My great-grandfather and his older brother were auctioneers or “market makers” for land and cattle. As the founders of our firm’s legacy over one hundred years ago John Bradshaw, who was my great-grandfather’s brother, had become nationally renowned by 1910 as a go to marketer for real estate and land, often auctioning over thirty farms per month across all of the U.S.
When his niece Elnora married another prominent auctioneer, W.B. Williams, their son and my future father, Tommy Williams, got a “double dose” as they say. Auction was now profoundly encoded into our family’s legacy as the best way to exchange and discover real value for real property.
Growing up on our family’s cattle farm, I saw my father and his partner personally conduct thousands of auctions across all of the Midwest. I learned firsthand that the more interesting, unique or valuable a property seemed, the more it deserved and needed the attention of auction. Whether it was a seller’s desire for best net value, a buyer’s desire for fairest real value, or often the legacy of a particular property itself – the things that mattered most all seemed to warrant that a timely, competitive live and in person auction was how best to preserve, honor and exchange created value.
I learned over time that this use of auction was not limited to the estates, farms and ranches of my upbringing. Internationally renowned art auction houses, collector and used automobile auction markets, and almost all thoroughbred horse and purebred livestock industries use rousing live and in person auctions for the same reasons.
But I also became aware real estate auction was sometimes associated with the exchange of property through a court administered or foreclosure sale where it could be “taken” or “given” away. Suffice it to say that just because art, automobiles, animals, stocks and bonds are sold at auction doesn’t mean value is being taken or given away.
The discovery of this disconnect for the most meaningful or “real” property there is – real estate – is what inspired me to dedicate my career to helping people utilize the value of auction. And in addition to our own homes, this land – the terra firma that provides our farms, ranches, rural estates and open spaces – is to me, the most wonderful, beautiful, unique and valuable resource we have to honor and steward; more so even than a one of a kind painting, rare car or fine animal.
In summary, I believe it’s our land and the improvements we’ve built on it that most deserves and benefits from all the attention auction has to offer. To not auction such a legacy when a voluntary exchange is needed or desired, could ultimately mean to neglect its real value. That’s why I stand for auction.
Newmark Cornish & Carey Wine Services and Williams & Williams to Auction Chatom Vineyards and Winery
Santa Rosa, Calif. (May, 2015) —Newmark Cornish & Carey Wine Services and auction leader Williams & Williams Worldwide Real Estate Auction will commence the auction of its first property together on Friday, June 26th at 2:00 P.M. Pacific Time with the auction of award-winning Chatom Winery and Vineyards. The approximately 775-acre property will be offered in two parcels at auction with equipment and bottled estate wine inventory included for beginning immediate operations. Parcel One includes the fully operational Winery with current production averaging approximately 12,000 cases annually (permitted to 25,000 cases) and Parcel Two is comprised of the approximately 744-acre ranch with a 64-acre vineyard and residence.
View entire article here.
Joint Venture Team Auctions Wine Assets
By Lisa Brown | San Francisco
SANTA ROSA, CA—Newmark Cornish & Carey Wine Services and Williams & Williams are now part of a joint initiative to sell Northern California wineries, vineyards and related properties via auction. This process offers clients access to an expanded buying pool and quicker closings. The collaboration aims to capture the growing market for wine-related properties which attracts professional businesses to hobby vintners. From list to close, deals typically take 75 to 90 days, far faster than traditional sales transactions. Real estate auction company, Williams & Williams, through its sister company, the Auction Network, is the only major auctioneer to conduct live auctions simultaneously at properties and online. Remote bidders compete with those at the physical site, providing the full transparency of a live auction, while expanding the buyer base and resulting in bids significantly higher than online-only auctions.
As part of this announcement, GlobeSt.com chatted with Fontana Fitzwilson, Executive Vice President of Williams & Williams, and Kevin Foster, Senior Associate of Newmark Cornish & Carey, about the origin of the joint venture and the benefits of the service.
