PROGRESS DEMANDS CHANGE
CHANGE CREATES OPPORTUNITIES
The ‘Sellers Reserve Auction platform’ will be a game-changer for the U.S. Real Estate market.
Sellers Reserve is designed to partner with local agents and brokers to:
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Provide a modern and strategic selling option for homeowners
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Exponentially enhance the standard of real estate marketing
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Support and enhance the level of real estate professionalism
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Disrupt traditional real estate practices
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Offer a distinct point of difference
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Validate current commission rates
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Keep agents at the center of the transaction
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Expedite the selling process
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Reduce stress and increase productivity
1.5% premium is paid by the seller or included and deducted from the
gross commission
This fee covers the entire auction process as well a high-end media and
marketing campaign
Over the course of the last five years, I have identified both strengths and weaknesses within the Californian real estate sector. There are aspects that work well and characteristics that are holding the industry back. It is safe to say, as it is in most parts of the world; the current status quo provides much room for improvement. This in turn provides huge opportunities for pioneers with the vision, the ability and the capacity to introduce innovative solutions that will take real estate representation to new heights.
Michael Mahon
Sellers Reserve
INTEGRATING: TECHNOLOGY | TRAINING | MARKETING | STRATEGIC METHODOLOGY
The model you are about to be introduced to is, in essence, not entirely new. It does however bring together elements of traditional selling practices, modern-day marketing tools & strategies, technology and training designed to enhance the value and significance of the ‘real estate professional’.
Currently, we are experiencing a ‘seller’s market’. Such conditions are driven by a myriad of factors, one of which is low inventory relative to the number of buyers. ‘Time on market’ is also at historically low levels. Therefore, it would be reasonable to ask, “So why bother auctioning?” In short; the only way to truly capitalise on such strong market conditions is via a modern and strategic Sellers Reserve Auction. More on that later!
Market conditions change, they always do. This market too will change. Regardless of market conditions, Auction offers many advantages. The Sellers Reserve is here for the long game.
Within the U.S. auctions are largely misunderstood and misrepresented. Whilst auctions are gaining traction in some areas, the process remains clunky. The only reason auctions have not taken of in the United States is because there is not a viable, attractive and user-friendly platform or service available.
We are going to redefine the meaning of ‘auction’ within the United States. We are going to completely streamline the selling process and blend together the essential elements of ‘real estate selling success’.
The ‘Sellers Reserve Auction & Marketing Platform’ is an affiliate ‘plug-in’ service to support agents and Brokers. As collaborators, we support agents, Brokers and sellers by providing advanced selling and marketing methodology together with the platforms, the training, tools and personnel they need to perform and succeed.
The cornerstone of our entire function is the ‘Sellers Reserve Auction’.
WHAT IS A SELLERS RESERVE AUCTION?
As a method of sale, property auctions are gaining traction worldwide.
A ‘Sellers Reserve Auction’ differs from a distressed auction in that the seller and their agent is in complete control. The seller will only sell should their minimum price, referred to as a ‘Reserve’ be reached or exceeded.
The ‘Sellers Reserve Auction’ is a strategic method of sale that combines structured selling practices with modern marketing techniques.
Following correct preparation, each property is launched onto the market and made available for viewing by prospective buyers, for a set period of time, usually two (2) to four (4) weeks. On auction day, buyers register to bid and should the final bid reach or exceed the sellers reserve, the property is SOLD unconditionally. No contingencies.
8 REASONS TO CHOOSE THE SELLERS RESERVE AUCTION?
So long as the ‘Sellers Reserve Auction’ is run professionally, strategically and transparently there is NO negative to this selling method that cannot be managed and/or mitigated. There are however huge benefits and advantages.
Remember market conditions change! Currently, we are experiencing a strong seller’s market. Long may this last! As history shows, however, this too shall pass.
In a seller’s market, the seller should capitalise on such conditions. The best way to truly do so and achieve absolute top dollar, is to put buyers into a competitive arena.
