"In this business, success doesn't come to you, you have to go to "SUCCESS". I've said that many times in my real estate career, especially when talking with new agents. It's never been more true than in today's market.
I had the perfect lesson last year selling an historic church that had been on the market for two years, not the whole time with me. It had been used most recently as home, studio, and gallery by a ceramic artist. (Of course I loved that since I was also a ceramic artist in a previous career.) The adjacent cemetery was an issue; some found this very peaceful and relaxing, but others would not have anything to do with a graveyard so close. The market was just starting to turn down in the Baltimore area then.
We exhausted all the traditional and non-traditional ways of drawing attention to this unique property:
- A contest to suggest the most creative use of the building
- An open house with popcorn and champagne
- Featured it regularly in my blogs
- Took agents who visited out to lunch
- Advertised in the New York Times, the Washington Post, Russian newspapers, and more.
- Advertised in business group publications and newsletters
There was lots of interest, we had lots of showings. But no one would make the right offer even though several people were interested at the same time. The news on radio and TV, with its gloom and doom, was frightening potential buyers.
So I suggested an auction, not sure how my seller would react, as way to get buyers to compete with each other. I interviewed three or four auctioneers before finding one who was as enthusiastic about this former church, ceramic studio, home, historic property. My seller agreed to put up a $10,000 advertising fee, and to auction we did go! And it sold! 30 days later it settled. My seller paid NO commission, NO closing costs, NO repairs. Happy seller, Happy me!
So me thinks, "If I can sell an 'unsalable' listing this way...why not real good 'salable' properties?" In the past year I lost several of my listings to auction companies. In discussing this with others the idea of starting an auction company that is Realtor®-friendly came about. Wouldn't it be wonderful, we thought, to have this option for sellers whose properties have been on the market for extended times? Wouldn't it be great for the client who wants to purchase non-contingent, or for the relocating family? What about the parents whose kids are out of town who don't want to worry about getting the house ready to show or having strangers in the house at any time? For the educated person who understands Accelerated Marketing, it's the perfect answer.
Since I had five auctions in the past, including the historic church, I moved forward with this new concept and a new company concept. I took the idea to corporate and even suggested we get exclusivity for my former company. They seemed to be excited with the concept and said "we'll get back to you". I presented at a weekly company meeting, again hearing excitement from the manager and agents. I ran ads for three weeks promoting nine of my listings that were going to auction.
Then I received a phone call from corporate. They said they were NOT going to allow me to proceed with the new company because it did not have a track record. (How can a new company have a track record? It was kind of funny because the new auction company is named TRAC, The Realtors Auction Company.) http://www.tracauctions.com/
I'm convinced that this new business model of Realtor-friendly auctions is going to be successful, and I've chosen to go to it. I'm still doing traditional listings, of course, but now I have another option for my clients. Now that I am with TREC, THE Real Estate Company of Maryland, my clients can have whatever works best for them.
Know what makes me laugh? The other day I saw an ad by my former manager promoting a real estate prep class. And there were my words in his ad at the bottom of the page: "SUCCESS DOESN'T COME TO YOU…YOU GO TO IT." It's still true. And I've moved on to go to my next level of Success.
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Margaret,
Congratulations on your new venture! I work for a very forward thinking broker (www.majoronline.com) who, like you, sees auctions as the wave of the future. Now when we take a listing we have the option of taking it as an auction listing. I am excited for the future and another avenue to close home sales in todays sales climate.
Cheers,