Fitzwilson tells GlobeSt.com: “We initially contacted Newmark Cornish & Carey about a property for sale to create urgency, competition, market value and liquidity that auctions generate. This led to the broader partnership of two big brands working closely as a team.”
GlobeSt.com: What are some of the business and sale issues wine property owners face?
Foster: Elements outside of human control greatly impact the business of growing grapes and cultivating wine. Sun, water and temperature are factors the winery owner must negotiate every day. A time-definite sale mitigates the risk of crop valuation shifting during the time of marketing to a traditional buyer. Also, timing a sale prior to harvesting the year’s vintage can be an advantage.
GlobeSt.com: Why are wine property clients in particular need of the benefits of an auction?
Foster: Health, financial, partnership or estate issues can influence the urgency of a sale. Auction is of great benefit for sellers who require a time-definite real estate transaction in order to move on with their lives, to stop carrying costs for an asset they no longer want to own, to liquefy and pave the way for another real estate opportunity or simply due to life changes. An aggressive global marketing campaign can reach a large audience. And, auctions can be a very important tool in a broker’s tool chest for unique assets that are harder to sell in the traditional process.
GlobeSt.com: Explain the pairing of Williams & Williams and Newmark Cornish & Carey.
Foster: Residential brokerage firms have traditionally handled the sale of small to mid-sized wineries, vineyards and boutique wineries. However, the leasing and sale of income-producing properties is the core of commercial real estate. Newmark Cornish & Carey is among a few commercial real estate firms in the nation with a specialization in the sale of wine-related properties and the only company that has implemented an auction initiative with the resources to handle these complex transactions.
GlobeSt.com: How does the process work on the actual auction day?
Fitzwilson: On the day of the auction, the as-is properties are open to inspection. The auction itself is typical of most auctions: It goes very quickly once the bidding process starts. The 10% down payment required on auction day is nonrefundable.
About Lisa Brown
Lisa Brown is an editor/reporter for the San Francisco Bay Area region of GlobeSt.com. She has 25-plus years of Bay Area/national real estate experience, with a regional role at Grubb & Ellis and a national communications director position at Marcus & Millichap. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
“For sale” signs up for months. Or years.
“Asking prices” too high. Or low.
“No one” seems that motivated. Or will act.
The New York Times “Modern Love” column recently celebrated ten years and its editor noted he’d seen people wrestling with two questions above all others over that time. From the young, “How do I find love?” And from those wallowing through marital malaise, “How do I get it back?” He went on to note “it’s not really love they want back as much as attention, excitement and passion.”
I believe this observation cuts to the heart of global real estate markets too. For all the supposed cures to real estate market blues, there still seems a general malaise in place. From the building of empty cities (China) to the printing of currencies (everyone?!) people seem to sense there’s an unsustainable blight or “wasting” of resources and degrading of values. And the increasing uncertainty and opacity – from what governments will do next to what public market stock values are really based upon – seems set up to doom us from one bubble to another.
Bottom line, whether you are Greek or Chinese, French or American – real estate markets especially seem to be getting ever murkier as to what is really for sale, when or how it actually will be exchanged, or what in the world it might actually be worth.
We, as well as the thousands of real estate agent partners we work with around the U.S., have long known that for every “good” real estate story told at dinner parties, there are dozens of traditional sale efforts that didn’t quite work out as planned. The asking prices used ended up being too high, or too low. The negotiations entered into seemed endless or gamey. The attempted sale of the property privately or via new-fangled online marketing attempts, failed time and again to close. Or they simply received no offers for months or maybe even years on end. And reputations, especially that of the property, become tattered.
Our company gets calls from all types of property sellers and their agents every day. Many have used us before, especially for farms, ranches and luxury estates – and so plan on going direct to the public markets through our onsite and interactive auctions. They’re typically concerned about wasting any time or money on speculative market guessing or “online only” attempts at marketing.
