The Auction Fear Factor

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The Auction Fear Factor!

There is little doubt that the objections associated with both buying and selling at auction come from a place of fear. Buyers fear they will make a mistake or an impulse decision due to the speed and pace of an auction. While sellers fear they are going to be forced or pressured into taking a price lower than they are comfortable with on the day. These ideals have been pushed and perpetuated in the marketplace by the media and other anti-auction campaigners. So, how do we get around the fear factor?

The answer is simple, education. Many sellers that are uncomfortable with the idea of auction will voice this quite sternly and often the conversation stops there. Instead, we need to handle that objection just as we would any other. Ask questions, probe further, find out what their real motivation is behind not wanting to auction. You may just find that all they need is to be stepped through the process and provided with information about how they are just as safe under auction conditions as a private treaty sale. This goes for buyers too. Of course there are circumstances that deem buyers ineligible to bid at auction, but for those that can but are too scared to do so are quite possibly missing out on some great opportunities due to a nothing more than a lack of education.

My recommendation to you, don’t let the fear factor take over a process that we know works, and works well. Dig deeper, get to the root of the issue and see if you cannot educate the buyer or seller through the objections. It might just change your auction campaign conversion rate and have a great impact on your buyers and sellers alike.

DAVID HOLMES — INDEPENDENT REAL ESTATE AUCTIONEER