Executive Conversations is a HousingWire web series that profiles powerful people in the financial industry, highlighting the operations and the people that make this sector tick. In the latest installment, we sit down with Javid Jaberi, executive vice president of single family residential operations at Auction.com, to discuss what it takes to establish a healthy real estate marketplace and what the company has learned in the past decade.
Q: What are buyers and sellers looking for in a real estate marketplace today?
A: Buyers and sellers alike are looking for greater transparency and more information relating to the property and market intelligence. Buyers recognize the value of our marketplace for its unparalleled volume and penetration of distressed real estate, but they also value the access we provide specific to a property’s condition, the neighborhood it’s located in, and, if it’s inhabited, the tenants.
This greater level of intelligence into the property builds trust and confidence within buyers, enabling them to make more informed decisions about what to bid on and how to best leverage the asset should they win.
For sellers, increased transparency means valuable insight into buyer interest on a particular property. A seller’s ultimate goal is to dispose of the asset quickly and efficiently, resulting in the best outcome on investment. Our marketplace generates more qualified buyers to compete in a marketplace that aligns with both seller and buyer objectives.
Q: How do you determine whether a real estate marketplace is healthy or not?
A: As market conditions change, marketplaces should provide an accurate read on pricing and the efficiency of selling. In a healthy marketplace like Auction.com, buyers continue to find the opportunities they seek, sellers receive market prices and qualified bids early and often, and the process of transferring ownership through the marketplace remains effective and risk-free. We see it every day as buyers and sellers interact successfully through our marketplace.
Q: What then are the keys to creating and operating a healthy real estate marketplace?
A: First and foremost, it is created through the expertise of our staff and the rich relationship with our partners in the 3,100 counties we serve nationwide. These relationships help us accurately — and quickly — process assets through from onboarding an asset onto our platform to the successful closing of sale while ensuring all seller and legal requirements are met.
This level of detail requires an in-house team that has developed proven strategic processes and perfected the engagement with buyers and sellers beyond just selling the asset.
The marketplace must also have the capacity to increase demand through a scalable platform, one that provides a wide-array of offerings to meet the wants of potential buyers. Economies of scale are also important as a healthy marketplace is one that supports a large population of both buyers and sellers.
At Auction.com, we work to ensure we earn the trust of our buyers and sellers by providing educational resources to buyers (both new and returning), and sharing the latest industry insights with our sellers in order to help them create the best disposition strategy for their portfolio.
Q: What has Auction.com done differently that has led to the creation of such a marketplace?
A: First, we’ve spent the last 10 years learning what the market needs and how to deliver it. We have more experience in this business than anyone and it shows in the platform we’ve built and the number of users we have attracted.
Beyond that, it requires a culture that fosters continuous improvement. Things change so rapidly in our industry and neither buyers nor sellers have the time or resources to keep up-to-date on all of the constant changes. So they rely on us for that and we have to be up to that challenge. That takes great people and we believe we have the best working for us.
You can train anyone to learn a new skill, but the level of commitment and dedication that our team have simply can’t be taught, and it is taking our company and our clients “Beyond the Bid” to something much more powerful in the industry.