Is The Property Suitable For Auction

Purpose

In this procedure, the sales staff help the Seller decide whether to go to auction.  The procedure starts when the Sales Administrator compiles auction statistics and information.  It ends when the Sales consultant and the Seller last review the auction marketing plan.

Auctions are a popular way to sell property, but are not suitable for all sales.  It is important that the Seller understands fully the advantages and costs of auctions and private treaty sales, and be able to make an informed decision.  It is important to explain everything and not to push the Seller into an auction against their will.  A Seller who is coerced will not bring business to the company by recommending it to others.

Procedure

Sales administrator

• Keeps a record of your auction success rate and prices achieved compared with private treaty.  Works out sales statistics for before, at, and after auction sales.
• Sales before auction –% (your statistic)
• Sales at auction –% (your statistic)
• Sales after auction –% (your statistic)
• Sales by private treaty –% (your statistic)
• Presents this information in a table on an information sheet
• Lists the benefits of auction on an information sheet.

Sales Consultant

• If an auction will help the Seller to quickly achieve the highest possible price, recommends it to the Seller.
• Does not pressure the Seller if they do not want to go to auction
• Explains the three stages in an auction marketing plan and that the property may sell at any one of these stages.
• Explains the costs involved in an auction
• Reviews the auction marketing plan weekly with the Seller.