Need an Auctioneer? Here's What You Need to Know
When it comes
time for you to select an auctioneer, it can be challenging. How do you know
who to hire and how do you select one who will do the best job for you?
Let’s get one
thing out of the way if you’re a seller, and that’s this…do not make your
decision based on reviews of an auctioneer from people who attend his or her auctions.
Sound like odd advice? Here’s why it’s not: auction attendees and auction
merchandise sellers are at opposite ends of the extremes when it comes to what
they like at an auction.
Auction
attendees like to get “a deal” or buy something cheaper than what they thought
it might bring. They want a bargain and they go to auctions to get them. They
like auctioneers who sell them merchandise at prices lower than expected by
them. Sellers, on the other hand, want maximum value for their items, which is the
opposite of what attendees want. So, when you read a review of an auctioneer on
his or her website from auction attendees, guess why they like that particular
person or person’s sales? Comments from buyers such as “great staff, he’s
friendly,” etc are insignificant to how to select one who performs for you, the
seller.
Great
auctioneers want great prices too…it makes them more money. But the real pros
realize they are working FOR the seller and WITH the buyers. That’s critical to
understand. It's also important to use a professional auctioneer that has received training form an reputable auction training school and can do more than just talk fast buy be able to manage the whole process..
So, how do you
select a great auctioneer? Here’s my advice:
1. Contact 3-5
firms in your area. Ask them IF they sell the type of merchandise you have. Ask
them HOW do your items sell at auction…high, medium, low prices, hard to
impossible to sell or in high demand? You’ll get different answers from
different auctioneers because most auctioneers have different buying types
attending their sales. Some sell coins, some sell high-end merchandise
exclusively, some sell leftovers out of rental units, etc. Figure out who might
be best aligned with your type of merchandise.
2. Ask those
firms for a client list…a list of people they’ve sold for. Get phone numbers
for those clients and call them. Ask them questions like were you treated
fairly? Did the auctioneer take everything he/she said he would take? Did the
auctioneer provide you with a list of everything he/she inventoried? Did you
get a receipt for every item taken? Did you get fair prices? Did he offer you a
written contract spelling out services provided and fees that would be
withheld? Did he put in that contract when you would receive your funds from
your auction? These are all questions that are not only fair, but in most
states, are requirements to be put into written contracts.
3. Attend a
couple of auctions from the two final candidates. Watch how they handle
merchandise Is it well displayed? Is the auctioneer or ring person describing
what’s on the block for each item? Is there a crowd sufficient enough to put
the merchandise in a competitive bidding situation? Does the auctioneer know
the values of what’s being sold? Are they getting acceptable prices for the
merchandise or is it simply being “given away”? Don’t make too many assumptions
as there are many items in an estate that simply aren’t going to bring much…Tupperware,
glassware, dishes, cookbooks, old tvs and computers…it’s a fairly long list.
But, what we collected in yesteryear isn’t what people collect today.
4. Invite the
auctioneers to come and visit and look at your merchandise. Have them review it.
Don’t expect them to tell you a value. Your merchandise will be put into a
competitive bidding platform on one day at one event. It will bring what it
brings that day based largely on a) the value of your inventory and b) the
ability of the auctioneer to know those values and draw a crowd to the sale.
5. Ask the
auctioneer to provide you a written (yes, written) contract spelling out these
details: what will be taken and what will be left behind, will you receive a
specific inventory list of merchandise taken out of the estate for the sale,
when and where and what time will the sale take place, what are the services
the auction company provides prior to the sale, during the sale day and after
the sale, how will your money be handled, what are ALL the expenses in final
numbers (not hourly rates or “about” x’s; but specifics) because by law
auctioneers can’t exceed more than what they quote you in costs, will those
costs be withheld from the auction or do you owe some of it in advance (if so,
get a receipt), will you get a receipt for each item sold and when you will be
paid.
The financial
terms should lay out costs for merchandise packing and movement to the auction
site, advertising, commission and facility rental at the very least. Ask if
there are any other costs than those.
6. Don’t
necessarily take the lowest bid. Accept the bid that is the most comprehensive
and seemingly the most up-front and honest. If auctioneer A charges 25%
commission and auctioneer B charges 30% commission, that’s only $5 different per
$100 sold. But if auctioneer B gets 10-20% more for the items being sold, it’s
easily made up. It’s not necessarily what you spend; it’s what you make net
that counts.
Final comment:
selecting an auction firm isn’t easy. They are terribly busy these days and
most selling parties don’t allow nearly enough time for auctioneers to respond
and manage their merchandise. But, planning a year ahead isn’t a bad idea.
By
David Aeschliman, CEO, Walnut Creek Auction College