Auction day tactics for agents to improve results

Auction day tactics for agents to improve results

Now that auctions are no longer a “walk in the park”, we have the opportunity to demonstrate value beyond the transaction during the auction process.

Now we can complain about things beyond our control, such as interest rates, weather, and increased inventory, or we can improve things about what we do to increase the likelihood of success. Or, at the bare minimum, show our sellers that we are taking action against the changing tide.

And as far as buyers go, without denying what’s going on in the market or trying to pull some script from the 90s, we need to use the bidding process to recreate that level of urgency to get them out of the close and take measures.

Below are seven things you might want to add to your arsenal!

During the campaign:

  • For buyers, creating some form of urgency is becoming increasingly difficult, and there is far too much media noise to deny much of their logic. But this is where we need to shift our conversations with them from the realm of reason to a place of emotion, namely that emotion that affects us all: regret. For buyers who don’t commit to attending an auction or writing an offer, try using this: “Spend 20 minutes finding out for yourself, or risk living a lifetime of regret when you discover afterwards that you could have obtained it at a level with which you would have been satisfied…”
  • By offering this perspective, emphasizing that the only cost required to avoid this regret is 20 minutes on auction day, you are giving them little reason to attend. So whether they think they’re on a shoestring budget or are just “playing the game,” chances are you’ll see more signups on this script alone.
  • For sellers, you need to make sure your weekly meetings have a solid structure to ensure that not only are buyer feedback as detailed as possible and every buyer accounted for, but that you have enough information about all new comparable properties that have arrived. on, as well as any price changes on competing properties. We know buyers will look at the market the same way, so we need to play that with our sellers so they understand the full landscape on both sides.
  • For the campaign, the team should focus on finding bidders, not just buyers. The temptation is to accept an offer before the auction, and if one of the agents in the office strays from the official line, that could be a problem. Now if an unconditional offer comes in at a fantastic level, then of course don’t reject it, but if buyers are asking if offers are being considered before then we have to mention that transparency is what sellers want, and so if they make an offer, then we (the agents) would have a duty to ensure that everyone makes an offer.

The problem for the buyer? This puts them in competition – without said transparency – not ideal for them!

On the day:

  • Everyone needs a role to play in the day! Activity breeds activity, no more than at an auction, and you must fully commit to the event, whatever your expectations. Not only is it important for the seller to see from inside the house, but the neighbors (of whom there are a lot right now) who are trying to get some kind of control over the value of their asset, so the energy you release will act as a billboard to your future customers!
  • Be careful with your seller/seller offers! Fine line between casting the net far enough and leaving yourself too short with these, especially if you only have one bidder. You might want to consider placing the bid towards the high end, and from there…
  • Selling the “right to bargain” is imperative, both during and before the auction, if you want people to feel it is in their interest to bid. Also in this case it would be desirable to have a link to the relevant part of your legislation available for posting; that way they aren’t as tempted to ignore it.
  • Don’t be afraid of a “one bidder” bid. After all, you only have one house to sell to them anyway! In these cases, you must show a degree of confidence in the value of the property. If you show desperation, you could face a losing battle, but it’s safe to say that in most cases conditional buyers will arrive, so the lead that hardcore buyers have on them cannot be wasted! Don’t necessarily aim to sell it under the hammer, but organize it so that the negotiation starts from a much closer point. Be upfront, place a higher supplier bid, and announce that conditional interest will be on the way. Offer the bidder to “match or beat” to earn the right to keep any other buyer from being entertained and to restore the initiative to that buyer to at least enter into negotiations with your seller at a appropriate level.

Andy Reid is an auctioneer and director of Sold By Group.

Auction day tactics for agents to improve results

lawyers weekly logo

Last update: July 29, 2022

Posted: August 01, 2022

Comments are closed.