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PostPosted: Thu May 08, 2008 4:54 pm 
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I just met with local real estate broke at a property I am about to auction. The broker is interested in trying to work together to market real estate at auction for our mutual gain. The question the broker has is how does he keep business from by passing him and going directly to me. His concern was that once we work together and successfully auction a few property clients will take the attitude why should I go to the broker to sell when the auctioneer is going to handle anyway. The broker and I are both well known in the area and do not want to hurt his business or mine.


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PostPosted: Thu May 08, 2008 5:44 pm 
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Location: Adrian, Mi.
A good broker and a good auctioneer will make a good team with each bringing their own unique talent to the table.

Keep the team and you both will benefit. Try to do an auction without the real estate knowledge the broker has and you might get your (fill in the blank} in a wringer!

I would trust a broker who understands auctions over any attorney any day, anytime.

If you and the broker cannot trust each other then perhaps you both should go in a different direction and find someone you each can trust and work with.

Lyn Liechty, Auctioneer


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PostPosted: Thu May 08, 2008 10:11 pm 
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I don't understand if there is a question here or not? There is nothing that keeps a real estate broker and licensed auctioneer from cooperating in most states, some auctioneers who are not brokers do it and some do not. I personally don't know why an auctioneer wouldn't want to sell real estate but some just don't. I think that if a person is going to sell real estate at auction they should get there brokers license, I just don't like splitting the fee I guess. There really aren't many technicalities to selling RE at auction. As for the broker worrying about people passing him by to get to you, that can't happen because you can't do it by yourself.

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Adam Hill
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PostPosted: Fri May 09, 2008 4:50 am 
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I never got my brokers license because in case of a lawsuit it's the broker who will get sued. Also because along with the extra money are plenty of extra headaches. Right now I prefer to share the work and to share the wealth.

If real estate auctions were more popular here and I was getting more real estate auctions then I would probably get my brokers license.

The one big headache in an auctioneer working with a broker is the simple fact that most real estate brokers have an innate bias against the auctioning of real estate and they will either intentionally or unintentionally sabotage the process and in doing so do their best to make the auctioneer to look at best, subservient and at worst, downright foolish.

There are brokers I will work with (not very many) and there are brokers I will never work with (most of them).

Lyn Liechty, Auctioneer


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PostPosted: Fri May 09, 2008 1:54 pm 
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Lyn

I'm not an attorney and do not claim to be one but in a real estate auction I would think the auctioneer would be just as liable as the principal broker if they are on a commission basis. Again i'm not an attorney and you certainly could be right but I wouldn't think that not being a broker would make a difference or not in being sued, it would help though because of the e&o insurance.

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PostPosted: Fri May 09, 2008 2:24 pm 
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Well, I am not an attorney either, but it really boils down to what the mistake that was made was and under who's realm of responsibility it falls.

If I stand up and make a statement about the property that I know is not true then I will probably be liable, but if the broker is taking care of all the paperwork and the legal part and all the auctioneer is doing is standing up and calling the sale then the broker will be liable.

I did not get this opinion from an attorney, but I did get it when I went to real estate school a number of years ago. I remember it like it was yesterday when the instructer stood there and said; "If something goes wrong, it is the broker who gets sued, even if the agent made the mistake." Now as an auctioneer a distinction must be made as to which hat I am wearing. That of the auctioneer or that of a sales agent who is also a bid-caller.

Lyn Liechty, Auctioneer


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PostPosted: Fri May 09, 2008 3:21 pm 
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The broker gets sued when the agent makes a mistake because they are under the brokers umbrella and work for the broker. You as an auctioneer are cooperating with the broker and are both employeed by the seller, so who knows really. I'm sure there are some auctioneers out there that have been through it so they would know a lot more than I would. I can't think of a whole lot of instances in which a broker would be sued for a property selling at auction if the proper procedures are taken before the auction. If you have clean title and do not misrepresent the lot size, there isn't a whole lot to sue over. I'm sure i'm missing some stuff, I think it's an interesting topic though.

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PostPosted: Fri May 09, 2008 3:38 pm 
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Well, that's kind of what I said. It depends upon just what role the auctioneer is assuming.

What do you all think about auctioneers who are not licensed to sell real estate selling real estate at auction without the benefit of using a broker? Ok, if using an attorney? Ok, not using an attorney?

Lyn Liechty, Auctioneer


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PostPosted: Fri May 09, 2008 3:55 pm 
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I know this won't be popular at all but I don't think an auctioneer should be allowed to sell real estate at auction without a real estate license, so I really don't think they should be allowed to sell without the use of a broker. I know 90% of ppl won't agree with that but I don't think any auctioneer should be able to team with a broker and sell real estate.

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PostPosted: Fri May 09, 2008 4:07 pm 
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[quote="Lyn Liechty"]Well, that's kind of what I said. It depends upon just what role the auctioneer is assuming.


It really doesn't matter what role the auctioneer assumes, if you are taking bids on the property and you say sold than you negotiated the sell of the property, which would make you just as liable for something as they broker who takes the escrow check because that's about all that they do. There are really only 2 possibilities -You are either a sellers agent or you are a hired bid caller. The way you are compensated (commission or flat fee) is really what will determine the difference imo. Once you are there though you have a role, it doens't matter how much or how little imo.

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