Auctions are the most unique and valuable way of selling almost any type of real or personal property.
Some of the most popular auctions are those that involve antiques, specialty collections artwork, industrial equipment and even household items . More and more people are buying and selling real estate and land by using the auction method.
There are Benefits to Selling at Auction
So how can auctions benefit you, as a seller? Why are they the best way to sell both real and personal property? Well, there are a number of reasons
- Speedy Process, Quick Turnaround.
- You Set the Time and Place of Your Sale.
It’s as simple as that. You work with the auction firm to schedule what works best for you.
- Scarcity of Land and Real Property
With the scarcity of real estate including land and homes, it is a good time to sell using the auction method.
- You Know Exactly When Your Property or Goods Will Be Sold.
Using the absolute auction method, there’s no wondering whether or not your real or personal property will sell. It WILL sell and it will sell during the set auction time. If you choose to sell real property using a reserve, in today’s market it is still most likely your real property will result in successful auction.
- Comprehensive Marketing of Your Property.
Part of conducting an auction is marketing it to the general public to get as many people to the physical auction site or to the website as possible. Auctioneers are marketing specialists.
- Sellers Prefer the Auction Method.
Auction goers and online bidders are prepared to buy. It’s a seller’s delight. For real estate auctions this is especially advantageous as sellers are anxious to sell without the stipulations that often come with selling in a private treaty format. Most real estate auctions sell “As Is Where Is” and there are no contingencies. This makes it a very attractive option for selling.
- No Negotiations.
There is no haggling over price or merchandise. The auction method is quick and efficient. When people bid, whether live or online, they make a commitment to buy the property at that price without discussion or debate.
- No Leftovers and Little Clean Up.
Every item at an auction goes up for bid and with an auction, there’s no worry about what to do with leftover items because most often there aren’t any.
- Competitive Bidding.
Whether in a live auction format or an online format, auctions motivate buyers to perform. The competitive spirit of bidding creates helps to drive the price of items higher.
- Exciting Atmosphere.
People love auctions. There’s no more exciting atmosphere than an auction. Whether you are conducting a live auction event with crowds of people competing for property, or in an online format where extend bidding is enabled at the last few minutes, it certainly creates an exciting atmosphere. People want to participate.
Hiring an Auction Company
When you make the decision to sell by auction, the most important thing you must do is hire a qualified and experienced auctioneer or auction company to handle your auction.
There are thousands of auctioneers throughout the United States who offer a wide range of auction services to consumers. So what do you look for when hiring an auctioneer or an auction firm?
First, look for someone who specializes in selling the type of property you want to sell. All auctioneers have specialty areas and most have more than one. What do they know about the products or goods you are selling? Also, what format do they use…Live or Online? Both are fine, but make sure you understand the different elements.
Experience is another critical element. How long has the auctioneer or the auction company been in business? Are they licensed? Are they a member of their State Association? What is their reputation? Look at their web site and past sales.
When meeting with the auction company:
- Ask about their contract or written proposal. Get details on what is involved.
- Find out how the sale will be marketed. The success of the sale depends a great deal on the marketing effort behind it.
- Ask about setup and cleanup of the auction.
- Ask for references. And when you get them, check them out!
You work hard for your money, but most of us spend the majority of our waking hours working. Our money pays for our homes, our land, our automobiles, insurance, clothes, food, all of our possessions and so much more. So when it comes to selling those possessions and property, the smartest thing you can do is let an auctioneer help you continue to get the value you deserve.
A professional licensed auctioneer knows worth. A professional auctioneer will manage your sale so you can obtain a good value. You work hard for your money, and we will work hard for your money, too.
Whether you’re interested in attending a live auction event or bidding online, here are some things you need to know.
