Tomorrow, Saturday 18 April is World Auctioneers Day, and to celebrate this ancient profession we’ve spoken to two of Harcourts top auctioneers about their start in the business and their advice to those budding auctioneers out there.
Why branch into auctions?
Grow your profile and your skillset
For you as an agent, there can be many personal benefits to becoming an auctioneer.
With 23 years in the industry, and 17 of those spent auctioneering, Chris Kennedy, Harcourts National Auction Manager in New Zealand says auctions can help to build your profile, confidence and income.
“You can definitely build your profile as an agent, and good auctioneers certainly receive accolades.”
However, auctioneering isn’t as easy as some may believe says Chris, having spent many years coaching and training those new to the role.
“There’s the lure of a relatively good income, but too often I see budding auctioneers assume auctions are easy – well that’s because seasoned auctioneers make it look easy,” says Chris.
Behind the scenes, a good auctioneer is practicing weekly. Chris himself practices with playing cards, shuffling the deck, then throwing cards down and adding the numbers. Chris continues to practice with cards, or by counting number plates, even after 17 years calling auctions.
What qualifications do you need?
A current Real Estate Agents Licence
In both Australia and New Zealand, auctioneers require a current Real Estate Agents Licence. In some states in Australia, such as Queensland, you also require an Auctioneers Licence. Amongst other criteria, to get an Auctioneers Licence you perform five auctions under the supervision of another auctioneer.
Knowledge of the industry
But it doesn’t just stop at formal qualifications, says Chris who believes an aspiring auctioneer should have a clear understanding of the real estate business and a good understanding of what goes into and makes a good marketing campaign.
Negotiation skills and the ability to read a crowd
“It also about being a shrewd negotiator, because you need to be the best negotiator there on the day.”
Chris believes an auctioneer needs to be able to read the crowd, and be able to work with different personalities and backgrounds.
“Being bi-lingual too is a huge bonus, particularly in Australia and New Zealand with growing migrant populations”, says Chris.
What sort of personality suits auctioneering?
“Someone who likes people and has good people skills as you need to be able to read a crowd, a buyer and the seller” confirms Mitch Peereboom, Queensland Chief Auctioneer
The ability to read and interact with people is crucial according to both Chris and Mitch, as you need to remain calm, negotiate well and make sure all parties are happy at the same time.
“An auctioneer is someone who is naturally gregarious – peacocks we’re sometimes called!” Chris jokes.
“In all seriousness though it’s someone who is outgoing, who can tell a story, who can inject a bit of humour into the call, but also someone who understands the serious side of dealing with someone’s most valuable asset”, says Chris.
What do you look for in a new candidate or junior auctioneer?
The key: A willingness to learn. “There is a lot for a novice to take in, and whilst someone may have an outgoing personality and desire to be an auctioneer, that doesn’t mean they’re prepared to call an auction”, says Chris.
Chris has seen many new recruits struggle through their first auctions, he himself admits his first auction was a disaster.
“I received half an hour of training, two days before my first auction – it didn’t go well. It wasn’t enough training to say the least”, says Chris.
Before a new recruit is ready, Chris believes you also need to be able to think strategically, and understand the complex legal side of calling an auction.
How can you get started in auctioneering?
Both Mitch and Chris started their career whilst working in sales in real estate offices, but both took different paths from there.
Mitch started spending time with the chief auctioneer in his area, attending several auctions and learning the ropes with a mentor. Chris’ principal tapped him on the shoulder and threw him into an auction the next weekend.
Chris advises that someone starting in auctions should work with a senior auctioneer, attend auctions with them and practice, practice, practice.
Also don’t underestimate training. At Harcourts, we have training programmes specifically for auctioneers, and Chris suggests attending these, as well as external training if need be, citing proper training as key when starting in auctioneering.
Key points to holding a good auction
Rapport with the vendor – Building trust with the owner and making sure they understand that you’re on their side.
Adaptability – You need to be adaptable and reactionary, as you may be dealing with different environments, noise from passing traffic, or weather and you need to be able to command the room or space over these distractions.
Transparency – Be clear, concise, and transparent with the crowd. People need to feel comfortable.
Connecting with buyers – You need to be able to read the room, and know what kind of buyers you’re dealing with. What drives them.
“You want buyers to be thinking with their hearts, not just their heads. It’s important to be able to connect buyers to the property emotionally. Buyers don’t really know how much they’re willing to pay until they’re there, and it’s up to you to use this knowledge and work with that fear of loss.
How can someone overcome nerves when they’re new to auctions?
Practice
The best way is to practice, says Mitch. You can practice in front of a mirror, but also seek feedback on how you’re doing.
Chris uses famous speeches, or tongue twisters to prep before an auction, and advises practicing in front of your colleagues as this can be more of a challenge than reciting these on your own.
“It’s natural to be nervous in front of others, but do it often enough, and it becomes easier”, says Chris.
Mitch echoes this advice, agreeing that like anything nerve-wracking, after you’ve jumped in and done it, over time, it will become easier.
Chew gum
Practically, Chris also says you can chew gum before calling an auction or use vocal lozenges which are popular among singers, to stop the mouth from drying out when speaking publicly.
Ease into it
Chris brings new auctioneers along to his auctions, so they become familiar with the structure. He then slowly gets them involved, more and more with each auction.
First he’ll have the new auctioneer greet and welcome everyone to the day’s auction and acknowledge the sales consultant and vendor.
The next time Chris will bring the new auctioneer in to run through the rules and formalities of the auction, and the description of the property.
Eventually the new auctioneer will also take and add bids on the day, before calling an auction of their own.
Is it worth getting into auction competitions?
According to Chris, it is definitely worth it, and at Harcourts it’s encouraged.
The reason? “The amount of time spent practicing for a competition is huge”, says Chris, who has already started practicing for a competition he’s preparing for in June – three months away!
“The practice alone makes a competition worthwhile. I guarantee you that even if you don’t win a competition, the next auction you call will be your best – the preparation is that intense!”
Auction competitions are different to holding a real auction, but the preparation requires you to do your research, practice numbers, train your voice, listen and prepare and read through scripts – that kind of practice is invaluable.
“Sometimes I’ll hear an auctioneer doesn’t want to compete when up against stiff competition – but these are the auction comps you should compete in!
“These will challenge you to go the extra mile, and winning is possible. I’ve seen novice auctioneers win competitions after dedicating themselves to preparation… I’m talking a couple of hours a day”, says Chris.
It should be noted though that auction competitions are more regimented and scripted than the real thing according to Mitch.
“The limitations are they don’t represent what happens in the field, they’re not as reactionary, so you aren’t able to hone your negotiation skills, but they will certainly help to improve some facets of auctioneering”, says Mitch.
Auctioneering can be a rewarding and lucrative career path, but it isn’t without its challenges. With training, the desire to learn and a lot of practice, auctioneering could be your next role.
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