Insights and Industry Advice from Robert Anderson

#1 – How did you get into Auction Services, and how have you seen it evolve over the years?

Entering the auction side of the business happened to me by mere chance. In 2011, I was looking to re-enter the finance side of real estate, and while back in New York for interviews, I ran into a friend who was working with a site called auction.com. I decided to explore further because I’ve always been of the mindset that “everything is worth a conversation.” I was highly impressed with their business model and the talent already assembled at auction.com. Plus, the opportunity to work with a close friend was appealing. I started at auction.com in February 2012 and have been in auction services ever since.

In the early stages, the focus was on highlighting the benefits of CRE auctions and bringing them online. It wasn’t easy, as we had to start by educating people about the advantages of selling online in general. However, the perception of online sales has shifted over the years, and now it’s common knowledge that if you don’t have your listings on platforms like Crexi and LoopNet, you’re at a disadvantage. These platforms have evolved to become a specific tool for transactional success. Since first entering the industry, the utilization and perception of auctions have definitely shifted and will continue to become more mainstream as owners leverage the auction service strategy, especially for specific assets that have found previous success.

#2 – What skills have you learned that have helped get you to where you are now?

The ability to understand how to best utilize auctions and provide execution advice has been crucial. Having been on both sides of the process, I’ve gained invaluable insight into various auction varieties and the properties for which this sales strategy works best. The key is to fully understand client goals and actively listen to market needs and market feedback, despite whether it is positive or negative. Utilizing market information in your favor is imperative, in addition to asking the right questions to understand why things work the way they do. These skills have served me well in this field. You need to be able to provide yourself and your clients with a clear picture to ensure they can make the right decision on auction day.

#3 – Can you provide some examples of successful auctions that you have been involved in and what made them successful?

I’ve participated in auctions where we witnessed some incredible bidding activity and others where the market couldn’t meet the sellers’ expectations. One standout example is when I was with Crexi and facilitated the largest online sale ever. The property sold for $205 million, and the client’s initial goal was $155 million. On the other end of the spectrum was a smaller auction by Matthews™ Auction Services for a vacant Hardee’s property, which successfully sold for half a million dollars. We were able to help a client that was trying to get out of an asset, and we exceeded their expectations. Ultimately, going to auction is a tool that can be used to accomplish the end goal of a successful sale, often with limited downtime.

#4 – How do you advise agents/sellers to determine the appropriate starting price for a property at auction, and what factors influence the final sale price?

Each auction platform has its own strategy, and I work closely with them to provide the client with suggestions. Understanding the client’s reserve and motivation, in combination with market due diligence, is crucial in determining the starting price. When I was on the other side and was going in making the starting bids, I would ask a combination of questions. One, “Where is the broker’s valuation?” two, “What price is the client looking to ultimately achieve?” and lastly, I always asked myself, “If I was buying this, what would I want to pay?” Discounting the median price and taking into account bidder activity and demand are other key factors. You can’t sell something that no one wants, but you can exceed expectations if it is something that everyone wants. Extensive due diligence and ensuring active and engaged brokers will increase the bidder’s participation and significantly influence the final sale price.

#5 – What advice would you give to potential buyers and sellers who are considering using auction services for their CRE transactions?

I advise potential buyers to always “Get in and bid your number.” It’s important to understand that an auction is a negotiation, and every bid is being considered by the seller. If you’re not bidding, you won’t be able to take advantage of the opportunities that auctions present. Being prepared, realistic, and engaged throughout the process is essential for sellers. Treat auctions as a tool that can potentially exceed pricing expectations, but also approach them with eyes wide open. I recommend walking sellers through the process, setting expectations, providing updates, and utilizing technology to showcase the backend. Ensuring client engagement and leveraging technology are key aspects.

#6 – What event or experience had a significant impact on your career? What challenges or setbacks have been essential for your personal and professional growth?

The Great Financial Crisis had a significant impact on my career. I graduated college thinking I was going into commercial real estate finance, and after one year in the industry, the credit markets came to a complete halt. At that time, I was in my mid-20s, and due to the shift in the industry, I ended up moving across the country to a city where I had no family or friends and began raising real estate capital in $4,000 increments. Being forced to step completely out of my comfort zone was exactly what I needed. From that experience, I gleaned invaluable sales experience and significantly developed and matured both personally and professionally.

#7 – Can you discuss any challenges or obstacles you have faced in the Auction Space role and how you have overcome them?

In the beginning, the major challenge was getting everyone online. After COVID-19, many more people became open to the idea of online auctions. However, sticking to the plan and not giving up during challenging times have been crucial. At Crexi, for example, we had to start from scratch, but we were aware of the holes that needed filling; mainly creating an auction platform supported and run by real professionals that understand deal nuances. But before we could leverage Crexi’s robust marketplace, we had to first deconstruct the technology and marketing to understand the strengths to use for our auction business. There were a lot of learning experiences, and rather than building our own technology, we focused on building our own processes and approaches to sales that require auction distribution.

#8 – What role does technology play in modern CRE auctions, and what advancements have you witnessed in recent years?

The role of technology has been huge in modern CRE auctions. It has allowed auction services to expand their buyer pool by going online and increasing the distribution, ultimately creating more competitive bidding. Over the next 12 to 18 months,  I anticipate seeing more improvements in user experience on the backend and front-end technology, as well as more growth in the space. I believe that the transaction volume in auctions will increase significantly over the coming years as more investors become open to the strategy. Continuous technological improvements have made auctions more accessible, efficient, and transparent.

#9 – How do you stay updated on the latest trends, regulations, and best practices in the auction services field?

The auction services field is continuously growing, and staying updated is crucial. Initially, there were only a handful of individuals, but now it has become a handful of firms. I actively stay in touch with old colleagues and keep my network alive and well. Although cumbersome, continuously monitoring active auctions on each platform provides me the opportunity to aggregate real-time results and develop my own conclusions and trends, as opposed to looking backward for trends. Since each platform operates differently, having deals on all platforms allows me to stay current and helps me constantly learn and adapt. Utilizing all available platforms serves as a backdoor for staying updated. In my seat, I can see it all from a global level.

#10 – How do you plan to grow the Auction Services Line at Matthews™?

My goal is for Matthews™ to have the top-producing and most reputable Auction Service line in the country. When clients use Matthews™ Auction Services, they can trust that they’re working with the best! By showcasing our expertise through our proven track record of delivering results and by offering a full-service platform, we aim to establish Matthews™ as the best-in-class brokerage, both in and out of the auction brokerage arena. My purpose is to help Matthews™ brokers (nationwide) leverage our in-house auction service line as a tool to win new business and as an alternative strategy for thinking outside the box to attract more buyers and increase the probability of sale. Additionally, we’ll focus on the growth and education of our individual agents, positioning ourselves as a reliable resource for the space and ensuring that our clients can make the most well-informed decisions.