Ray Carman – Auctioneer

Here is the common question an Auctioneer hears when speaking to a family or client about an Auction. “What if someone only bids $1,000 and buys my house? What then? Shouldn’t I put a reserve on it to protect myself?”

It is a common misconception that all auctioneers are only out to make money and thus they do not have your best interest in mind. Now are there some out there like that? I am sure there is. However, bad news spreads fast and someone who is only concerned about their personal interest or pocketbook as an auctioneer will not usually last long. A bad reputation in this business will absolutely KILL you.

So back to the question, Why would an Auctioneer recommend an Absolute Auction vs one with Reserve (where the owner or heirs can reject the final bid). Here is a few things we have learned over the years of our Auction experience:

1. An auction that is Absolute will attract a larger crowd and larger crowds means more bidders and potential higher bids.  Why? Because competition levels increase simply by the sight of more “potential competitors.”

2. An Absolute Auction has a proven history of obtaining higher bids, as much as 15-25%. This is connected again to the psyche of the bidders. A person is is guaranteed that they are going to go home with the prize if they are the final bidder increases their desire to be the winner. Someone who is uncertain if the are going to win or be REJECTED at the end of the day, will not go all out in their bidding. This is a fact we have proven through our own history of auctions that have dated back to 1910.

3.  Many people will not even come to an Auction with reserve! Why? Because their time is valuable and they do not want to waste their time. So give an investor, buyer, or collectible seeker the choice between two auctions, one being Absolute the other with reserve, they will pick the Absolute Auction 9 times out of 10. Again, we can prove this simply through our own experience in crowd turnouts over the years.

So why go Absolute at your Auction? Because it absolutely is guaranteed to bring you, the sellers, the best results. Too many times you will see an ad for an auction that is not absolute, and truth be told, the Auctioneer could have saved the seller some money by being honest up front and letting them know it was not in their best interest. An auctioneer who knows his market place should be able to determine before starting the process if your place will bring at auction the amount you are looking for. If it is an estate with no debts, then in reality, there is NEVER a reason for it not to be absolute!

A quick disclaimer, if you have a mortgage on the property, you cannot go absolute without the lenders consent. However, in most cases this is something the Auctioneer can negotiate with the lender on.

If you have auction questions or needs, please feel free to give me a call (615-428-4920) or email me at RayCarman@gmail.com.

Ray Carman – Gene Carman Auctioneers – your Middle Tn and Southern Ky Auction specialist!

In any profession, this is not necessarily the easiest thing to do. When things are tough, sometimes it is easiest to do what will make YOU the most money. This is even more natural when things in your chosen profession are not going very well.

When I was a wee young fellow, my Grandfather and Father were very persistent in practicing and preaching “Honesty and Integrity.” They preached it so much that sometimes my ears hurt. But what really stuck was how they lived it. I sat in so many meetings growing up and listened to each of them, together and individually, turn down business because it was not in the clients best interest to hire them for the job.

Again, recently, this happened again as my father called and ran a scenario past me regarding a potential auction. We discussed the facts as they were presented to us, and it was evident that our services were not best suited for the client and in the long run would do him more harm (cost him more money) than good. Needless to say, the potential client was shocked to hear it when we did not recommend an auction for his case and were therefore not going to take the job. After explaining the our view points and the risk he was taking, he was still willing, however, we knew it was not for his best.

Now, could we have taken the job and made some money? Yes! But at what price? If we knew the property was not going to bring what the seller was wanting, and yet we went forward anyway, then not only is he then stuck with a property that has an “auction price” attached to it and leaves future buyers sending in low bids, but it also leaves a mark on the reputation of the ability of the salesman to do his job. It is good for neither side.

However, as the years have passed, and several of those clients who were “turned down opportunities”, have surfaced again and again, they now tell folks that what my Grandfather and Father did, in turning them down, was the biggest favor they had ever had. Some even went on to try other companies seeking fast paydays, and found that what they had heard from Gene Carman was true, and oh how they wished they had saved their money and listened. And what has that meant for our future business? Alot!!! Honesty and Integrity go a LONG way, even if it does not put money in your pocket today!

All that to say, even when times are hard, Doing the Right Thing ALWAYS pays off in the end!

Ray Carman

This has to be the most common question any Realtor or Agent has been asked recently? The answer to this question is inevitably going to be subjective to that particular agents current activity in the market. Personally, things have been better than what folks consider the norm according to the media’s take on what is going on. This is COMPLETELY due to the help and referrals of friends and family! Without this life source, any Realtor or auctioneer has no ground to stand on!

However, I like to simply take a look at the numbers. So here is the numbers for June and July in Sumner County TN.

In June 2008, 222 homes closed in Sumner County. The average sales price per square foot was $97.34 and overall was $215,416.

In June 2009, 197 homes closed in Sumner County. The average sales price per square foot was $91.40 and overall of $211,509. This represents a 12% drop in volume and only a very small drop in price of 2%.

In July 2008, 221 homes closed at the average of $101 per sq ft, or $237,933.

In July 2009, 202 homes closed (only a 10% reduction in volume) at the average price of $92.27 per sq ft, or $205,865. a 10% price reduction overall!

So how is our current market? I think the answer is in the numbers! As the media flaunts huge issues nationwide, I think there is a reason to be optimistic here in our corner of the world, Sumner County TN!

If you would like to discuss a more localized look in a specific town, feel free to let me know!

Ray Carman