Auctioneer Finds Patience Can Be as Lucrative as Speed

By Joe Clements

AS A VETERAN AUCTIONEER AND AVID SKIER, it might seem that Michael R. Harkins has a penchant for speed, but that doesn't mean the Lowell native is always operating at a breakneck pace.

While he has sold countless real estate assets and other pricey items in a matter of seconds since entering the auction business more than two decades ago, Harkins has found other opportunities can be equally lucrative if one has a measure of patience. Besides extensive energy spent assembling land for development, for example, the president of Harkins Real Estate & Auctioneers has begun acquiring small non-performing loan pools discarded by banks and other lenders who have deemed the notes too difficult to pursue.

Troubled loans often contain multiple ownership positions, title complications or environmental issues with the underlying asset, requiring a dogged attitude to see to completion. And while they may not promise the swift finality of an auctioneer's gavel, Harkins said he enjoys working on such deals.

"It's a puzzle and a challenge," Harkins said in a recent interview at his company's Andover headquarters. "You try to make it work, and if you understand the process, you usually can get through it. "

Harkins said he also finds such notes to be educational, allowing him to confront property issues of every stripe. For the most part, however, Harkins credits his real estate acumen to his father, well-known auctioneer Kenneth P. Harkins, who founded the family business in 1957.

"Everything I learned came from my father, " said Harkins, recalling Kenneth Harkins' understanding of the industry, as well as an infectious personality that made him a popular figure in the area. "He really was Mr. Charisma."

'Working the Crowd'
The younger Harkins began attending auctions as a child and was quickly enamored by the excitement generated by such events. After delaying college following high school, Harkins learned even more working for his father's company until he ultimately attended Plymouth State College in New Hampshire.

Upon returning to the area in 1981, Harkins began conducting auctions locally, the bulk of which were property foreclosures. After the market crash and condominium woes of the early 1990s, foreclosure auctions reached a fever pitch between 1991 and 1994 in the Bay State, Harkins recalled, although they have slipped substantially since that time.

While he has noticed "an uptick" of foreclosures recently, Harkins said that most auctioneers, including himself, have delved into real estate brokerage or development because auctions have been flat for an extended period. The latest economic slide has not produced as many auctions because owners tend to have more equity in their property, Harkins explained, making it less likely that a borrower will default on a loan.

In the meantime, Harkins has kept his auction skills sharp by providing pro bono services for various charity events. Along with events to help raise funds for the ski school his two children attend, Harkins has done several auctions for the Lawrence Boys and Girls Club, where he also serves as a board member. Harkins has helped raise tens of thousands of dollars for the organization, auctioning off such items as vacations, restaurant certificates and donated merchandise.

Besides helping a good cause, Harkins said he enjoys "working the crowd," playing one bidder against another to raise the price. "I have a blast," said Harkins, acknowledging that it does take extensive practice to be come adept at the craft.

"You learn who is a real bidder and who isn't," he said, adding, "It's a skill you have to learn. It's tough to teach, but you can get it after a lot of work."

Harkins is also pursuing development deals, including a project in Lowell where he has assembled 14 parcels and is preparing to develop 28 condominiums. The undertaking took considerable time and effort, including the acquisition of two former railroad oil depots along the tract that also have required Harkins to deal with brownfields issues.

Even as he toils on such ventures, Harkins said he remains committed to the auction business, through which he has sold everything from gas stations and golf courses to shopping centers, industrial properties and multifamily assets. "You name it, we've done it," said Harkins, who last year launched a Web site, harkinsrealestate.com, that helps educate the public about the auction process and provides information about upcoming events. "It's been a great help," he said.