A few years into the real estate business, I found myself in a rut. At 20 years old, I’d bought my first piece of property-a little commercial lot on North Shore Drive in Knoxville, Tennessee. I was proud of that deal. I paid $15,000 to Dr. Christenberry, who liked me enough to offer owner financing. My monthly payment was around $182, and I was convinced that I had made a smart investment.
But two years later, the lot still hadn’t sold.
Despite dropping the price from $20,000 to $18,000, and then again to $17,000, nothing moved. I was frustrated, disappointed, and out of ideas. Real estate rich and cash poor, I didn’t want the property anymore, I wanted out. That’s when I was introduced to Oliver Smith.
At the time, Mr. Smith was 75 years old, a seasoned real estate developer who had built some of the first malls in America, including West Town and East Town in Knoxville. Before that, he was one of the South’s most successful real estate auctioneers. I met him in his West Town Mall office, a place that felt more like a museum, complete with a massive desk and a gazelle he’d hunted in Africa mounted behind him. It felt like meeting a king. I told him my story, explaining the property, the failed listings, the discouragement.
He tilted his head and said one sentence that would change everything:
“What you need to do is auction the property.”
Like many people, I initially balked. “I’m not going to give my property away,” I said.
But Mr. Smith didn’t flinch. He calmly replied, “David, if you do exactly what I tell you, follow the recipe, you’ll sell that real estate.” His confidence was unwavering. He handed me a list of tasks: survey the land, clean it up, prep the corners, do a title search, and more. Then he told me we’d sell it at auction in 30 days, and that’s exactly what I did.
I treated it like a political campaign-letters, brochures, ads, personal visits to every person I’d ever shown the property to. I cleaned, landscaped, and pushed hard.
Thirty days flew by, and then came auction day.
At 2pm, people started showing up, many of them the same ones who had passed on the property before. Mr. Smith read the terms, and bidding began. From $15,000, the price quickly soared to $20,000. He paused and asked, “Mr. Alley, are you going to confirm the sale?” I was stunned. That was already more than I’d ever expected. But it didn’t stop there.
The bids climbed: $21,000…$22,000… all the way to $29,100.
And just like that, we were sold. That was the moment I realized the true power of auction. A property I couldn’t sell for $17,000 brought in $29,100 thanks to competition and urgency. That sale didn’t just solve my immediate problem- it launched my career.
That October afternoon taught me more than any textbook or classroom ever could. It taught me that real estate, for all its emotional value, sells best when competition drives the price. From that day forward, I knew exactly what I wanted to do: help others experience that same kind of success.
And that’s how I got into the auction business.
