The Dynamics of a Successful Real Estate Auction
- Posted in News
- July 28, 2025
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Well, this is my first Blog that I have ever done! I thought, how difficult could it be?
So, After 30 years in the Real Estate and Auction business, I feel I could be considered an expert on this topic.
The auction industry dates back to the BC years when Greek women were auctioned off for marriage. Although I won’t expound on that, it does show that the method of a public auction has thrived for centuries. The auction industry continues to evolve, with the rise of online auction platforms facilitating the sale of a wide range of goods.
Back when I attended Missouri Auction school in the early 80s, there were courses on Cattle Auctioneer, Auto Auctioneer, Antique & Collectible Auctioneer, and even Tobacco Auctioneer. But today, one of the most prominent types of Auctioneer is the Real Estate Auctioneer. Back in the day at local estate auctions, we would sell hundreds of lots of glassware, jewelry, furniture, tools, and antiques, but the highlight of the day was when we would sell the Real Estate. Locals wanted to see who their new neighbors were going to be and of course everyone wanted to know how much the Real Estate would sell for.
Real Estate at auction has had its ebb and flow but has risen to be one of the most successful means of selling Real Estate. There were times when Real Estate markets crashed with high interest rates and to have an auction was a last ditch effort to sell a property. Today the demand for homes, land, recreational properties, investment properties have all driven the final prices at auction to record levels in recent years.
So what makes a Real Estate Auction a success today.
First of all, of course is the property itself. We sell hundreds of acres of land each year and the question I always get is, “so what’s land going for these days?” My answer is always with a question . . . “tell me more about the property?” I always say that each farm or piece of property is unique in and of itself. There are many variables that play into the value of a piece of property. If it’s farm land, then who’s the neighboring landowners and more importantly who are the adjacent land owners. They are the ones who have a once in a lifetime opportunity to buy a piece of property adjacent to theirs. It is usually worth more to them than anyone else. Other factors that dictate land values are soil types and soils condition, drainage, and the always popular and most important . . . location . . . location . . . location!!
The next part of the Real Estate Auction is the Seller motivation. Today we are heavy into estates and retirement auctions. The motivation is driven by timeframes to settle the estate or create retirement nest eggs for the Sellers. Sellers who are just trying to make a significant profit need to be educated on what their particular property might do or not do at auction. Again, it is important to consider the aforementioned factors.
So, how to put motivated Buyers together with motivated Sellers?
At Schrader of Fort Wayne, we pride ourselves on providing a Professional Successful Auction event for our clients and customers. So the first thing is we provide a complete and comprehensive proposal to our Sellers to educate them not only on the Auction method but the Schrader Auction Marketing Method. This includes taking the time to research their property and the characteristics of their property. Then we craft a custom marketing campaign for their property which is key to attracting those motivated Buyers.
Once the marketing campaign has started, we continue our work by contacting potential Buyers and getting them the information they need to make an informed decision about bidding on the property. We create full color, custom brochures loaded with information about the property. Those brochures are mailed out to Schrader mailing list of past bidders and buyers and to surrounding area residents of the property. We utilize local and regional newspapers to create interest in and around the area. Signs marking the property are important to identify the property. One of the most important aspects of the marketing campaign is our websites. Schrader Fort Wayne and our home office of Schrader Real Estate and Auction each host custom designed websites for the auctions to be posted on. Photos, Videos, Maps, and a plethora of information pertaining to the specific property are all posted for review. Along with the internet websites, Schrader utilizes several other web sites such as Facebook, and several other Land web sites.
Schrader agents also enjoy spending time on the road meeting with and greeting prospective buyers in the area. Building relationships is all important for our Schrader team. Getting to know the prospective buyers’ motivation and wants and needs helps the Schrader team put together the Buyer with the whole or part of a particular property.
So, it’s Auction Day! This is where it all comes together! Sellers expectations are high! Buyers are anxious to Buy!
So this is the cliffhanger. I will discuss a Schrader “Auction Night” on my Blog #2.
Thank you for reading my inaugural blog.
