$468 Per Pound Beef?

Grand Champion Houston Steer Brings $345,000

$468 Per Pound BeefWhen the Grand Champion Steer at Houston goes across the auction block it is a sign the stock show season is over. An Anson, TX teen was a bit shell shocked when the show judged slapped the teen’s steer 1,283 pound Charolais named “Playa” on the hip, signaling the Grand Champion of show. Not just any stock show, the granddaddy of all stock shows, the Houston Livestock Show & Rodeo. The 15 year old will take home $75,000 of the proceeds while the remaining will be used by HLSR for scholarships.

A unique surprise at this year’s auction was country recording artist, Zac Brown achieved high bidder status at $330,000 for the reserve champion steer. Mr. Brown credits his ability to succeed in the music business to his experience as an FFA member in high school. Mr. Brown stated that he was thankful for his FFA opportunity, and the success he has achieved in the music business and wanted to give back. That is a story in and of itself.

“Playa” might have neared the $500lb mark but he did not come close to the $600,001 record set in 2002. With the disparity between “Playa” and the 2002 champion it makes one ask “Why not opt to list the steer with a cattle broker, why not put an ad on Facebook, etc?” Because markets change. The cash market within corporations and wealthy supporters has changed in 15 years. When the markets change new values are established, sometimes higher, sometimes lower.

Auctions obviously provide more excitement than a listing with a cattle broker or social media ad. More importantly an auction puts all interested parties in one room to compete against each other financially for ownership or in the case of stock shows and Mr. Brown the opportunity to give back and change lives of young people.

For the full story visit the Houston Chronicle article.

~Brent

 

Multi-Parcel Land Auctions and Puppies

My Favorite Auctions…

I hope that if a person spends five minutes with me they walk away knowing I have a passion for auctions. My favorite auctions  are Multi-Parcel Land Auctions. Multi-Parcel auctions  offer large tracts of land in smaller tracts, typically a farm or ranch. These auctions allow bidders to bid on the smaller tracts individually or any combination of those tracts including the entire offering and everyone competes against each other. Multi-parcel auctions are the most complicated but to me the most exciting because of the hyper-competition they create.

A successful Multi-Parcel typically takes 60-90 days of preparation by our entire auction staff. We literally have the marketing timeline on special software to make certain we hit all the marks to assure success. Then on auction day all of our hard work gets graded by the marketplace. As the auctioneer in a Multi-parcel it is important to know the buyers, their motivations, their desires and their plans. Our bid assistants do most of the work, they make me look good while I feel like the ringmaster under a big top. When the bidding is done and I slam the gavel down on a multi-million dollar real estate auction I know I am doing what God made me to do. These auctions incorporate my love of the land and the free market expressed through auctions and I am like a little kid with a shiny new toy in a sandbox. Land auctions are my drug of choice.

I Hate (selling) Puppies…

A few years ago our family had a female Rottweiler and an opportunistic male Australian Shepard. We looked up one day and the Rottweiler had given birth, not to a litter, but a herd of puppies…14 to be exact!!

puppies and auctionWhat does one do with 14 mutt puppies you ask? Anything they can. Four died within days of birth, which gave some relief. We sold as many as we could, gave as many away as we could and still had two males left. Needless to say we had run out of friends. It was like we were peddling Amway to everyone we came in contact with. Friends stopped going to church for fear we would put a puppy in their truck during Sunday School.

Every good auctioneer has a plan. Luckily at about the 8 week mark we had a large business liquidation auction coming up. We took the two puppies, had the kids carry them around and announced we would sell them at 12 Noon and donate the funds to the local no-kill shelter. Sounds like a great plan, right?

I started auctioning the first pup and things began to fall apart. He was staring me down with, you guessed it, puppy dog eyes. Here I was the only adult human male figure he had ever known and I was selling him off to the highest bidder. I gotta tell you, I felt as low as a snakes belly when I called that pup sold. If memory serves correctly he brought $500 or $600. A very large man with a full white beard was the high bidder and I have no doubt they made a great pair. The second pup brought considerably less, I think $100-$200. When I called it sold I saw the err of my ways. Let’s just say this buyer did not seem as loving as the first buyer. I fear he had big plans for that dog and to this day I still cringe when I think about it.

