CO-OP & PARTNER WITH AN AUCTIONEER

Now that you’ve reviewed your state and local auction laws, you may have noticed that just as becoming a great broker/agent can take years, becoming a great auctioneer could also take years.  The nuances learned from experience can make the difference between having a successful auction and having a failed auction.  Everything from the listing presentation conversation, qualifying the seller and property to the marketing plan and how you converse with a potential buyer are different in the auction process.

Don’t let this stop you from exploring auction opportunities in your area.  A zero-percent commission is how much money? Almost every top 20 UC office and long standing traditional only offices are taking advantage of auction opportunities without getting their license by cooperating and partnering with other Auction Centric UC offices and/or auctioneers in their areas.

There Are Several Ways for Traditional Brokers and Agents to Get Involved With Auctions:

  • Refer Clients or Customers: Refer a seller to an auction company and receive a referral fee when the property closes.  The referring agent or broker may also be instrumental in convincing a seller on the merits of an auction.
  • Be a Cooperative Buyers Agent/Broker: A cooperating agent or broker registers a buyer who purchases property offered through an auction and earns a commission established by the auction firm. This agent or broker accompanies the bidder to pre-auction events and the auction, registers him to bid, and receives a portion of the commission.
  • Be a Listing Agent/Broker (Co-Broker): A listing agent/broker is an agent of the seller who markets the seller’s property and represents the seller during the sale and at the closing. In a sale by auction, the listing agent/broker manages many traditional real estate functions and shares the commission based on the amount of involvement and the relationship defined by the parties involved. This relationship is beneficial for auctioneer and agent when services by a local auction or real estate company are needed or when an agent identifies a potential auction situation for a seller and the agent is not an auctioneer.
  • Partner with an Auction Office or Auctioneer: Consider partnering with another office or auctioneer for a longer term, mutually beneficial relationship and revenue stream.  There are many benefits to partnering with auctioneers:
    • Incremental business for both offices
    • Your next two auctions and traditional listings are sitting in the audience
    • Auctions can earn larger commissions (buyer’s premiums) to split
    • Significantly increase free local market advertising
    • Market differentiation for both offices
    • Partnerships ensure future co-ops, can define territory
    • Expands market reach
    • Additional services for your clients:
      • Keep clients with you
      • Gain a new client base
      • For auction qualified properties you can maximize price
      • Provide a solution for a time definite sale

Keys to a Successful Partnership:

  • Cultural fit
  • Willingness to train & learn from one another
  • Clear roles, responsibilities & agreements
  • Regular communication
  • Team approach throughout every phase
  • Co-authorship of marketing plan
  • Co-branding of everything
  • Sharing of buyer leads generated
  • Consistent accountability
  • Competent practice
  • Long-term vision

Where to Start:

  • Go to real estate auctions in your area
  • Locate the UC auction offices near you
  • Contact UCAS home office for a recommendation
  • Interview each auctioneer you are considering
  • Interview and select and auction office partner
    • Interview questions:
      • What role will we each of us play?
      • What training, will you provide to our team?
      • Will you attend potential listing presentations?
      • What commission structure and splits we will use?
      • Will we share buyer names generated during the auction?
    • Establish a partnership
    • Allow Auctioneer to look at your current inventory for potential auction candidates
    • Learn how to proactively look for deals
      • Educate your team to look as well
    • Call your partner before you discuss a possible auction with a likely auction candidate
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