Do you want to convert more auctions within your real estate business? Specifically, do you want to convert more private treaties into auction campaigns?
Well, that sounds easier than it is. You face the challenge of convincing your vendors to go with this option. And to do that, you’ll need to put some systems and processes in place.
I have a framework that will help you to increase your conversion rate. But before we get to that, let’s take a look at the problems you face with converting auctions.
I think there’s three key problems when trying to convert more auctions in your business.
The first of these is that you have properties that spend more days on the market than you want. This gets frustrating and you end up making excuses for why you’re not working that stock very hard.
But those private treaties could have a potential value inside your business of tens of thousands of dollars!
And you’re just letting it sit to the side because you’re getting excuses from vendors that stop you from taking action.
For me, it’s like you’ve taken a wrong turn and you’ve spent the last 30 minutes driving down the wrong road. Once you realise you’ve made the wrong decision, it’s going to take you even more time to get back to where you need to be.
I also see a lot of poor clearance inside real estate businesses.
Many businesses just fire off shots without really focusing on hitting the target. It’s like you’ve gone to the shooting range and just fired without aiming. You might get lucky and get one bullseye. But the rest go all over the place.
That’s what’s happening when you try to convert vendors to go to auction right now.
And ultimately, this means that you become a victim of the external market.
You don’t have processes inside your business, which means you don’t have enough control. You’re relying on external forces to work in your favour to get the results that you want. Of course, that means you don’t get the auction conversions you need when those forces aren’t playing ball.
So, it’s time to build those processes.
These are the five principles of our ‘Auction Conversion System’™
Principle #1 – Frame Hard, Play Soft
I’m sure you know the story about Winx.
This amazing racehorse managed to win 33 races in a row. But if you watched how she raced, you’d see she didn’t just go charging ahead of the pack. She’d play in the field for the first 800 to 1000 metres.
She’d wait until the opportune moment and then she’d put on the burners and blow past the opposition.
I want you to mirror that idea inside your business.
If you’re going for the auction right off the bat, you can cost yourself business. The goal is to frame hard to get the listing at first. Then you play soft to convert that listing to auction a couple of weeks later.
You’ve got to think a few steps ahead of the vendor here. The likelihood is that a lot of your vendors won’t want to go to auction right off the bat. You’ve got to have systems that lead them towards deciding to go to auction a little while later.
Principle #2 – Flip the Fear
I believe many vendors have a fear of going to auction. They prefer to go for a private sale because it’s more traditional. It’s familiar to them because it’s the usual way of doing things.
What you want to do here is to flip the fear from auctions and onto private sales.
The goal here is to show your vendor that auctions aren’t something that they need to fear. Instead, they can turn this method of selling to their advantage to achieve their goals.
Principle #3 – Use Truth Bombs
Truth bombs are your actual facts.
These are the facts that you can keep layering into your vendor. And by doing that, you’re giving them information that they may not know about.
Think about the person who’s in front of the computer doing some research. They don’t buy straight away because they’re just looking to learn. But on the back of that research, they’re going to get retargeted by the retailers that they’ve checked out. For example, they may get emails based on the products that they’ve searched for. And each of those emails drops a truth bomb about the product that makes buying it a bigger possibility to the researcher.
That’s what you’re going to do with your truth bombs. You drop them regularly so that your vendor learns about the auction process and starts to believe in it.
Principle #4 – Create the Environment for the Premium Price
It’s crucial that you have regular conversations with your potential vendors. The key here is that you establish this concept of a premium price. Specifically, you want them to understand how to create an environment when that premium price becomes a possibility. For me, that environment comes from the auction process.
Principle #5 – Build in Urgency
This is a big one for converting all of your stale listings to auctions.
The idea here is to get in front of the vendor to have a discussion. And during that conversation, you’re going to build some urgency. You’ll talk to them about how they need to make quick decisions and take fast action.
If they don’t, they’re going to miss out.
You can then use this sense of urgency to guide them towards the decision to go to auction.
Establishing the Auction Advantage
The big thing about this is that you need to eliminate the fear that surrounds auctions.
A lot of the vendors you work with go for the private sale because it’s familiar. They understand how it works and know what to expect from it.
If you’re going to get more auction conversions, you need to lift the veil on what happens during auctions. That means building processes that allow you to have conversations with your vendors. You need to flip the fear and use truth bombs to sell the idea of an auction to the vendor.
From there, you can start highlighting the advantage of auctions and create the urgency that leads to the decision that you want.
Process & Structure Coach
For Real Estate Professionals
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