For Real Estate:
- Make your own financial arrangements prior to auction day
- Read the Terms and Conditions
- Be ready to sign a contract and pay a deposit at the conclusion of the auction
- Be ready to close by the specified time per the contract
- Contact the auction company for any additional questions or concerns
For Personal Property:
- Have your I.D. with you in order to register to bid at a live auction or other information requested if you are registering to bid online
- Read the Terms and Conditions
- Be ready to pay for items at the conclusion of the auction event
- Make arrangements for removal of your auction items and know when the auction pick-up concludes
- Contact the auction company for any additional questions or concerns
- “As Is”
- Absentee Bid
- Appraisal
- Auction Block
- Auction With Reserve
- Auctioneer
- Bid
- Bid Assistant
- Bid Caller
- Bidder Number
- Bidder Package
- Bidder’s Choice
- Bookkeeper or Clerk
- Buyer Premium
- CAI
- Catalog
- Commission
- Estate Sale
- Hammer Price
- National Auctioneers Association
- On-site Auction
- Opening Bid
- Payment Arrangements
- Preview
- Reserve
- Sales Tax Exemption
- Sealed Bid
- Seller
- Tax Sale
- Terms and Conditions
- Tie Bids
- Types of Payment Accepted
Auction History in Tennessee
The concept of buying and selling at auction has been around for thousands of years. It continues to be one of the most effective ways to establish real value for a commodity. In this country, dating back to colonial times, auctions were utilized and included the sale of real estate, crops, imports, furs, clapboard, livestock, tools, tobacco, along with sadly, slaves.
Civil War Era
It was during the Civil War that auctions became a common practice to dispense with the spoils of war and surplus. However, only officers of the Colonel rank could conduct them, spawning the use of the term “Colonel,” a term some still use to refer to auctioneers of today. In the state of Tennessee, once a person becomes a licensed auctioneer, the state legislature bestows upon them the honorary title of “Colonel.”
The 1950s
Auctioneering began to make great strides in Tennessee after World War II. The sale of goods and real estate was booming. There was a need to move real estate and personal property faster than the private market would allow. Thus, the modern-day auction business was born. Many auctioneers were regarded as businessmen, dressing in suits and ties and fostering relationships with banks, attorneys, accountants, the court system and government agencies. Still, many an estate might be auctioned off from the back of an old pick-up truck from a bid-caller dressed in overalls, with hundreds in attendance to watch the show!
Auctions of Today
Like all businesses, technology developed and found its way into the auction profession. The amplified voice allowed for larger crowds to realistically attend a public auction. Auctioneers began using computers, fax machines, cell phones and other technology to make their businesses run faster and more smoothly. Advertising went from the hand-painted wood sign to large, commercially made signs. And with the advent of the internet, it was simply a matter of time before the auction industry would undergo massive and permanent change, allowing buyers and sellers to find each other from nearly any place on the planet. An auctioneer can hold an auction in one location receiving bidders in person at that location. By simulcasting the auction, they can also register bidders online, from all over the world, allowing those participants to bid in real time, along with those in attendance. Some auction firms even utilize online auctions only, thus eliminating the need for the “bid-caller,” the persona most closely related to the word auction.
The Future of Auctions
Despite the momentous changes to the concept of what an auction is, auctions remain as popular today as ever. Entire television shows are built around the auction process. From rare cars to million-of-dollars artwork, the public continues to be fascinated with the auction process and the results it can bring. One of the most well-known websites in the history of the internet started as basically a place to auction off singular items of interest- Ebay. There is now an entire generation of young adults who are quite used to the concept of having to bid on something in order to own it. They understand that real value is most accurately determined when competition for an item yields a competitive result. And the auction method is the oldest way known to man to achieve that outcome.
Auctioneers today work to earn specialty designations such as Graduate Personal Property Appraiser (GPPA), Accredited Auctioneer Real Estate (AARE), Certified Auctioneers Institute (CAI), Certified Estate Specialist (CES) Benefit Auction Specialist (BAS) and many more. The National Auctioneers Association (NAA) provides many of these continuing education opportunities for auctioneers. And it is through the NAA and here in Tennessee, the Tennessee Auctioneer Association, that auctioneers are also bound by a code of ethics that protects consumers against fraud and unfair business practices. The next time you are thinking of selling something, contact an auctioneer and see if they can be of help. And, of course, the most fun you will ever have buying something can only happen one way-at an auction!