Why have an external auctioneer? Sam Dalby gets the answer with Jesse Davidson

February 8, 2019 |
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Transcript below.

 

 

Sam Dalby:                       Good day guys. Sam Dalby here again. Jesse, thank you very much for joining us again today.

Jesse Davidson:               My pleasure.

Sam Dalby:                        I had a client come to me recently, and they’re thinking about listing with this agent because they’ve said, “Look, I’m actually going to be auctioneer on the day.” Now, obviously that’s a bit of a concern to me as an agent. Obviously from an expert opinion such as yours, why is that a detriment to the potential seller of this property?

Jesse Davidson:                Look, as an external auctioneer, I obviously see the benefits to to having that external party on auction day. I do believe that an agent is too involved probably from every perspective in relation to that campaign to handle a good quality auction. Now, I’m not saying it can’t be done successfully, but I do believe that it’s very, very difficult to handle successfully; and the reason behind that is that you as an agent build a rapport with your vendor individually, but you as an agent also build a rapport with your buyers individually. Buyers are a little temperamental come auction day, and no matter whether you believe they will or not, when you wear the agent hat and then suddenly take that hat off and put the auctioneer hat on, I do not believe buyers work with you as well as they would if you were just playing agent.

Jesse Davidson:                The reason behind that is rapport is so really, really important in our industry as you understand, but an auctioneer plays the third party. They take a lot of the heat, as you know. The amount of times I walk away from an auction as the bad guy is unbelievable. But that’s my job, and I think it’s really hard to to potentially play both the good and bad guy as the agent and auctioneer. I think it’s really, really difficult. So my advice to owners is to certainly select an agent that has an external auctioneer and importantly a very experienced one in this market as well.

Sam Dalby:                        So just building on that obviously if I was the auctioneer calling an auction for a vendor, I might only do 40 or 50 auctions a year.

Jesse Davidson:                Correct.

Sam Dalby:                        Being an external auctioneer, you call a lot of auctions.

Jesse Davidson:               Yeah. [crosstalk 00:01:59] Look, my company do about two and a half thousand. With a bit of luck, I’ll do approximately a thousand auctions this year and therein lies a really good point. That’s where I speak about experience. There’s no doubt that you’re selecting an agent that has an experience within the real estate world, but you’re not selecting an auctioneer that has experience necessarily in doing multi auctions and huge numbers of them per year. That means that we’re exposed to such a magnitude of options and different scenarios that come across my desk, which mean that I can handle it really, really well, and 99 percent of the time I’ve seen the scenario that’s put forward to me on auction. I would argue that some of the inexperienced agent auctioneers probably haven’t seen it all yet. I’m not saying that I have seen it all but much of it.

Sam Dalby:                       Oh definitely. So probably the biggest advantage in using external auctioneers, definitely this level of experience. But would you also say it’s your ability to be able to read the room quite well?

Jesse Davidson:                Yeah, I mean that’s what I do for a living. I believe that my job as an auctioneer is to break a crowd down within 15 to 30 seconds. We don’t have long to make people like us, but most importantly for people to understand the presence which we as an auctioneer are trying to impart on that auction. So I think it’s really important that you’re really effective within that period and that your external auctioneer, as I say, can play the good guy, but can certainly play the bad guy if needed, which is a very, very difficult thing to do for an agent who’s now built a four or five week relationship with this young couple who’s now fallen in love with this home. It’s just a very tricky situation.

Sam Dalby:                       So for all the owners out there are thinking of selling their property, they want an external auctioneer. How do they get in touch with either you or your team?

Jesse Davidson:               Look, from our perspective, we like to rely entirely on our agents. We don’t work with vendors directly. And the reason behind that is that we firmly believe that an agent is the best way to sell your property. So from my perspective, the way to get in touch with our company, Auction Works is by all means, give us a buzz. We can give you some referral agents, but certainly to touch base with your agent first and say to them at the time of listing, “We would like to list with an experienced team like us, Auction Works, and we’d love to work with you,” but certainly to go through the agent first and they will make the necessary calls to get in touch with us.

Sam Dalby:                        Brilliant. And always Jesse, thank you very much again for joining us today.

Jesse Davidson:                My pleasure.

 

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