After the pup auction, I turned to Ashley and said “I’ll never sell another dog at auction as long as I live”. I have since made the exception of selling older puppies at benefit auctions like Ducks Unlimited and NRA. With that one exception, I will buckle up and own too many dogs myself before I sell another puppy at auction.

When people ask what is the oddest thing I have ever sold I struggle to come up with an answer, there have been several. But the hardest lots I ever sold had wagging tails and puppy dog breathe.

~Brent

Tom Brady’s Stolen Jersey Estimated at $500,000?

Auctions Determine Real Market Price

Tom BradyThis past Sunday, NBC Sports reported Terry Bradshaw’s playoff jersey from 1977 fetched over $66,000 at auction! Included in the same auction a Franco Harris jersey went above $60,000 and a  Mel Blount jersey topped $40,000. (You can read the full article here) Take note that when the rich and famous sell their prized assets they use the auction method of marketing to establish the market price.

The official police report states the value of Tom Brady’s missing jersey at $500,000. With realized prices of the Bradshaw, Harris & Blount jerseys the estimate may be pretty close considering the historical Super Bowl significance of the Brady jersey. Or is it too low? How do you price such an item? Simple, you let the market decide. Now that the jersey has been stolen and taken on a life of it’s own with it’s very own provenance the estimated value may prove too low if in fact it is ever returned to Mr. Brady and placed on the auction block. It may very well be the most famous football jersey in the world.

Terry Bradshaw, Mel Tillis and an auction crew…

Speaking of Terry Bradshaw… About 15 years ago I worked the Branson Collector Car Auction. In those days the auction was held at the Mel Tillis Theatre in Branson, MO. The auction lasted all day on Saturday and most of Sunday. One caveat to holding the auction at the Mel Tillis Theatre was that the auction on Saturday must be completed by 6PM so Mel’s show could go on.

Following the auction, several of the auction staff had a rare opportunity to converse with Mel’s longtime bass player. He entertained us with stories of being on the road with Mel and the rest of the band. Several of those stories included Terry Bradshaw. While I cannot share some of those stories on this page, I can say that those days in the 1970’s and 80’s must have been highly entertaining while in the presence of Mr. Tillis and Mr. Bradshaw. Few people can make me laugh like Terry Bradshaw, I’m sure unhinged and without cameras he would keep you in stitches.

The bass player wrangled us up some tickets for Mel’s show and while Mr. Tillis was well into his 70’s he never missed a beat and put on an awesome show. The auction profession has allowed me the distinct opportunity to travel all over the U.S., meet some great people and hear some fascinating stories.

Maybe someday I will get the opportunity to auction off Mr. Brady’s famous jersey. The odds are slim, but in this business you never know.

~Brent

 

Major Advantages of Real Estate Auctions over Conventional Listing

Auctions have many advantages for the seller over conventional listing methods.

for saleReal estate auctions offer many advantages in today’s market. Sellers typically prefer not to wait months or even years to receive an acceptable offer on their property. As a seller, you ideally want an offer as quickly as possible to turn a page in life and to move on. The auction method of sale is the only suitable choice for that situation. Selling real estate by auction is perfect for sellers who need to sell quickly but receive market value. The auction method of marketing is extremely important to establish market price on unique or large properties with a very small pool of potential buyers. To put it simply, a real estate auction establishes true market value of a specific property in a specific marketplace on a specific day.

The benefits of real estate auction greatly outweigh the mainstream listing method in many cases.

Put the Markets Focus on YOUR Property – An auction showcases your property to the marketplace, providing maximum visibility to the target market. Potential buyers must decide on your property first as it is date certain and will not be on the market past the auction date. In a conventional sale environment, your property will just be one of many (currently over 20,000 on our local system) that are minimally advertised in the Multiple Listing Service (MLS). At Alliance we belong to four of the major MLS systems in Texas. We place your auction on each system to notify all real estate professionals that your property will be sold at auction and invite them to register their buyers.

Lightening Fast Market Price –  Real estate auctions offer a marketing timeline for a residential property of 30 days, a large ranch takes 60 to 90 days. Mainstream listing methods typically take months for single family homes and years for large ranches. Real estate auctions compress the marketing timeline and notify all potential buyers that auction day is the day to buy.