In a buyer’s market, inventory levels are usually high. As a seller, traditionally you are faced with a conundrum! If you want a timely sale, you have to price your property lower than all the rest. If you want a premium price, you have to wait for the others to sell. The problem with this approach is, a: new listings are hitting the market all the time. b: market conditions may deteriorate further.
Regardless of market conditions, as a ‘Selling Method’ The Sellers Reserve Auction provides the following benefits.
01. NO ASKING PRICE...
The first thing to understand and accept is ‘Price’ or ‘Value’ is subjective. Whenever a seller places an ‘Asking Price’ on their property, they face two very real risks. The first risk is under-pricing the home. It may sell quickly and with ease, but at what cost to the seller? Could they have achieved a higher price?
The second and often more detrimental risk is overpricing the property. This happens regularly and the property ends up sitting on the market for an extended period of time, growing ‘stale’ and subsequently becoming less attractive and less appealing to buyers. ‘Market perception’ has been adversely affected resulting in a lack of interest and low or no offers.
Remember ‘Time on market – Kills price’.
The ‘Sellers Reserve Auction’ allows you to market your home for sale without a fixed price. This negates the risk of underselling it as well as overpricing it, where it risks growing increasingly stale in the marketplace.
Having no asking price avoids deterring buyer interest, based solely on the ‘Asking Price’.
Having no set asking price eliminates ‘Value Comparisons’ to competitive properties on the market at the same time.
Taking the focus off price in the beginning forces the buyer to focus on the home and its entire offering or ‘value proposition’. They are not being swayed one way or the other by ‘price’.
Price is the first thing to suppress buyer interest and kill a sale. As such it is should not be addressed until the buyer has reached a ‘desire to purchase’.
THERE’S NO SECRET TO LOSE WEIGHT
02. ATTRACTION BASED CAMPAIGN...
Auctions send a signal to the market that the seller is a serious and committed seller. This is attractive to buyers and assists in securing buyer attention and their subsequent interest in the property. Buyers are very attracted to this perception.
Correctly sold/explained auctions create the perception that the buyer is in control; “The seller is committed to selling and only wants fair market value…”
“Would you purchase this home if you got it at the right price?”
In actual fact, so long as the buyer is furnished with all relevant information, has pre-approved finance and bids within their predetermined limits, there is nothing scary about this buying process.
There are however several upsides which I will address later.
03. STRUCTURE...
The ‘Sellers Reserve Auction’ adds real structure to the selling process and greatly assists in securing, maintaining and managing buyer activity, behaviour and focus.
Without structure a ‘Selling Campaign’ has no real direction or plan. It is simply ‘on the market’ with the agent and the seller hoping (and often waiting) for a result.
This traditional approach costs time and in many cases money to the seller.
When these properties sell it is a case of ‘success by default’ rather than ‘Success by
Design’, which is reflected in the final sale price.
THERE’S NO SECRET TO LOSE WEIGHT
04. TIME ON MARKET...
‘TIME: FRIEND OR FOE!’
The Sellers Reserve Auction puts a ‘start’ date and a proposed ‘end’ date to the selling and marketing campaign. It channels the buyers into a process that is designed to produce a timely result, a premium price and a non-contingent contract of sale
As Auctions are available for a short and set period of time, they usually attract more buyer activity in the first instance. Properties ‘for sale with an asking price’, often lack a real sense of urgency resulting in reduced activity levels.
Maximum price is achieved on the back of ‘buyer urgency’. Buyer urgency is created when buyer activity is maximised.
Maximum Activity = Maximum Price
As auctions have an ‘end’ date or a ‘sale’ date they usually attract more buyer activity in a shorter period of time.
When you study online buyer analytics, regardless of price-point, it clearly shows that buyer activity on new listings peaks within the first 2 weeks, before plateauing and then rapidly declining and flat-lining.
