Red Flags

I do a lot of training with, new to the business, auctioneers. Most are excited about being in this new profession and approach it as a real estate agent would approach booking new listing. Problem is, in this business we are all about selling and not about obtaining new listing. I have a complete section in my Real estate Boot camp on qualifying sellers.

Additionally, I put together a, sort of down and dirty, way to determine if in fact we can be of any help to a particular seller.  You see, I'm not in this business to see how many listing I can book, or conducting auctions that I know we have no hope of selling or spending tons of my clients money just to see my company's name in the newspaper.  I'm in this business to help people solve a particular problem AND I know that for 75% of some people (residential sellers) I won't be the right choice, and for 95% of other people (Ag land sellers) I'll be their best choice.  Anyway, here's my list.

Red Flags

1.    I don’t have to sell!
    - Then why are you talking to me? What they mean is, I'm not desperate to sell.
2.    I need an out of town buyer.
    - Rule # 1, almost all real estate is local. What she means is the locals know my property isn't worth what I'm asking and I need a putz from out of town. Good luck with that one.
3.    I’m looking for an investor.
    -    Same as number two above, just worded a little different.
4.    I won’t sign a listing agreement.
    - Yea and I don't want to have to pay my taxes.
5.    Don’t use word auction.
    - Then we obviously don't need to be talking. A friend of mine said, he tries not to bring up the A word right away in the conversation. Kind of crazy in my mind, but hey whatever works.
6.    I won’t sell unless I get “MY” price.
    - I'm not sure whether you heard the news, but the market ALWAYS sets the price for your property. Now if "your" price is in line with the markets then we might be able to help. But believe it or not you don't set the price.
7.    My property is worth more than market price.
    - See six above.
8.    I wouldn’t consider breaking the property into smaller pieces.
    - It might very well be the only way to achieve the highest and best possible price is to sell the property in smaller parcels.
9.    I don’t want the auction made public.
    - I've actually had someone say this to me before. If you have to ask why this is a problem you're in the wrong business.

Deal Killers
1.    3 red flags.
2.    Unrealistic reserve selling price.
3.    Unwilling to pay auction expenses at signing.

Comments

[Jason Smith]

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