How to use auctions to create more listing opportunities

Current interest about the market from home owners is high not necessarily with an immediate desire to sell, but because there is so much conflicting information out there that the desire to engage with agents who offer relevant value is much higher than in more predictable years.

I’m not sure whether it’s the right time to ask home owners to sell on the first interaction, but the hunger for information makes it a lot easier to initiate a potentially fruitful dialogue.

In particular, the volume of neighbours and onlookers that I’m seeing at the coalface on auction day is simply huge! So, it makes me wonder — how many future opportunities are you currently creating on auction day?

Open your eyes

Do you have a KPI around volume of listing opportunities booked from something as public and engaging as an auction? With the amount of extra intrigue that the public is showing in the market at the minute, particularly at an auction, there should be an organic assumption that there will be future opportunities in attendance.

Some fear an auction because of the variable nature of the outcome; however, if you flip the script and use it as a chance to demonstrate your knowledge of the market and professionalism, then the outcome should hold no fear at all.

Pre-auction conversations

Inviting neighbours needs to go beyond “come to our auction, we have coffee!” You have a chance to provide multiple points of value at various levels, starting with the simple truth, which is that whatever happens at the auction, the ultimate outcome will have a direct impact on the value of their biggest asset, whether they like it or not!

If the auction isn’t looking that great, then instead of not inviting them (or worse, telling them that you’re expecting action), tell them that you’re expecting a challenge, but then take the chance to educate them around the auction only being a part of the process and that you have the contingencies to handle whatever the market throws at your clients.

Inform the neighbours that the auction is designed to at least set the bar and that you have a duty to make sure that the value of the area is protected as best as possible. Explain the five potential outcomes to them so that they have a more complete picture of what could happen.

If they can’t make it? Offer to send the “story” of the auction to them. They will have a level of interest, so offer to be the “post-match reporter” by sending them a quick video via SMS with a report on the auction as it unfolded. Highlight challenges and explain what happens after the outcome (contracts if sold, plan of attack if not).

On the day — you’re ALL on display!

I cannot stress this one enough — every single one of you at the auction will be getting judged on behalf of the brand. Therefore, it is critical that everyone who attends the auction has got a good grasp on what happens throughout the auction, as well as the solution to whatever the outcome is.

To make life easier, design a visual guide to the process that you can hand to those watching. Neighbours aren’t generally that fussed about getting a brochure, but they’re more likely to take something that can give them some useful information, like a matchday program.

Always offer value at the end

Instead of just offering a business card, offer frictionless communication either via SMS or by dropping off some information later that day. Some examples of good, relevant content could be things like:

• Summary of attendance numbers at the auction (or across the day if you’ve had multiple opens), along with a “thank you” for their attendance and interest.
• If it sold – the type of buyer it sold to, i.e. not just saying that we have buyers left over, but providing context that affects them like investment versus owner-occupier, demographic etc.
• If it didn’t sell, tell them with confidence what the next steps are, and offer to show them through the property so that they can perhaps compare their house to the current listing.

They might have someone they know who may come in as a buyer, but I can almost guarantee that they’ll want to make comparisons between the subject property and their home, and that would serve well as good price feedback for your seller!

It’s safe to say that we allow way too many opportunities to walk away from an auction, and right now we need to fill our pipeline with as many warm conversations as possible because the immediate listings are becoming increasingly rare. Having this mentality around your engagement with the public will give you plenty of chances to do just that.

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