How To Select The "Right" Auctioneer for your Real Estate Business

As we continue to fight our way through this struggling economy more and more Realtors are reaching out for marketing options that will assist them in accelerating the sale process for their clients. As a result, we are frequently asked "how do I go about selecting an auctioneer"? This process should not be difficult for you, however there are a few key factors to seriously consider as you search for the "right" auctioneer for your business. Here are the top 12 considerations:

1. Chemistry. It is critical that you identify an auction professional that you feel comfortable working with AND that you trust completely. You will be embarking on unknown territory and you will be following the lead of your auction professional. TRUST is key to your success.
2. Expertise . You need to identify an auctioneer that has the EXPERTISE necessary to sell your listings. Although you may know someone who is very successful selling antiques, cars, household items, etc., don't expect them to naturally have what it takes to succeed in selling your real estate. Extensive real estate expertise is a must.
3. Experience. Don't be a guinea pig. Your clients won't be happy if they become your latest experiment. You need to identify an auction expert who has LOTS of EXPERIENCE. Someone fresh out of auction school is NOT prepared to sell your listings. It takes time to become a good auctioneer and it isn't as easy as it looks. Find a proven player.
4. Professionalism. Contrary to popular belief all auctioneers are not "cowboys". When in Rome...do as the Romans. If you live in Texas where cowboy boots and ten gallon hats are customary then that will work for you in your market. If not...find someone who fits your professional "profile". Your auctioneer will be a reflection of you.
5. Reputation. Don't believe everything you hear. Ask for references and FOLLOW UP with them to get a good idea of how your auctioneer interacts with clients and what the overall feelings are at the end of the day. You can't afford not to do your homework.
6. Credentials. Most states require auctioneers to hold a professional license. Inquire about licensing and confirm that your auctioneer is in good standing within your state. Most of the "top notch" auctioneers will also hold the CAI designation which is an advanced educational program offered through the National Auctioneers Association.
7. Availability. In order for this service to be blended into your core business, you will need to identify an auctioneer that will be reasonably available to you throughout the auction marketing process. Auctions are new to you and the process can be very hectic. You WILL have questions and need guidance. If your auctioneer isn't reasonably available to you then you might become unnecessarily uneasy about the process. Define your working relationship BEFORE you move forward.
8. Negotiate. I am amazed at how many real estate agents believe that they aren't compensated if their listing is taken over by an auctioneer. Although MANY auction firms will require that you delete your listing (for them to take over) and expect you accept a referral on the sale IT DOESN'T HAVE TO BE THAT WAY. I have managed over 4000 auction transactions and I have NEVER removed the agent or negated their listing fees. Look at your options and negotiate the transaction! It should be a win/win for all.
9. Style. Although the auctioneer will be in control of the auction promotion, it is a good idea to review some of their marketing materials before you make your decision. Keep in mind that auction promotion is VERY BOLD by design but it doesn't have to be unprofessional.
10. Timing . You will want to specifically address timing relative to your auction needs. A typical well-managed auction marketing program will take approximately 5-6 weeks from the time your seller signs up for the auction to the time you are at the block. Any auction campaign that is considerably shorter or much longer is reason to question. Make sure that your auction is a priority for the auctioneer and that they have time to accommodate your needs within a reasonable time frame (especially in this market).
11. Branding . Auctions are a great “added service” for your portfolio and although you will be working with a proven player, do not lose your identity as part of the process! If you are going to add this option into your business then you should be gaining recognition for doing so. Insist that your name and broker information is included in all advertising and ask that you be able to keep your sign in the yard when they add theirs.
12. Closing Process . It isn’t safe to assume anything. Determine who will escrow the deposits, who will be closing the transaction, what Title Company will be used, who will be tracking the transaction to closing, how forfeited deposits will be distributed, etc. These details need to be discussed before your first transaction. There could be great differences in the way the transactions are managed by your auctioneer and you need to know before you’re headed to closing.

Adding auction services to your core real estate business is a must in this market. To ignore this option is to walk away from business. Don't waste any more time contemplating the possibilities. Use this checklist as a guideline and get to work! Time is money in this market.

If we can be of assistance to you throughout the process feel free to email your questions to info@auctionlearning.net. Good luck!

History Always Repeats Itself

Washington, DC, Apr 24, 2008

Land acquisition deals mimicked the madness of the Gold Rush as builders and developers sought to keep up with the demand for new homes gobbling up and competing for land throughout the early 2000's. Unfortunately, with a real estate market that appeared to soften overnight, many builders are now left holding new homes and buildable lots with little hope of saturation over the next several years.

