional auctioneer is simple Mike Jones, President of United Country Auction Services, is at your disposal and will work with you to ensure youre getting professional and reliable advise Locate a seller willing to explore auction services Contact Mike Jones at Set up meeting or conference call with seller, Mike and yourself Process will move forward from there, if applicable Next Steps

22 Selling Property Through Auction Mike Jones, CAI, GPPA, BAS President – United Country Auction Services

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