Tag : statistics

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4 Stats REALTORS Use That Auctioneers Don’t

A lot of airports use their interior billboards to advertise their respective metro area’s appeal. Usually, the signs tout the city’s hospitals, higher education, technology, entertainment district, or headquarters of international corporations. Walking through Cleveland Hopkins International Airport, I saw one that fit in none of these categories.

The headline: “Within 500 miles of 43% of the US population.”

I turned to my wife and asked, “What do I do with that information?” I mean, what difference does it make how many people live within 500 miles? That had to be the first time I’ve seen anyone bragging about 43% of anything. So weird.

I’ve actually seen an auctioneer do something similar, advertising a property as only 300 miles from a metro area. I’ve also seen a local real estate agent list Colonial Williamsburg—170 miles from here—as a “local attraction.” (I’ve lived here 13.5 years and never been there.)

Statistics can be powerful tools, though—especially when they support your assertions. I’ve seen small businesses take big sales away from large firms by capturing, sorting, analyzing, and explaining data their competition either didn’t have or didn’t use.

Seller Stats Postcard

Seller StatsMy wife and I live in a fast-growing subdivision in my area. People who don’t live in our subdivision get on our neighborhood’s Facebook page to ask if anyone’s thinking of moving. It’s in high demand because it’s the closest new subdivision to the schools in a coveted district. Also, we have the lowest property tax rates in the area. So, buyer agents are looking for sellers; and one local REALTOR tried to use statistics to tease us to leave.

If you’re auctioning real estate, you should consider using the statistics leveraged on this postcard in your seller presentations. In the seller proposals and presentations I’ve been asked to design over the last 13 years, I don’t need all of the fingers on one hand to count the times I’ve seen any of these used.

Number of Nearby Properties Sold

Only an absolute auction guarantees a sale, but you can give all sellers confidence in the market to bring buyers—if this number is significant. If it’s a low number, you can use that to educate sellers and massage their expectations. If you have a breakdown of properties auctioned vs. properties listed, this stat increases significantly in value.

Local Market Sales Rate

This information is apparently easy to find, because I’ve had multiple REALTOR friends show me this data at different times. This number compliments the first statistic and can give context to expectations. While a metro area or county might be trending one way on the aggregate, a specific slice of it may not. This is true of commercial, industrial, and agricultural real estate, too—even though the statistics might be harder to find or less concentrated than residential numbers.

Average Days on the Market

If this number is high, the time benefit of an auction will seem that much more valuable. If this number is low, the timeline of an auction is actually longer. In that case, you have to sell the competitive-frenzy aspect of auctions. Also, knowing this number might help you in your due diligence to know whether you should take the auction in the first place. (This number might be skewed a bit for our neighborhood, since builders often list their homes very early in the construction phase.)

List Price to Sale Price Average

This stat can indicate that sellers have good sales agents and/or that local comps are reliable, or it can suggest the opposite. If the number is above 100%, you can make the case for the value of a competitive-bidding marketplace. If it’s drastically below 100%, you can discuss how well-marketed auctions—not comps and appraisals—determine market value.

Auctioneers regularly tell me how much they want to work with REALTORS. Maybe they should first pursue working with their statistics.

Postcard scanned. Stock cover image purchased from iStockPhoto.com.

96: Winning The Close Ones

Having helped auctioneers with proposals for over a decade, I’ve found that many auction proposals follow similar outlines and use similar selling points.  So, how do you separate your plan from the competition’s one?

The way you present it.

Our culture is becoming more and more visually stimulated and educated; and your marketing materials need to reflect that—especially your proposals.

Display media choices & other marketing tools.
LoopNet SampleDon’t just list the media you plan to use; show it.  Grab screen captures of the websites on which you plan to list.  Splay covers of brochures or postcards of similar properties you’ve sold.  Maybe even include a digital tear sheet showing what their ad will look like in the newspaper.  You can find similar ways to illustrate press release work, too.  This tactic will save you from burning through past auction brochure samples and allow you to include these samples in PDF presentation via email.  In the past, I’ve even inserted a chart showing the subcategories and quantities of planned direct mail lists.

Sample MediaAnd it wouldn’t hurt to show online bidding screens or a picture of someone bidding online to illustrate that process, especially for an online-only auction.  On at least one occasion, an auctioneer has hired me to build a sample ad or even a full direct mail piece of the property to demonstrate to the seller what they can expect.

Demonstrate numbers with charts & graphs.
Sir Francis Bacon said, “Knowledge is power.”  But knowledge that isn’t easily understood or retained loses its power.  Charts and graphs not only make your information more indelible, they allow you to impress people by the fact that you’re even curating the statistics they illustrate.  If you have some of the following information—and it it puts your work in a favorable light—leverage it for your case!
• Percentage of bidders and/or buyers (on-site vs. online)
• Average quantity of registered bidders per asset type or per geographic location
• Sale prices vs. assessed values
Comparison to Assessed Value
• Price per acre per crop type or land location
Sale Prices Per Acre (Fictitious)
• Breakdown of areas of specialty by quantity of auctions in each category
Areas of Specialty
• Quantities of online only, simulcast, and offline auctions
Bidding Platform
• Media (specific or categorical) choices by number of past bidders or buyers
Pie ChartIllustrate your experience with maps.
My chiropractor has a map in his waiting area showing all the countries from which his clients have come.  Anecdotally, I’ve found that biplane‘s coverage map has given my career experience more credence than the number of auctions I’ve advertised or even the years I’ve been in the business.  To many folks, those units of measure are ambiguous.  Numbers might be relative, but geography is typically a concrete value—especially when selling real estate.  So, show your prospect the nearby locations where you’ve held similar auctions: ““We’ve sold X properties near yours.”  Or show them the geographic expanse of your work, whether that’s by county or by state: “We’ve sold your type of asset from coast to coast.”

The free website, BatchGeo.com, can help you quickly create maps of multiple locations from your database.  Or maybe create a state or county map showing the number of properties that you’ve sold in those boundaries or number of acres successfully auctioned in them.  I’ve been impressed by auctioneers who have mapped in what states and countries they had online bidders and from which they had online buyers.

Your offer—all the things you are promising to do and for what price—will be the deciding factor in whether or not you get the job.  For situations when the proposals on the table will all have similar offers, make sure your proposal gives the impression that you’ll execute the auction with unmatched dexterity.  One way to do that is to use fewer words and more images.
[tip]

I’m not sure that I’ve ever read an entire real estate sales contract, even though we’re preparing to buy our third home in less than a decade.  I’ve never finished reading the iTunes service agreement or all the entry rules in contests to win a trip to the Super Bowl or a new F-150.

And I’ve never read the Bible from cover to cover.

There.  I said it.

I’ve memorized literally chapters of the 66 books—including every verse of Psalm 119, the longest chapter in the canon.  I’ve studied entire books going verse by verse.  But genealogies or major prophets usually kill the hitting streak.

I’m grateful that God supplemented all those inspired words with his inspired nature.  Even in its “groaning,” decaying state, Creation teems with colorful illustrations of his creativity, evidence of his perfect engineering, and analogies for his transcribed principles.  It’s no wonder that Romans says nature alone is enough to show us our need of redemption—a rescue from the entropy of our soul.  And it’s critical that we, who have been restored, worship his revealed glory—so that the rocks don’t have to cry out in our place.

[footer]Stock image of graphs purchased from iStockPhoto.com.[/footer]

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