Mitchell & Best Builders, a Maryland based, award winning 2nd generation builder, was ecstatic to have acquired a 849 acre farm in western Loudoun County, VA at a time when new homes were selling much faster than they could be built. Unfortunately, the rezoning and subdivision process outlasted the market and they are now left with over 100 single family lots with buyers few and far between. Mitchell & Best has scheduled an auction event to generate interest and produce sales quickly. Just days into the auction campaign buyers are submitting contracts with the hope of buying their lot long before the auction event. A testimony to the power of aggressive marketing campaigns in a sluggish market and a sign that there really are ready, willing and able buyers out there.

"Many people are under the impression that auctions are a "give away" strategy. What they don't realize is that the market determines the price regardless of the sales method used to get there", said Gloria LYNN Gardner, Corporate Auctioneer for HomeLand Auctions, the firm hired to conduct the sale for Mitchell & Best. "We speed up the sale process and create a competitive environment so that sellers have the opportunity to see the market speak for itself. At the end of the day the decision is up to the seller as to whether they accept what the market has to say or not. We don't determine the market, we just bring it to them and make it speak", said Gardner.

"Auction is all about the marketing. We do for real estate what a 4th of July sale does for a retailer. We set the date and time, we set the terms, we tease the consumer away from the competition, we advertise it like crazy and we sell to the masses. The auction puts a different spin on the transaction allowing the buyers to feel much more in control of the process. It's a win/win for all and precisely what the doctor ordered for this market", said Gardner.

Gardner is considered to be one of the leading auction experts in the broker/builder world Prior to launching HomeLand Auctions to accommodate national auction needs, Gardner co-founded the Auction Department for Long & Foster Real Estate, a mega broker with over 200 offices and 20,000 agents. Long & Foster was recognized as leader in the real estate auction world just a few short years after rolling out this innovative service throughout their region in 1994. Though there was little interest in auction throughout the real estate boom, Gardner is working with Long & Foster again to assist in the re-introduction of auction to their agents, clients and customers and Gardner has a long list of brokers ready to follow suit.

The Auction Department for Long & Foster was strategically positioned within their New Homes Sales Division in order for them to offer builders accelerated marketing campaigns to assist in moving inventory throughout the last slow real estate market. Together the team has conducted very successful auction events for Ryland Homes, Equity Homes, Morrison Homes, Washington Homes, M/I Homes and many more. Builders are just now re-considering the auction method as a viable tool in the aftermath of a heated market. "History always repeats itself&it was just a matter of time", added Gardner.

SOURCE:
HomeLand Auctions
4/24/2008 20:35 AA ET
www.HomeLandAuctions.us

CONTACT:
HomeLand Auctions Gloria LYNN Gardner/Corporate Auctioneer 877 668 6131 auctioneer@homelandauctions.us

Agents Flock To Auction Training

Agents Flock to Auction Training

Web cast training now offered to keep up with agent demand

In an effort to accommodate the high demand for auction training, The Institute for Auction Learning is launching the first live webcast designation program. Participants will receive their Certified Auction Specialist designation.

Real estate agents nationwide are flocking to become Certified Auction Specialist so that they are better equipped to assist clients and customers in this ever changing market. In order to accommodate the nationwide demand for this Certification program in the most efficient manner, it is now being offered via web cast. "This market is waiting for no one. Agents understand that they need to be equipped to assist clients and customers quickly and they're willing to take the steps necessary to get there as soon as possible" said Gloria Lynn Gardner, founder of The Institute for Auction Learning.

The Certified Auction Specialist (CAS) designation program, the first pro-broker program of its kind, is available exclusively through The Institute For Auction Learning, and is taught by Ms. Gloria LYNN Gardner, Chair of the Auction Forum for NAR and Corporate Auctioneer for Long & Foster. Gardner co- founded the Auction Department for Long & Foster in 1994 and continues to assist the company with auction services. "As a result of a market that seemed to turn overnight and grows more challenging each day, sellers are very concerned about the time it may take to get a property sold and the equity that may be lost as a result. The auction method creates a sense of urgency on every sale everywhere and can bring a seller to closing in as little as 30 days. In most states the lender will use this same method to bring a property to foreclosure. Agents with auction tools in their arsenal will be prepared to show the bank the market value of the property BEFORE they take it back which can subsequently assist in working through short sales more efficiently", said Gardner.

This designation program was introduced in October of 2005 and has already conducted training to thousands of agents across the country. "We have trained some of the top agents with leading brokerage firms; Long & Foster, ReMax, Keller Williams, Weichert and more. Our services are being expanded to keep up with the demand brought upon by current market conditions" said Gardner. This web cast program is the ideal venue to bring auction education into offices almost immediately. It's never been easier to become a Certified Auction Specialist. About Institute For Auction Learning The Institute For Auction Learning was created to address the demand throughout the brokerage community for auction education. "Out of the multitude of educational programs offered through the National Association of Auctioneers and the National Association of Realtors, none of them specifically address real estate agents adding auction services as part of their core business. We have become the premier auction educational resource for real estate agents nationwide," said Gardner.

