Why Should I Have An Online Auction?
What Driving in the Fog Taught Me
For the longest time, I struggled to explain the benefits of Timed Online Auctions to potential sellers. It was frustrating, especially when I felt an online auction was the best option to sell their farm. It was one of those concepts I could easily comprehend, but I couldn’t quite find the right words to help explain to clients.
I specifically remember one auction where I knew the farm tenant was planning to sit in the front row. This not only had the potential to cause other bidders to feel pressured but, ultimately, deter them from bidding. In the end, the sellers barely achieved their reserve by a mere $17 per acre. At DreamDirt we represent the seller, so this result was just as much of a disappointment to us as it was the family. I couldn’t help but wonder what the results would have been if they had taken our advice to use a Timed Online Auction.
Online Auctions and…Fog?
It wasn’t until I was experiencing a very stressful, foggy drive at night that I found the right words to explain Timed Online Auctions.
After driving two hours at 35 mph, my knuckles were as white as the ghostly, thick fog that blew in front of my headlights. My speed made me nervous- someone could rear-end me, but at the same time I might run into a slower vehicle ahead. As I approached a particularly bad spot I leaned forward, squinted my eyes, and reached over to turn the radio down so I could see better.
Wait, what? Why did I just turn the radio down to SEE better?
At that point, there was no time to analyze it- but the thought stuck with me.
Upon reaching my destination, I turned to Google for answers. I learned that I wasn’t alone in turning down the radio to see better. In fact, the action is referred to as “cognitive load”. I came across a study that further explained the act of reducing noise to improve a person’s vision. The article stated how the human brain strives to minimize distractions in order to concentrate on the task at hand.
The Perfect Correlation to Online Auctions
All of a sudden, it clicked! Driving in the fog is a stressful process. Attending a live auction where a bidder might spend $500,000+ is stressful. Live auctions produce social pressures, bidder friction, and stress. We are asking a person to perform just one task – bidding. However, during the process a bidder makes math calculations, contemplates bidding strategy, and more. What’s even more daunting, this must be performed in the framework of the bank’s rules, societal rules, and familial rules – all the while considering the cost and risk analysis of the transaction.
Whew, that’s a lot.
Driving in the fog taught me that the more stress we are able to remove from the experience, the better our customers and clients could perform at their highest cognitive levels. They would be able to bid free of those thoughts and stresses!
Want to learn more about online auctions, or dig deeper into how this option reduces bidder stress?
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CAI Auctioneer, Land Broker
Founder, Auctioneer, Broker, and Agent at DreamDirt, Jason Smith is a lead farm real estate professional in the Midwest. He has achieved the pinnacle of auction education earning the CAI designation and is one of only 11 CAI auctioneers in Iowa. Jason graduated from the World Wide College of Auctioneering, and has achieved the PRI designation from the Professional Ringmen Institute. Jason and his wife founded DreamDirt in 2005, and the company continues to be a leader in the farm auction space and prides itself in offering extensive land seller and buyer information.
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