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PostPosted: Tue May 13, 2008 3:47 pm 
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Location: Adrian, Mi.
Ever hear the old saying; You can lead a horse to water, but you can't make him drink it.

Better find a different broker. This one ain't drinking! :)

Lyn Liechty, Auctioneer


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PostPosted: Tue May 13, 2008 10:37 pm 
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Location: Corbin KY
Agree with Lyn, if the broker is having trouble coming around to the auction way of marketing that means he probably is going to push the private sell method to every client, even the ones that auction would be more appropriate for. Find a new broker if this one don't see eye to eye this early in the process.

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PostPosted: Wed May 14, 2008 2:01 am 
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Location: Houston TX
The only way to "bring anyone around" is by education and you have to start somewhere. Often, you only provide the seed, but it takes time to grow in the mind of the individual before it begins to make sense. While, NOW, may not be the time for this particular broker, it does indicate that there is an interest, which is the best time to plant that seed in their mind.

To most people, the auction is very misunderstood. It's up to us to help them understand, so that they may one day become the next seller or buyer or joint venture. The best time to do so, is when they seem to have a spark of interest. Fuel the spark with the right elements and it could become a fire.

Jim

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Personal Estate - Business Liquidation - Real Estate - Charity Fundraisers

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PostPosted: Wed May 14, 2008 3:18 am 
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If only it were that simple, but I don't believe you can get much of a crop of wheat out of concrete parking lot.

If the broker is actually willing to learn more about auctions that is one thing, but this is sounding like someone who would end up sabotaging the process then screaming out to everyone who will listen that; "Auctions just do not work!"

I will leave those headaches to someone else.

Straying just a bit, I took a call from a sales agent who has a piece of commercial property listed and wants me to come in and sell off all of the personal property. The biggest thing I remember from our conversation was when he said, that he would send this to me, but only if he "could share in the wealth."

He didn't bother to tell me this was a shared listing, so I presume if I am expected to "share the wealth", it will have to be with two people rather than one. Neither am I sure just how much "wealth" he expects for referring me to a gentleman that I had already spoken to about two years ago. There seems to be a lot of plain old fashioned greed in the real estate world. I guess I got it all wrong, but when I refer something to another person, I ask for nothing and expect nothing, except they work their best for the person I sent them to.

Lyn Liechty, Auctioneer


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PostPosted: Wed May 14, 2008 8:48 am 
Lyn,
Remind the salesperson that you are emptying the building for him which in turn will make it look more presentable. This in turn could make it easier for him to sell. Is he going to share the wealth with the real estate sale ?

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Dave Prough
Pro Auction Co.
Jerseyville, IL.


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PostPosted: Wed May 14, 2008 10:02 am 
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I wasn't implying that this individual would be "converted", but only that if they are asking about the auction process, that's the best time to educate them on how it can benefit them. Most will still have doubts about anything that is new to their thought process, but providing the proper information will allow them to start sorting it out in their mind. Of course, as a past instructor, I realize that the education process takes time and people do not catch everything, which only causes them to raise other questions (especially adults who already have preconceived knowledge)... as long as they are asking questions, it's an open door for furthering the education process. This individual is asking "why would they use me, if you can also do the same thing?" This was the basis of my previous suggestions and how that question could be answered.

As far as the "greed in the real estate world", I don't think it stops there, as it seems rampant to every part of the world. I usually handle such requests the same way you do. And, while I may offer suggestions, I rarely make a referral unless it's someone I can definitely vouch for, as that could come back to haunt me. Of course, in the real estate world, most states do not allow a real estate agent to pay anyone else for leads or other assistance in selling real estate (in Texas, you may send them a "token" gift of less than $50), unless it is another real estate agent (and even commission splits must be disclosed to all parties). So, I don't understand why they would expect you to split your commissions with them. I'd ask if he/she was going to help with the auction... cleaning, set-up, advertising, working the day of sale... I'd bet they would be crawfishing out of it real quick. (oh... that means "backing out") However, if it's a good lead, I may send them a gift certificate for dinner at a local restaurant, as a way of saying "thanks" (less than $50, of course... same as their rules).

Jim

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PostPosted: Wed May 14, 2008 4:30 pm 
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Location: Adrian, Mi.
DAVID PROUGH wrote:
Lyn,
Remind the salesperson that you are emptying the building for him which in turn will make it look more presentable. This in turn could make it easier for him to sell. Is he going to share the wealth with the real estate sale ?



On the first two sentences, I have thought about that. In regards to your last sentence....................................You're kidding. Right? :lol:

Auctioneers seem to have bad reputations for some reason, but traditional real estate people seem to have an overabundance of greed and I find that hard to deal with. Getting back to the orginal topic, I believe there are brokers you can work with, but most are nearly impossible to work with unless you the auctioneer are willing to grovel and put yourself in a totally subservient position and those realtors will screw up an auction at every opportunity.

I'll bet Billie Burke is just a lovin this! :)

Lyn Liechty, Auctioneer


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PostPosted: Mon May 19, 2008 9:46 am 
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Quote:
The only way to "bring anyone around" is by education and you have to start somewhere.


I TOTALLY AGREE WITH JIM FORD ON THIS POINT!!!

Some of my posts about realt0rs may seem harsh but the reason is that most don't even want to hear anything about auctions.

Once they are on the path to education, most will get with the program in concept.

Quote:
I'll bet Billie Burke is just a lovin this!


Lyn:

Whenever I am speaking with an agent about auctions the most important thing in the first 60-seconds is to ask:

I know that you want to know, whats in it for me and how do I get paid? Right?

Instant agreement from the agent and a great opening...

Knowing that agents are 'form driven creatures' I have created a set of forms for agent seller referrals and for buyers agent registrations.

