The real estate industry, similar to most professions, has top performers that often times set the standard. In recent years, a consistent theme has become more apparent across the leading non-urban brokerages — the ability to successfully provide auction services for clients.
Historically, the auction method of marketing has been more prevalent outside urban markets in rural parts of the United States. For example, vacant land located in agricultural areas has long been offered to the marketplace at public auction. However, now we are seeing an increase in auctions offering all types of real estate in the country’s more populated areas, including ones in which auctions are a fairly new concept for consumers.
This trend is primarily being driven by the real estate organizations and brokerages that are broadminded leaders within the industry. One great example of such a company is Kansas City, Missouri based United Country Real Estate. In 2007, the company invested heavily in developing a full suite of services built around the auction method of marketing. This included hiring industry recognized auctioneers to lead the new initiative.
United Country Real Estate | Auction Services allocated millions of dollars to provide its affiliates auction technology, marketing and training solutions. Having the foresight to recognize the auction method of marketing as an increasingly valuable asset in real estate has paid off big time for the company.
Relying on Auction Services Can Bring About Impressive Results
Consider the following case study as an example of what’s possible with United Country’s auction offerings. A traditional West Texas real estate broker purchased a United Country office to gain access to auction services, as well as other benefits and support provided by the company. The broker had a long history in traditional “for sale” real estate transactions, but very little knowledge about auctions. Although, he did have a vision for providing such services in his market area. With proper training and assistance from United Country | Auction Services, his first two auction events produced almost $6 million in live multi-parcel auction sales of agricultural land and residential homes.
Other brokerages across the nation are now following suit, encouraging their members to become more educated about auction marketing. There’s a lot to auction education, from understanding the auction process to conducting an online or live event, and also grasping the benefits of it all. Shawn Terrel, president of United Country Real Estate | Auction Services, was recently quoted as saying, “It is important that real estate professionals have a better understanding of the auction method of marketing before offering (it) to their clients. The quickest solution in an urgent situation is for a broker to work with a seasoned auctioneer.”
Terrel went on to say, “We recommend to our brokers and agents that they attend a professional auction school if they plan to provide auction solutions to their customers. This training will establish the educational foundation for them to offer a viable solution to property owners, while having a basic understanding of the auction process.”
When recommended by a licensed real estate broker, auction services are often considered professional consult by the customer. That client is entrusting their property and the prospective outcome of an auction event to the broker suggesting it.
Most successful brokers and auctioneers already know the key to a rewarding career and long-term relationships resides in placing their clients’ needs first, and not promising beyond their capabilities. If you’re not comfortable providing auction services, it is wise to bring in a seasoned, professional auctioneer to assist. This can allow you to build a good working relationship, gain valuable insight and eventually step up and provide auction services on your own.