“Real Estate Auctions take the control away from the buyer and gives it back to the seller”

The Sky is The Limit –  An auction does not have a ceiling when it comes to price. I doubt any auctioneer in World History has ever said “I’m stopping the bidding, it’s too high.” Auctions allow the market to speak for itself, that’s why world record prices are established at auction not by seller pricing. Conventional listing methods allow the highest possible price to be capped by the seller´s asking price.

Contingencies? We Don’t Need No Stinkin’ Contingencies – Properties offered at auction are sold “as-is”. This means the high bidder cannot back-out of the auction purchase contract without risking their escrow money because of inspections or lack of financing. Experts have estimated conventional sales have a fallout rate as high as 50% because of contingencies. This wears on the seller’s emotions and lengthens the time it will take to sell their property even more.

No Negotiation Zone – The auction method of marketing real estate pits buyer against buyer. This allows the seller to sit back and enjoy the escalation of price since the terms and conditions of the sale were established by the seller prior to the auction. Conventional sales processes pit the buyer and seller against each other causing an anxiety-ridden back and forth, sometimes for days or weeks. Many times, this results in strained relations between the buyer and seller even after negotiations have been settled.

True Market Value, NOW –  Markets ebb and flow faster and more often than ever before in World History. Real estate values can drop dramatically over the span of a 6 or 12 month listing agreement. When you are ready to sell, real estate auctions provide the catalyst to determine the true market value of your property within 60-90 days. All too often the conventional listing process starts out with overpricing a property immediately killing the interest of potential and serious buyers. At an auction, the fair market value of a property is established and goes up from there.

Timing, It’s Everything –  Real estate auctions allow the seller to control the marketing process on their chosen timeline. Conventional sales methods guarantee that sellers will play the waiting game. Sellers will wait on buyers to show interest, wait on them to come see your property, wait on them to make an offer, wait on them to accept your counter offer and wait on the option period to expire. But with an auction you have more control. Auctions are the fastest way to seriously move real estate because much of the waiting is simply eliminated.

Offers, Let’s Get a Bushel Basket of ‘em – In a conventional listing you rarely get multiple offers. If you do it is likely a good sign that you are under-priced. Typically, you can expect a painstaking process of waiting for an acceptable offer from a qualified buyer. Industry experts predict the average listing gets nearly three offers before an acceptable offer is made, but those offers are not at the same time. With an auction, you will get many offers presented on auction day until the highest and best offer is determined by the auctioneer. That’s the only one you wanted when you decided to sell.

Don´t waste time on often ineffective conventional listing process. Selling real estate by auction is the new way to get it done.

Alliance Team Comes Through for Erath County Taxpayers

Auctioneers Swap Retired Equipment for Cash. Taxpayers win.

Alliance Auctioneers hosted a heavy equipment and vehicle auction this past Saturday. Erath County Commissioners consigned retired and surplus equipment that was sold to the highest bidder. A few notable items include: a 2000 CAT 345BL Excavator for $49,000, a CAT 953C Track Loader for $39,000, a 2014 CAT 272D Skid Steer for $34,100 and a 1992 HUMVEE brought $16,500. We would like to thank the 311 registered bidders from 12 states and three countries that participated in the auction and Erath County for allowing us to work for them.

The Alliance team builds redundancies and what-ifs into all major components of our auctions. It is never fun to actually have an occasion to engage those plans. While our mobile office trailer generator had recently been serviced and had run like a top Wednesday – Friday it let us know on Saturday morning that it really wanted to stay in bed. Somehow, something had drained the battery overnight. No big deal, a quick boost off with a pick-up and we were off and running – so we thought. The battery was so weak that when certain printers would get ready to print it would kill the generator. Again, no problem we called in a back-up generator and were up and running with full functionality right before auction time.

Once the auction started we realized that our cell service providers signal had gone from four bars all week to one bar and slow if any data service at the location. Once again, we enacted our back-up plan and hard wired into the neighboring business’ internet and relayed the bid information from the computer to the sound truck.

Murphy’s Law…

It seemed everything that could go wrong mechanically did. However, our team functioned with a high degree of professionalism and a “Get it done attitude”. This attitude and teamwork allowed us to achieve much better than average prices for the equipment on hand.