05. SELLER CONTROL & PROTECTION...
At ‘auction’, the seller is protected by their reserve price. If this figure is not reached or exceeded, the seller can choose not to sell. Simple.
If and when sold under auction conditions, the sale is noncontingent. This means it is not subject to a building and pest inspection, it is not subject to finance approval or valuation/ appraisal. Nor is it subject to a ‘cooling off’ period where the purchaser suffers buyer’s remorse or finds a ‘better’ or cheaper property.
Typically, at ‘auction’, you receive a 5-10% deposit and you dictate the settlement period.
If the property does not sell under ‘auction’ conditions, we simply transition into phase 2 of the process – ‘post auction’.
THERE’S NO SECRET TO LOSE WEIGHT
06. INCREASED
COMPETITION...
By its very nature, the auction process puts buyers into an environment where they are competing against one another, as opposed to competing directly against the seller. Initially this protects the seller by keeping them out of the direct line of fire!
There is no greater sense of ‘buyer urgency’ than that created when the buyer knows the property is ‘on the market’ (Reserve has been reached) and a sale is seconds away; the hammer is about to come down! Buyers respond, they don’t want to lose or miss out. They go that little bit more. This is where and how sellers achieve fantastic results.
07. IT’S A PROCESS...
By its very nature, the auction process puts buyers into an environment where they are competing against one another, as opposed to competing directly against the seller. Initially, this protects the seller by keeping them out of the direct line of fire!
There is no greater sense of ‘buyer urgency’ than that created when the buyer knows the property is ‘on the market’ (Reserve has been reached) and a sale is seconds away; the hammer is about to come down! Buyers respond, they don’t want to lose or miss out. They go that little bit more. This is where and how sellers achieve fantastic results.
Our accredited agents are trained to ensure proficiency and best practice from start to completion.
Should a property not sell under auction conditions, no big deal… we’ve only been on the market a couple of weeks!
We simply move into phase two of the process and negotiate one-on- one with all the buyers who expressed interest.
Importantly, the agent and the seller will have several buyers to negotiate with following the auction campaign.
A result is usually achieved within days.
THERE’S NO SECRET TO LOSE WEIGHT
08. MARKETING...
Selling real estate today is as much, if not more about strategic media and marketing, than it is about old-fashioned selling practices.
Fundamentally, auction is a selling method. However, unlike any other method of sale, an auction works synergistically with an ‘attraction based’ marketing program.
The ‘Sellers Reserve Auction Platform’ takes this natural advantage a step further by providing a platform and services that augments several strategic elements of property marketing.
Download Our Marketing Brochure
Our values are primarily and firmly fixed to that which best serves the client. "Clients best interest first and foremost”... This is the singular premise from which our business model has been created. Our Marketing Brochure defines what sets us apart from the rest...
WHAT IS THE SELLERS RESERVE AUCTION PLATFORM?
The ‘Sellers Reserve Auction Platform’ provides agents with a highly professional, efficient and effective vehicle for marketing and selling property.
Our state-of-the-art platform provides infrastructure that includes ‘Education’ direct to the marketplace as well as to the real estate industry (agents and Brokers).
We provide astute selling methodology along with the tools and personnel to support it.
We provide a marketing platform with ancillary services designed to assist the selling effort.
We provide a comprehensive agent centric CRM.
We provide social media along with promoting individual agents and their Brokerages.
We provide immense value and we provide relevancy in today’s modern world.
We provide a competitive edge and we provide exclusivity to both seller and agent.
This platform is designed to utilize our unique auction process, employ modern- day marketing techniques and capitalize on the current culture of agent co-operation. *
The real estate industry faces many real threats. Disintermediation of the industry is being pursued by tech companies due to the belief that the ‘value’ traditional real estate agents once provided is no longer there. Discount agencies are exploiting
‘commission resentment’ and using modern communication practices to decentralize
the traditional real estate office.
Our platform will directly aid the survival of our industry by providing tangible ‘seller value’ and real measurable results.