We pay up to 3% to buyers agents for representing the winning buyer at auction and make it pretty simple & easy.

Fill out the form with the buyer & agent's signtature, place an opening bid & agree to the terms and conditions. IF the opening bid is withing 70% of the winning bid they earn 3% if its less they get 1-1/2 & to 2%... Most agents are inherently greedy and they work the buyer to place a higher opening bid...

For Seller referrals they get a percentage of what we earn from that seller for selling ANY properties within 12-months of the referral.

If you tell them what they will earn and keep it down to a simple one page 'form' then you are speaking their language.

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Secrets of an AARE Auctioneer
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The Most Comprehensive & Complete Guide to selling real estate at auction


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PostPosted: Fri May 23, 2008 11:53 pm 
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This is an interesting topic and I had to add my thoughts. I'm I suppose what some of you will consider a cross-breed. I am a Realtor and I am an Auctioneer.

I disagree with the poster that feels an auctioneer should have a license to sell real estate. Each state makes it own laws, the auctioneer should follow those laws.

I sell real estate through my brokerage at private treaty sales, and I sell real estate through my own auction company using the auction method. Both sales could not be more different. When I have my auctioneer hat on I am very limited on what I can do and I follow the auction laws. When I have my agent hat on I follow those laws.

In a private treaty sale we negotiate EVERYTHING. The buyer is in control of the process and ANYTHING is fair game from the shingles on the roof to the basement floor. Negotiating those things takes additional knowledge of not only real estate laws but a little bit of knowledge in just about anything including construction, pest control, easements, taxes, tenancy, investment........ just all sorts of things.

With an auction things are much more simple. You lay it out, here it is, here are the facts, take it as is, with all of its faults, how much will you pay?

I would not even consider bid calling a negotiation in its true sense. Negotiations happen between two parties and the seller is not actively participating in the auction. Sure the auctioneer is representing them but you do not have to parties going back and forth. After a buyer makes a bid the seller does not come back and say "No I won't take that, but I will take this" That happens in a negotiatied private treaty sales, but not in an auction. Instead the sellers representation, the auctioneer just keeps asking for more, everybody has a chance to offer more. Its not negotition, its price discovery. You don't tell the bidder you won't accept his bid, you ask for more. Someone else bids more and thats when the last bidder realizes you won't accept his bid, you never told him, the other bidder did by placing a new bid. We find out what the highest amount someone was willing to pay. The seller will only give a response after all of the bid taking is done and it always comes down to the dollar amount. The high bidder is always the successful bidder.

Thats not true with a private treaty sale. Heck I've seen in private treaty sales where a seller accepts an offer in a multiple offer situation that was not the highest dollar offer. If one buyer was willing to pay $100,000 but wants to close in 90 days they may take the offer for $98,000 from buyer B that will close in 30 days.

Contracts were mentioned. As an agent I do not "write a contract" I fill in the blanks on a contract form that was written by an attorney, but only after my client has signed a permission form allowing me to fill in the blanks on the form for them. The permission form explains to them that I am not an attorney and can only fill in the blanks.

As an auctioneer the only contract I deal with is the Exclusive Right to Sell with the seller, after that the purchase contracts are handled by an attorney and the closing process is handled by the mortgage company, title company and attorney.

There was a comment about most Realtors being greedy and willing to talk their clients into one or two more bids. I don't believe that is true, at least of the agents I know and work with. The agent world is much different than the auctioneer world. As an agent you are usually between two parties and you want both to come out happy. You usually know both sides wishes and if you are dual agency representing both sides you are almost always in a situation where the seller needs to come down and the buyer needs to come up. Does an agent realize he/she has a paycheck riding on that happening? Certainly but so does the auctioneer that has not met reserve at auction and is in the backroom discussing it with the seller. I certainly would not call that auctioneer greedy, he is doing his job and educating the sellers about the value of their property, he is explaining their options to them. An agent has no different struggle, sellers always think its worth more and buyers always think its worth less. I wouldn't argue there are not a few bad apples in the bunch, but I wouldn't argue there are not a few bad auctioneers in the bunch either.

I have a perfect example from an auction last month. I had an agent I know register a buyer at an real estate auction last month. When the dust settled they were the high bidder and just a few thousand dollars from the reserve and that agent knowing this investors plan gave him what was probably good advice, stop bidding. The agent knew that if he paid more it was not going to do what he wanted it to do for an investment. Had this person been at the auction alone he probably would have continued bidding but he took the advice of his agent. The agent knew he had a paycheck riding on it and in the end the seller refused the final bid less than $10,000 from the reserve. The agent accepted that and didn't gripe. That was not greed but exceptional representation on his part. Agents rely heavily on repeat business and referrals just like auctioneers, it would make no sense to stick somebody intentionally.

I do agree most Realtors are not interested in learning about auctions or using us for auctions but the time is coming. I predict that in the next 12 months we will all get more and more cozy. Look at what has been done just in the last 24 months, there is much more talk of working together. I do however worry about the amount of interest the National Association of Realtors has in auctions lately, and I worry about how cozy the NAA has gotten with them. NAR is an extremely powerful group and I have a hard time seeing something good coming out of it.

Thats my 2 cents.

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Jason Smith
Jason@gowithjason.com
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PostPosted: Sat May 24, 2008 12:21 am 
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Jason
That was a very well thought out and articulate rendering... Bravo!
I agree 100% and feel that you're right on target with your assessment.

Jim

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Texas-National Auctioneers
Professional Auction Services for Houston & the Great State of Texas
Personal Estate - Business Liquidation - Real Estate - Charity Fundraisers

http://www.t-na.com
281-479-7848


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