Real estate auctions turn humdrum home sales into a fast-paced spectator sport, thanks in large part to the rapid-fire chant of the real estate auctioneer. To give you a peek behind what it’s like to step up to that podium, I spoke to Beth Rose of Beth Rose Auctions in Maumee, OH. Here’s how she got her start, why real estate auctions have exploded in popularity, and what investors should know.
How did you become a real estate auctioneer? “I come from a family of auctioneers. My dad was a real estate broker who sold his Century 21 franchise back in the ’80s, went to auction school, then opened Rose Auction Group. I was 16 at the time and thought that was bizarre, because my image of an auctioneer was someone in jeans, a cowboy hat, and a big belt buckle. My dad? I never once saw him in jeans; he even mowed the lawn in his dress pants. My younger sisters and I started out working at auctions as the hot dog girls, then graduated to setup, and then we eventually went to auction school. My dad set us up as competitors. He passed away in 1998, but we’ve continued his legacy. I went to auction school when I was 18, so I’ve been an auctioneer for about 40 years and now teach at auction school. My three sisters are auctioneers, and my daughter is now a third-generation auctioneer. Even my 6- and 8-year-old grandkids can auction.”
Do you remember your first auction? “I was 24 and wore a pink suit to an auction on Vogel Street in Toledo. I got out of the car and fell into a mud puddle. I was so nervous, I didn’t sleep the night before, I was covered in mud, and… I sold the house! I realized how I sounded and looked didn’t matter since they wanted what I had.”
Can you tell me more about that rapid-fire chant auctioneers are famed for? “In order to get your rhythm and momentum, auctioneers use filler words. You have this number, you’re asking for that number, and the stuff in the middle is filler. Mine are ‘woulda go, woulda make it, woulda bid…’ I’m so used to saying them that I actually have to think about it. There’s an art to it. I’ve done auctioneer competitions where you’re judged on bid calling, clarity, rhythm, poise, and presentation. I won the International Auctioneer Championship in 2016 and beat my daughter, Sara, by a tenth of a point. Sara won in 2017.”
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Are auctions on the rise? “Oh my goodness, yes—not just with foreclosures but regular homes, too. Sellers love auctions because there are no contingencies with the offer and the sky’s the limit. Buyers love auctions because of the transparency: You get to choose when you bid, at the time you want to bid, you can do it on your phone, online, in person, and it’s definitive that day. All the due diligence has been done prior to, or it’s waived. Everything in life these days is about speed and convenience. A live auction takes between 12 and 20 minutes. An online auction might last for a week, then get really busy in the last 15 minutes.”
Got any advice for investors on buying at auction? “With foreclosures, investors can get a heck of a deal. They can grab properties at auction, clean them up, then flip them or keep them as rentals. One of my investors called me to say that he just made $170,000 on a flip, $110,000 on another flip. But before you bid on a property, it’s important to ask all the right questions. Read through those terms at the auction and know what they mean.”
Do bidders ever get carried away and regret their purchase? “Not typically because when you win at auction, it’s an adrenaline rush. I’m sure buyer’s remorse has happened, but usually it’s when people couldn’t come up with the money. In that case, you just go to the backup bidder.”
What’s it like having everyone in your family in the auction business? “We’re all the best of friends, but also fierce competitors with each other. It’s made us at the top of our game. We just can’t talk about real estate or auctions at the dinner table with our mom. It drives her crazy.”