Within the U.S. the timing is perfect. This platform will enhance the value of real estate agents, it will keep their services relevant in a rapidly changing world, it will greatly assist in the protection of current commission rates and it’s something the discount agents don’t have to offer. It is for this reason, it will be well received by both the industry and the marketplace alike.
The ‘Sellers Reserve’ brings together strategic selling and marketing methodology with the collective power of professionally trained agents.
We will provide agents with all the training and coaching they need to sell the auction process, to successfully run auction campaigns and build a more efficient and productive real estate sales business. Our Member Agents will be ‘Accredited Auction Agents’.
As an organization, we will promote ourselves directly to the marketplace, to both sellers and buyers. We will educate and attract sellers to our astute selling methodology and guide them to our accredited agents.
We will explain the process to buyers, providing them with more information than traditional agents ever have and highlight the transparency of our platform.
We will secure agent involvement and participation via a membership-based model that provides agents with world- class training on an ongoing basis, an online marketing and selling platform, a fully customizable agent profile site, access
to a state-of-the-art CRM, marketing and social media services as well as tools that
differentiate them from competitor agents.
THERE’S NO SECRET TO LOSE WEIGHT
AGENT APPEAL
1. Our fees are paid by the seller.
2. Agents will have 7-day support and direct access to our Auctioneers and Business Development Managers.
3. Credibility in the marketplace – Our agents are accredited with America’s most advanced real estate sales & marketing platform
4. Their professionalism is massively enhanced.
5. Our platform provides each agent with a fantastic ‘Point of Difference’ to non-member agents.
6. Our members receive best in class Training & Coaching on an ongoing basis. Our training is all encompassing ‘holistic’ success training.
7. The ‘Sellers Reserve’ listing presentation is compelling, convincing and formidable.
8. All ‘Agent and Property Collateral’ is customized to the agent and their Brokerage.
9 .Agents will be able to offer prospective clients additional services including customized high-end property websites with individual URL's, QR codes, complimentary bank valuations/appraisals, comprehensive social media marketing and professional Auctioneers as standard.
10. Our Marketing Hub will provide cutting edge Marketing Programs. These packages will include photography, professional copywriting, cinematography, VR 3D walkthroughs, illuminated photo signboards as well as a professional property prospectus/brochure, digital floor plans, styling/staging consultation and more.
11. The agent will become much more productive as 'time on market' will be slashed. Targeting an average 'time on market' of 16 days.
12. Commission rates will be more justifiable and sustainable.
13. Agent profiles will be increased within their focus areas via the spectacle of live on-site auctions.
14. Agents that don't have a cutting-edge CRM will have access to our leading CRM.
15. Agents will have a viable alternative to the MLS. They can present their listings to the market without it being bastardized or cheapened by the masses.
16. Agents have complete control of the listing and their clients.
17. Agents have an increased chance of ‘double-ending’.
18. Listings are promoted to an up-to-date buyer database generated via our direct marketing, social media and by other Member Agents. We mail on behalf of the agent that submitted the contact details. The listing agent is always noted as the listing agent)
19. The culture of agent collaboration is maintained and fostered, but on a much more sophisticated level. Listing agents are collaborating with all Member Agents, some of which will obviously be 'buyer centric' agents. These buyers-agents will be qualified and accredited to guide and advise buyers who wish to participate in our auction process.
20. The standard of marketing will be improved and quality maintained, reflecting well on the agent’s professional status.
21. Member Agents will have dedicated, high-end agent profile websites exclusively for their own promotion.
BENEFICIAL FOR THE SELLER
As mentioned earlier our exclusive Auction Methodology and Platform provides...
Real and strategic advantages to the property seller.
The seller will find comfort and reassurance knowing their chosen agent has a structured plan and proven processes.
They will understand (through education) the advantages of the Auction process.
They will have a fully customized property website with an individual URL.
