General Auction Info
BRIEF AUCTION HISTORY:
Auctions date back so far in history, that no one really knows for sure how they started or who started them. Records handed down form ancient Greek describes documented auctions occurring as far back as 500BC. At that time, daughters were auctioned off as wives and in fact, it was considered illegal to allow a daughter to be sold outside the auction method.
In the Civil War era, it was common practice for only officers of the Colonel rank to regularly auction off army surplus. This is why auctioneers are often referred to as Colonels.
Over the years auctioning has progressed and changed. Today it remains more popular than ever. Most everything thinkable is sold by the auction method of marketing.
WHY THE AUCTION METHOD SHOULD BE CONSIDERED:
- It is the modern method of marketing
- It is the surest, quickest, most convenient method.
- It is the most efficient
- Auction advertising is more effective
- The owner sets no price ceiling
- The highest price can be secured
- It raises the price little by little
- It may bring more than the asking price
- Judgment of public controls price
- Hospitality and sociability create interest
- It is natural to want what others desire
- It arouses enthusiasms
- It creates the sporting spirit
- It stimulates the competition
- Bidders appreciate using their own judgment
- Bids are influenced by the judgment of others
- Offers are secured easier on spur of moment
- It gives all an equal chance
- It creates an atmosphere of excitement
- It puts the bidders in a positive frame of mind
- It brings buyers to a moment of decision
- It is the most fascinating way to sell
An auction is a sale by competitive bid. The definition of competitive bid sale includes the exchange between an auctioneer (bid caller) and members of his audience with the acceptance of or rejection of the most favorable bid. A competitive bid sale is a sale in which a buyer competes with others for the item to be sold. Inside each of us is the strong desire to win. The acceptance or rejection of highest or most favorable bid shall be conditioned on whether the sale is with reserve or without reserve.
FREQUENTLY ASKED QUESTIONS:
Q. What type of property is best suited for an auction?
A. We auction all types of real estate & personal property– residential properties & furnishings, farms & farm equipment, commercial buildings & inventory, and undeveloped land. From single-family dwellings to business liquidations, auctions have been successful in all of these categories.
Q. Why would I choose to auction my property?
A. Many people are afraid of the old, outdated perception of auctions being the last resort. But the fact is auctions are widely accepted as the first choice for many savvy sellers who understand the benefits of auction marketing. A smart seller chooses the cost effective, accelerated method of an auction to quickly speed up the sale of his or her property.
Q. My property is priced below market right now. What is this going to mean if I sell at auction?
A. We often find that price is not the issue in determining why a property has not sold. Many times the reason that a property has not sold is that there has not been adequate traffic to view the property, and therefore, not enough interest has been generated in order to sell the property. The auction process is the best way to create interest and instill the excitement that will result in a positive sale. Our auctions are positive, enthusiastic events designed to generate competitive bidding to secure the highest possible market price for your property.
Q. Where will the auction of my property take place?
A. We hold most auctions on site. By being on site, bidders are constantly reminded of the positives associated with that particular property, which in turn, can encourage a higher bid. We can also set up our large event tent for undeveloped land sales. If selling on site is not feasible we will arrange for the auction to be held nearby in a public or private meeting facility.
Q. I know my property will bring a better price if some clean up and necessary repairs were performed. I do not have the time to handle this project right now. Can you help me?
A. Absolutely! To realize maximum value your property should be in the best condition possible. We can arrange general premises clean up, yard work, brush hogging, painting and repairs with local contractors. You can literally send us the keys and let us take care of all the details from start to finish.
ABSOLUTE AUCTION – An auction without reserve. An auction in which property is sold to the highest bidder regardless of price. This typically generates a much greater interest among potential buyers resulting in greater attendance at the auction, and a higher final sale price for the property in question.
ABSENTEE BID – A procedure which allows a bidder to participate in the bidding process without being physically present. A bidder who cannot attend submits an offer prior to the auction. All arrangements for payment have been made in advance.
AS-IS – Selling the property without warranties as to the condition and/or the fitness of the property for a particular use. Buyers are solely responsible for examining and judging the property for their own protection. Otherwise known as “As Is, Where Is” and “In its Present Condition”.
AUCTION WITH RESERVE (Also called Auction Subject to Confirmation) – An auction in which the seller or his agent reserves the right to accept or decline any and all bids. A minimum acceptable price may or may not be disclosed and the seller reserves the right to accept or decline any bid within a specified time.
PREVIEW (Also called Special Inspection) – Pre-determined times made available for you to inspect the property offered for sale. You will want to evaluate the overall condition of the property and determine if there are any defects. While these may be acceptable to you, it may affect the amount you want to bid, so look before you bid. You will feel much more confident if you do this.
REGISTRATION – The process you must complete in order to be a qualified bidder. When you first get to the auction, you should ask to register and obtain a bid card. You will be asked to show proper identification to register. You may be required to verify that you have certified funds or cash in your possession. You must register at each auction event. This is essential before bidding.
TERMS & CONDITIONS – The legal terms that govern the rules for a specific auction. Each auction’s terms and conditions may vary and the bidder must understand them before participating in an auction. They include method of payment, possession, reserves and other limiting factors. Usually included in published advertisements or announced by the auctioneer prior to the start of the auction.