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Do you like movies?
Until very recently, we have been somewhat spoiled at the coal face of auctions over the last few months. It has been a tremendous ride full of action, much like a Hollywood blockbuster.
However, the market that we are going to face in 2022 represents a market that will require us to do more work in order to earn our keep. Not only that, but we also need to demonstrate a much greater level of awareness if we are to prevent any major concerns from coming to fruition.
Like most victims in a horror movie, plenty tend to wait until the shit hits the fan before making any decisions or having any tough conversations, i.e. “let’s deal with the problem after it passes in”.
And with the level of difficulty at the coal face rising, anyone holding a gavel who isn’t putting work into their craft will undoubtedly start to have a detrimental effect on the brand’s reputation.
So instead of falling into the same reactive cycle that others do, why don’t we try to use available knowledge and skill sets to get ahead of the trend, helping our clients to better navigate a potential downturn?
Here are a couple of lessons from movies that may give you some clues as to how you can perform better on auction day as a team.
- The ‘Moneyball’ approach to auction day
This revolves around the concept that the whole is greater than the sum of the parts.
I get asked this plenty of times: “Should the listing agent call the auction?”
To me, that is a bit like asking, “Should my doctor look after my teeth as well?” or “Should a police officer also put out the burning building?” Sure they are in similar fields of work, and they may have an understanding as to how to crack on, but their skill sets are not specifically equipped to handle and excel with the job at hand.
It is a general misconception that a good sales agent should make a good auctioneer. Sure they play on the same field, but the function of each position on auction day is very different.
The listing agent has too many hats to wear and too many people who need their direct attention, i.e.:
- Multiple buyers who want their attention individually
- Neighbours who may become future business
- Poor vendors who are experiencing heightened emotions and need support
Plus a team that needs some form of directional leadership. So instead of trying to play every position on the field, why not make sure that you have the right skills for the right positions?
As for the craft of auctioneering, I understand that some people feel that it’s the best billboard for their own personal brand, but if you’re not professional enough to be practising, training and improving as an auctioneer, then you shouldn’t be out in public. The crowd can see you’re trying to be something you aren’t, and if you look like an amateur in any way, this can adversely affect your reputation and future business.
Like that great movie with Brad Pitt, the listing agent should be making sure that they have the best person focusing on the auction call and that they have got a strong focus on the very different skill set required to handle a call during a more challenging market.
This, in turn, allows the agent(s) to focus on the job that they’ve been working on for the duration of the campaign, which is engaging buyers emotionally with the property to the point that they’ll bid.
Each position gets the focus it deserves, and working together in harmony will bring more home runs for you and your clients!
2) The‘8 Mile’ bidder strategy
Any agent worth their salt can see the challenges coming before they arrive, but they’ll try to avoid the issue until they absolutely have to.
In the film 8 Mile, Eminem’s character goes into a final rap battle and wins because he decides to rap about his own shortcomings before his opponent gets a chance to.
The lesson here is that, instead of hoping that these challenges aren’t going to come from potential bidders, go on the offensive with them and give yourself a shot at preventing any spanners from being thrown into the works.
It’s pretty straightforward too! As long as you can offer a genuine solution to said concern (because just pointing out problems by themselves isn’t ideal!), then bidders will be less inclined to try and derail the auction.
Andy Reid is an auctioneer and the head of training for Century 21 and Better Homes and Gardens Real Estate Australasia.
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