Typically, the sellers ‘time on market’ is significantly reduced.
In addition to the agents and Broker direct database and the MLS, the property will be promoted and exposed to member agents who will be encouraged to introduce buyers. This provides volume of activity and leverage as soon as the property hits the market. The buyers-agent will be remunerated at a minimum of 2% commission.
The seller will benefit from enhanced professional media and marketing.
Phase 1 of the Auction process keeps the seller insulated from all buyers. Buyers are competing against each other, not going head to head with them (the seller).
The seller is protected by their ‘Reserve’ price and should this figure be achieved or exceeded their sale is unconditional (no contingencies) in a little over 2 weeks.
Their property has set/scheduled viewing times and these ‘open homes’ are not an all-day event. These viewings run for just one hour. (recommended but optional)
The seller receives a complimentary bank valuation/appraisal.
The seller’s property will be promoted to the highest standard on all relevant social media. This will ensure we are engaging with the correct target market (demographic) from the outset, capturing both active and reactive buyers.
Ultimately all buyer enquiry and negotiations will be channelled through the sellers chosen agent with the direct support of our full-time Auctioneers. This provides the agent and in turn the seller with a greater ability to manage the sales process and achieve a premium outcome.
Their property will be promoted directly to our extensive and comprehensive buyer database.
Every Member Agent will be encouraged to bring (introduce) potential buyers to each and every property listed on our platform.
BENEFICIAL FOR THE BROKER/AGENCY
Brokers succeed on the strength of their agents. Providing a culture of encouragement, training and coaching along with support and marketing are essential to attracting agents, keeping these agents and ensuring they are productive. It’s a big job and it’s unrelenting.
‘The Sellers Reserve Auction Platform’ is Broker friendly. In essence, we are designed to be an affiliate partner in the listing, marketing and selling of residential property.
We are here to work with the Broker and their agents. In no way are we a competitor to any Brokerage.
We are an independent organization that provides their agents with additional tools, personnel and services designed to make them much more effective, productive and valuable to the marketplace.
We are here to help them earn and protect their commission rate.
Our fee is (should be) paid by the seller on top of the agents negotiated commission rate.
We do not favour one agent or Brokerage over another. Our focus is on helping the industry as a whole to remain significant, continue to prosper and to assist in taking real estate representation to new heights.
By helping sellers and agents we are inadvertently helping the Brokers they are associated
with. Yet, we cost the Brokers nothing.
BENEFICIAL TO THE BUYERS
Within the United States, the advantages offered by ‘auction’ as a method of sale have been overlooked. Auction methodology is misunderstood by both agents and the marketplace in general. The is due to a lack of viable and attractive modern-day platforms available to the marketplace. Once understood, sellers will like them.
There is actually no negative whatsoever that cannot be managed or mitigated. Agents will learn to love them, and Brokers will see the inherent benefits of this selling method.
The only threat to auctions here in the U.S. is buyer avoidance. Whilst that sounds like a scary proposition it is easily managed and addressed. Buyers will go where the listings are and buyers will be guided and influenced by informed agents.
Buyers will see the professional and transparent nature of our platform and be comforted by our approach, expertise and proficiency.
In simple terms, the solution or remedy to any threat is education and awareness across the board - sellers, Brokers, agents and buyers.
The benefits to agents, Brokers and sellers have been addressed. So where does that leave the buyer? If any buyer can avoid competition they will, it’s natural and it’s often sensible. However once a buyer ‘wants’ a property they will, as they do, compete for it. We already see competition at play via multiple offer situations, whilst this happens regularly, it happens in a very unstructured manner.
The first objective to achieving buyer connection is marketing. Engage the buyer, get them to the property and get them emotionally attached. Agents should be unapologetic in this pursuit, it’s their job.
If buyers are being sold on each ‘buying opportunity’ (there are strategies) and both listing agents and buyer agents are educated and ‘on-board’, buyer participation will follow.
