Why sell at Auction? The Auction method of selling is the quickest and least complicated way to turn Real and/or Personal Property into QUICK CASH. Property is sold in “as is” condition, with no warranties and no contingencies. On Real Estate Auctions, clear title is normally guaranteed.
Absolute Auction or Contingency Auction? Absolute Auctions bring out the most bidders and therefore the highest prices. The greatest number of serious bidders attend knowing that the property WILL be sold. Auctions subject to confirmation of the high bid(s) are usually poorly attended. Sometimes they are successful but often they are not.
Will my property bring a good price at Auction? Auction Items usually bring what they are worth if advertised and handled correctly by an experienced Auction Company. Some items bring less than expected, but other items bring more than expected. It generally equals out.
Why the Auction Chant? The Auction Chant compels bidders to bid and gives them little time to get into the bidding process and to consider how high they are bidding.
How to understand and follow the Auctioneer’s Chant: The Auctioneer Chant is composed of figures and filler word. Filler words between numbers, vocalized quickly, gives the Auction Chant rhythm and a unique sound. On most Auctions, (tobacco auctions excepted) the Auctioneer usually calls out the last bid that is received and asks for the next higher amount wanted. (Five Dollars,
wouldya give Ten? Ten, willyoubid Fifteen. Fifteen, wouldyougo Twenty…) When Auction bidding is moving along quickly, Auctioneers use less filler words. When the highest bid is reached, the Auctioneer announces the item is sold. (Drops the Hammer)
Speed of the Chant. This is determined by the Auctioneer according to what is being auctioned.
(1) At a cattle auction or a car auction, bidders are mostly professional or at least skilled bidders and can understand and follow a fast chant. (2) On Personal Property Items, the Auctioneer slows down the Auction Chant so unskilled bidders can follow the bidding and know when and how much to bid. (3) On Real Estate, Auctioneers go much slower due to the large amount of money involved, giving bidders more time to decide to bid.
Auction Preparation: The Auction Preparation is extremely important. A well attended Auction is generally a successful Auction. Much of the work is done behind the scenes before the Auction Date. Real Estate Auctions often need Surveys, approval of Septic Sites, and approval by Governing Authorities in the case of land divisions. Personal Property Auctions are labor intensive and require inspecting, boxing, lotting, tagging, study to ascertain probable value, brochure design,
ad design, contact information for potentially interested parties, etc.
Advertising. The advertising budget varies according to what is being auctioned. Successful Real Estate Auctions require extensive advertising. Adequate advertising is of the utmost importance. No auction can be a successful auction without bidders. Advertising may include Signs, Banners, Printed ads, Radio ads, TV ads, Brochures, Notification from Auctioneer’s mailing list or by email, Brochures handed out or posted in businesses in the Auction area, etc.
Buyer Premiums. Auctioneers sometimes charge a buyer premium in addition to the commission charged to the seller. The extra buyer premium allows the seller to pay less for the cost of the auction. It also gives the auctioneer more funds to pay expenses.
Auction Crew. (1) The Auctioneers (Bid Callers); (2) the Clerk to keep records of items sold and amounts of the high bids; (3) the Cashier to register bidders and collect sale prices and State tax where applicable; (4) and Ring Workers (also called Ground Workers,) who present the items to the crowd and help the Auctioneer spot and take bids. Other Auction helpers are (5) Grunt Workers… to carry sold items to a storage area or to the bidders; (6) Security; and (7) Concessions, to provide food and drink for the bidders. Personal Property Auctions usually require
a crew of eight or more. Real Estate Auctions can require less help. Usually 3 or 4 counting the Auctioneer(s).
Settlement: Personal Property proceeds are usually settled with the seller within 5 to 7 Days after the final day of the Auction. On Real Estate Auctions, buyers generally pay 10% of the sale price at the signing of the contract(s) with the balance due in cash at settlement within 30 days or upon delivery of the deed(s) A reasonable amount of time is normally allowed for the owner to clear up title defects if such are found in the title search. On Real Estate Auctions, it is a good practice to get the title checked and title insurance prior to the sale.