The CAS designation program will prepare the real estate agent to identify an auction candidate, have a clear understanding of the various types of auction options available, auction law as it pertains to real property being sold through this method, a detailed understanding of the marketing approach to auctions, what compensation programs are available to them and how to identify the qualified auction firm to assist in bringing forth the auction results for their clients. The Institute For Auction Learning is based in Washington, DC but conducts seminars nationwide in training facilities provided by sponsoring brokers. "At the conclusion of this course the agent will not be trained to conduct auctions as an auctioneer. Instead, the agent will have broadened their horizons and branded their business to include every viable method of selling real estate," said Gardner.
SOURCE:
The Institute for Auction Learning
4/16/2008 11:34 AA ET
http://www.auctionlearning.net/
http://info@auctionlearning.net/
CONTACT:
For more information contact The Institute For Auction Learning @ 877-668-6131.

The Best Real Estate Appraisal

We are all familiar with the appraisal process as it relates to estimating the value of a property and how this process is entirely based upon history. However, with a market falling fast can you really use old numbers to gauge values moving forward? Any property is worth what someone is willing to pay you for it…period.

Although an appraisal is an educated guess of what a property should/could sell for, they aren’t worth the paper they are written on if nobody is willing to buy for the price the appraiser put on it. The very best appraisal available is an AUCTION where buyers and sellers come together for the purpose of determining fair market value through the competitive bid process.

What more could you ask for?

For Sale vs On Sale

When is the last time you visited a store for the sole purpose of taking advantage of a sale? Furthermore, when is the last time that you took advantage of the opportunity to “get a deal” and spent more money than you planned on spending? If you’re like most people, you felt so good about the money that you “saved” that you spent more money than you planned to spend. Retailers (and auctioneers) bank on this side of human nature. Whatever it is that you planned to buy was available in the store 7 days a week, 365 days a year but it wasn’t until you perceived a bargain that you were drawn into spending money. That’s the difference in being “for sale” or “on sale”.

It doesn’t matter what you’re selling…what matters is your sales strategy. Throughout the hot market it didn’t take a whole lot of strategy since everything in any condition sold as fast as it hit the market. Today is a very different story. Today we are in a market where most buyers are waiting for the other shoe to drop. With prices falling fast the buyers are trying to wait it out until it hits rock bottom. Can you blame them?

If you’re in the market to sell, you can’t afford to wait. Each day that you are not sold means less money you’ll see at closing. Auction does for real estate what a 4th of July does for a retailer. In this market you need to apply a sales strategy that will appeal to the masses. Consider being “on sale” instead of “for sale”…think AUCTION!

Agents Equip for the Down Market

Certified Auction Specialist Designation Program is Leading the Way

Washington, DC - May 5, 2006 Real estate agents nationwide are preparing to offer auction services by participating in a training program designed to equip them with the education and auction tools needed to offer this alternative method of sale to their clients. It is anticipated that the barrier between real estate agents and auctioneers will finally be broken by offering educational resources to the agents that are often excluded from participating in an auction transaction when it transfers from a traditional listing to auction.

The Certified Auction Specialist designation program, the first pro-broker program of it's kind, is available through The Institute For Auction Learning, and is taught by Long & Foster's Corporate Auctioneer, Ms. Gloria LYNN Gardner. Since 1994 Gardner has assisted the Long & Foster Auction Department in the successful sale of thousands of properties using the auction method of marketing as a conduit for a timely sale. "As a result of a slow down in the market, many sellers that have made financial decisions based upon hot market conditions are now seeking creative campaigns that will assist them in recreating a competitive environment with a quick turnaround. The auction method creates a sense of urgency on every sale everywhere," said Gardner.

About The Institute For Auction Learning
The Institute For Auction Learning was created to address the demand throughout the brokerage community for auction education. "Out of the multitude of educational programs offered through the National Association of Auctioneers and the National Association of Realtors, none of them specifically address real estate agents wanting to offer the auction option as part of their core business. We have become the premier auction educational resource for real estate agents nationwide," said Gardner. The Certified Auction Specialist designation program will prepare the real estate agent to identify an auction candidate, a clear understanding of the various types of auction options available, auction law as it pertains to real property being sold through this method, a detailed understanding of the marketing approach to auctions, what compensation programs are available to them and how to identify the qualified auction firm to assist in bringing forth the auction results for their clients. The Institute For Auction Learning is based in Virginia but conducts seminars nationwide in training facilities provided by sponsoring brokers. "At the conclusion of this course the agent will not be trained to conduct auctions as an auctioneer. Instead, the agent will have broadened their horizons and branded their business to include every viable method of selling real estate," said Gardner. For more information contact

The Institute For Auction Learning @ 877-668-6131
Website: http://www.auctionlearning.net