Buyer resistance and fear is abated with professional and transparent conduct.
Buyers Will Enjoy...
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The professional representation of each property listing.
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The quality of content and comprehensiveness of information immediately on hand.
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The complimentary bank valuation/appraisal along with a comparative market analysis (appraisal supplied and funded by third party finance company).
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Access to a building & pest report with the option of obtaining their own independent report.
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Scheduled viewing times.
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The knowledge that they are dealing with a serious and committed seller.
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An efficient buying process.
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An open and transparent bidding process. No hidden offers or fake buyers.
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The reduced risk of being gazumped by other buyers or agents.
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It’s easy, it’s clean and it’s quick.
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As a Qualified buyer ready to go, they are not competing with ‘maybe’ buyers who get in the way of serious buyers who are ready, willing and able to buy NOW.
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As some buyers will refuse to buy under auction conditions, the buyer that does participate has an immediate advantage (at the end of the day, we only need one genuine buyer!).
DIRECT TO THE PUBLIC
We will promote and market our services directly to the public.
We will educate prospective sellers and homeowners, ensuring they are aware of our services and asking their prospective agents about this ‘alternative’ selling and marketing ‘option’…
If their agent cannot offer these solutions, we have accredited professionals (agents) that can!
AUCTIONEERS AND BUSINESS DEVELOPMENT MANAGER (BDM’S)
As we build an army of Auction Accredited Agents, who will learn to love and advocate
the auction process, the need for qualified Auctioneers to conduct the live on-site
auction will grow and intensify.
Auctioneering is a specialized and skilled vocation. It takes knowledge, skills and
practice to become a proficient and capable Auctioneer.
As the leading experts in our field, we will train our Auctioneers to the highest possible
standard.
An intense two-week programme will position these Auctioneers to embark on their new
vocation.
Whilst not conducting live auctions, they will be working to foster relationships within
the industry, provide training, attending Broker meetings and assisting agents with listing
presentations.
On ‘The Sellers Reserve Auction Platform’ we will host an approved panel of our
accredited Auctioneers, available for auto-booking or selection by listing agents or
sellers themselves.
THE SUCCESS ACADEMY
As part of the agent subscription to The Sellers Reserve Auction and Marketing Platform, agents will have full access to The Success Academy.
The Success Academy is a training and coaching college, designed to educate and inspire agents towards unprecedented success within their careers.
The Success Academy will become one of America's preeminent Training Organization.
The Sellers Reserve will be acclaimed for providing and subsidizing quality training and education.
The Academy will foster a culture of gratitude, participation and inclusion.
On a per county or regional basis, the target number of participating agents (physically) going through the Academy on a weekly basis will be 200-300 individuals, together with a live streaming service and robust online presence.
In addition to the Auction Agent Accreditation Program, courses will include a mix of short (2 hours to day) and long courses (2 hours per week over a 38 week period) depending on the topic. Together with customized courses designed to cater to the needs of certain Brokerages and Affiliates.
Each of the modules delivered, will provide the agents with a new way of thinking and advanced real estate listing, selling and marketing methodologies.
Every agent that attends will finish each course a stronger and smarter agent
An example of modules/sessions on offer would be:
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Cutting Edge Real Estate Practice – Take Real Estate Representation to New Heights
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Success is an Evolution – The Perpetual Success Cycle
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Win Every Time – The Perfect Listing Presentation
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Modern Marketing and Media – If you want an Outstanding result, you must Stand out!
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Negotiate your way to the Top – Learn the art and science of True Negotiation
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Lead from the Front – Take Charge of your Business Immediately
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Million-Dollar Agent – Make This Year your Best Year Ever
Some Of Our Auction Success
Download Case Stories
In our Case Stories Brochure we have listed a number of properties we inherited from failed campaigns. Most of these clients were at first doubtful and sceptical of real estate agents. However, they also recognised our distinctive approach and in turn trusted us to provide much-needed solutions.