Thanks again for all who participated and thanks to a great Alliance Team effort! On to the next auction…

 

heavy equipment and vehicle auctionThere was some great news. Along with our friends from Lone Star Ag Credit we were able to raise nearly $1,000 for Backpack Buddies. Backpack Buddies sends meals home with school children over the weekend that might not have a meal otherwise. Alliance is proud to support our community and the many deserving charity and benefit events that make our city a great place to live.

Auctions Eliminate Holding Costs and Overpricing

overpricing costs youThe market always has the right answer; you just need to know how to ask the right question. Auction?

This past April a friend contacted me about selling his 100-acre horse ranch. He and his wife were going through a divorce and the court was appointing a receiver to sell the property. The auction method was a perfect solution – achieving market value and reducing holding costs and time. Time was important because each party was responsible for this property as well as their own, separate household. Reducing the marketing time would increase their net from the property and complete the divorce proceedings.

As we do with all real estate auction properties we conducted a thorough price expectation evaluation. After completing our evaluation, we set an auction expectation of $700,000 to $800,000. The estimated expectation did not set well with either party as they wanted over $1,000,000. The couple’s expectation of price was one of the few areas of agreement. Enter the traditional broker with a suggested list price of well over $1,000,000. Husband and wife, eager for the highest return agree that the broker should list the property and thus the broker was appointed the receiver and ordered to sell the property.

Several price decreases and 10 months later the property closed! Sales price? A whopping 54% of the original list price! Originally listed for $1.2 million the property closed for $650,000, much to the disappointment of both husband and wife. I wonder how the parties would have taken it last May if the broker said “I’m going to list it for $1.2 Million but I’m going to actually sell it for $650,000.” I reckon the auction method would have been a much more acceptable option.

Overpricing is bad for the real estate professional.

The practice of overpricing by this broker to get the listing cost this couple an easy $100,000 in additional and unnecessary holding costs and sale expenses. Auctions are truth serums. As experienced real estate auctioneers, we know that our papers will be graded by the market within 60 days of discussing price expectations with the sellers. Our rigorous method of evaluating price is time tested and proven. However, it is not always welcomed news for sellers to hear.

The professional real estate industry will continue to suffer until we, as an industry, deter the practice of overpricing. What if sellers told listing agents “If my property sells for 85% or less of your suggested price I don’t pay you any commission”? I suspect we would stop pulling list prices out of the clouds and get a bit closer to market value.

We at Alliance Auctioneers will give you an honest assessment of your property – every time. We will get up every day and keep working to change the perception of the oldest, most proven marketing method on earth. Auctions work!

Welcome

Alliance Auctioneers teamWelcome to the new and improved Alliance Auctioneers website.

Our team has known for some time that we needed to revamp our site. As with anything in business, it just takes time and money. When we decided to move forward wanted to do three things: 1) provide you with information about upcoming auctions, 2) educate you about the auction process and, 3) show you who we are as auctioneers.

This new site is a success! It provides you a portal to bid on items and learn more about our industry as well us who we are as professional auctioneers. Today’s public is not as versed in auction knowledge as previous generations. Much of that gap comes from more people growing up in urban areas versus farm or rural areas. Farm and rural areas have historically had more auction activity where young people were exposed to live auctions. To help you become comfortable with the auction process we want this page to be an educational resource into the exciting world of buying and selling by auction utilizing professional auctioneers.

Alliance never wants the fear of the unknown to prevent someone from attending any live auction event. Therefore, we are dedicating a large portion of this website to educating the you. As time goes on you will see short educational videos, pictures and blog stories of auction successes and failures from around the auction globe as well as other auction and auctioneer educational content.

No Experience needed…

If you are new to auctions we invite you to learn from our website and visit us at upcoming auctions. Upon arriving at any of our auctions simply inform any uniformed team member that this is your first auction. You will be introduced and paired with one of our bid assistants that will walk you through the process. Our bid assistants will hold your hand during your first few bids until you are ready to fly solo.

We hope you enjoy our new website and we look forward to seeing you at an upcoming auction very soon.

Biddingly yours,
The Alliance Auction Team