145: 2 Questions Every Seller Needs Answered
My wife and I recently closed on our old house. It had been on and off the market for about two and a half years. After trying to sell it myself a couple years ago and after months on the market with different, hard-working, accomplished agents, I had some questions for our family friend who listed it. Within a couple weeks of her convincing answers, the house was under contract to a couple moving here from North Carolina.
Two weeks after that, I heard my two questions again—this time from someone else, someone looking to sell their property at auction. I had the privilege to accompany a client, as they talked with a seller’s family. As I heard the questions, it hit me that they’re probably the same for almost every seller. I know other auctioneers field the same two questions, because my clients regularly ask me how to answer them.
How are you going to get it sold?
I don’t know about other sellers, but I felt that I had more to lose than the commissioned agent did. At the end of a standard 180-day agreement, they might be out the time they invested and whatever they spent in advertising; but I was going to be out $9,000 plus my time doing all the tasks related to selling a 25-year-old house. Like sellers that my clients serve every day, I wanted to know what skin the listing agent was going to put in the game.
Our agent agreed to a 30-day contract. She gave a pre-listing makeover punch list (with some surprising but intuitive suggestions). She supervised a contractor doing an install, while we were on vacation. She staged the house at no additional cost. She scheduled multiple open houses in the span of a week. Those are the kind of moves that show motivation and empathy.
I don’t know how you answer that question. Maybe it’s showing your successful sales rate. Maybe it’s illustrating your average differential between sale price and assessed value. Maybe it’s offering to buy the asset(s) or some sort of promise. Maybe it’s a marketing plan with a year’s worth of detailed analytics that show how many bidders and buyers you bring to an average auction and what media brought them.
Each seller will need something different to convince them. So, it’s a good idea to develop materials that offer as many convincing reasons as possible. Collect a range of anecdotes and testimonials that cover various seller situations. If you’ve sold your own assets in similar fashion, create a case study that details how what you do for sellers is what you did for yourself.
What are you going to do to market this asset?
This is a slightly different question. Here, the seller wants to know your competitive advantage. More specifically, they are looking for what makes your marketing plan superior to those of other vendors. Where will you advertise that they wouldn’t have considered? What tactics do you employ that your competitors don’t? If your sellers are like me, they’ll want to know what you’ll do differently for this promotional campaign because of specific aspects of your asset and current market conditions. Sellers want to know that you’ve done your homework, that you’ve done more homework than anyone else.
How do you prove that?
Again, this is where robust advertising analytics become a tremendous competitive advantage. If you’re leveraging Google URL builder, multiple URLs, and Google Analytics, you’re already ahead of 95% of the auction industry. If you’re also tracking your time by task, the attendance at inspections, and your cost per bidder per medium, you’re in the top percentile of the trade. If you can illustrate this data with charts or graphics, you’re almost untouchable.
If you leverage professional photography, staging, or other service, demonstrate how that adds value (or at least the impression of value). If you have a custom bidding platform or unique live event techniques, explain how those benefit the seller. If your terms make your auctions more approachable for a wider buyer base, unpack that concept for them.
If you can’t prove any of these competitive advantages, be ready to offer your services for a lower commission—or to take the auctions your competition isn’t fighting to get. If you can’t answer these two primary questions, you might want to brush up on your answers to different questions—the kind employers commonly ask during job interviews.
Stock image purchased from iStockPhoto.com.