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