But we also get calls from sellers who have never thought about live auctions before, and their stories are troubling. Beyond all the headlines about foreclosures and short sales these last several years, most sellers do in fact have very real equity in their properties. But trying to unlock that value so they can move, reinvest or simply get on with their life seems to be a path to quiet desperation for more and more people.
Below is the marketing history for a typical new client who calls us for help. I wish I could say this is an extreme example but many sellers who call us have in fact tried for far longer – and at far greater financial loss and emotional strain – to get their own property sold.
Was the property above overpriced two years ago at nearly $1.5 million? Or is it underpriced today at just below $900,000? Has the over two years on market cost the seller anything or hurt the property’s reputation in any way? And rather than speculate, what was or could have been the property’s real net present value two years ago, or even just last year?
From my own experience, but for having gone direct to public market auction in the beginning, a lot of loss in dollars and cents – not to mention immeasurable costs to hopes, dreams and other needs – could have been saved.
Since the latest real estate bubble burst, things seem different. More and more sellers appear to be like deer in headlights while more and more properties also lie underutilized, vacant or simply abandoned. And more and more potential buyers also seem frustrated, confused or simply angry with the status quo.
Thankfully, buyers at our own auctions remain excited that they’re openly invited with time and term certainness to watch, bid and win; as they get to exchange and determine value more transparently whether in person or online.
This makes sense to me. Without a date, how – much less when – will we pay enough attention to a property’s sale? And the one thing we hear most consistently from everyone who attends our auctions is how exciting they are – not something you hear about real estate generally. And for the highest bidders – the ones who zero in and sense this is the deal for them – it’s fair to say passion is even involved.
If we are to move through any malaise in real estate, not to mention our economy, I think we’ll need and want more, not less, onsite and public auctions. At minimum, there still seems to be enough respect for property that the inherent value of onsite public market auctions creates a “market” for real estate that works. That’s the good news for all of us concerned with moving forward, making a difference or simply – selling and buying real estate.
The Long & Foster Companies, the parent company of Long & Foster Real Estate—the No. 1 independent residential real estate company in the country, has partnered with Williams & Williams Worldwide Real Estate Auction. The strategic alliance presents Long & Foster clients with the option of selling their homes via live and online auctions—a growing avenue for properties of all price ranges, including high-end and luxury homes.
Williams & Williams is one of the most respected brands in real estate auction with over 100 years of experience. Its auctioneers specialize in all types of real estate, including residential, commercial, land and real-estate owned (REO) properties, and have sold more than $7.5 billion worth of real estate over the past five years. The company credits its success to the customized global marketing strategies it employs to drive interest and competition for properties sold through its live on-site auctions and Auction Network online auctions.
“We are excited to be working with Williams & Williams and their team of experienced real estate auctioneers,” said Pandra Richie, president of Long & Foster’s Corporate Real Estate Services. “Their proven performance and history of achievement were key in our decision to partner with Williams & Williams, and we look forward to a long and successful relationship as we grow and move into the future.”
Going forward, clients who list their properties with Long & Foster will have the option of auctioning their homes in partnership with Williams & Williams. During the home sale, clients will work hand-in-hand with both their Long & Foster Realtor and representatives from Williams & Williams, who will provide added support in both marketing and advertising properties.
“At Long & Foster, our real estate agents are dedicated to helping their buyers and sellers through a successful real estate transaction, and the addition of Williams & Williams auction services provides our team with one more way to support our clients and help them achieve their real estate goals,” said Larry “Boomer” Foster and Gary Scott, presidents of Long & Foster Real Estate. “We’re confident that with our team’s real estate expertise and the additional backing of Williams & Williams, we’ll be even better positioned to serve home buyers and sellers throughout the Mid-Atlantic and Northeast.”
Fontana Fitzwilson, EVP of sales at Williams & Williams, echoed their enthusiasm for the partnership. “Our team at Williams & Williams is excited to work with Long & Foster and its real estate professionals. Not only are they known for their exceptional real estate services and support, but also their open and innovative approach to marketing and advertising properties makes them a perfect fit for our auction services,” said Fitzwilson.