A well-run public auction is a quick, efficient means of converting your valuable property into cash.
The professional auctioneer is first and foremost a marketing specialist. In order to best serve clients, the auctioneer must have a working knowledge of the value of the items being offered. The auctioneer must know how to use advertising to attract the people most interested in your property. That stimulates competition, thus securing the best possible results for the seller. Well-trained auctioneers use established procedures to maximize receipts from the sale of your property.
First, the auctioneer meets with you to see what is to be auctioned and understand your expectations. The merchandise is evaluated and appraised. The auctioneer then presents a proposal that details the auction date, time and location, cost of advertising, sales commission, etc. When the terms of the proposal are agreed upon, a contract is initiated.
Care is taken to ensure that the auction conforms with the Uniform Commercial Code, state and local requirements, title to the property is verified and creditors are notified.
The result? Success on auction day!
Sellers of real estate are embracing the auction method of marketing as never before, and the reason is simple. It gets results!
Today, the competitive bidding process is being used to sell everything from urban residences to farmland, from sprawling industrial plants to apartment complexes.
With the auction, time-consuming private negotiations are eliminated, and the auctioneer’s focused-marketing skills bring the maximum number of qualified buyers. Prior financing arrangements ensure earlier closure of the sale, and money the seller might have had to spend for insurance, taxes and maintenance while the property was “on the market” is freed for more productive purposes.
Choose the date to sell your real estate!
The auction method of marketing has proved an effective price-selling mechanism that takes into account current market variables.
The objectivity and fairness of a well-run auction is often favored by the courts to carry out their decrees and by executors and trustees to help fulfill their responsibilities. The legal presumption is that a public auction of property to the highest bidder is a sale among disinterested third parties.
The auction method delivers potential buyers at a time of your choosing, and its very nature compels those interested in your property to reach a decision. Because you select the date when your property will sell, you also minimize insurance, taxes, maintenance and other expensive carrying costs.
The result is the best and highest available price.
The auctioneer wants the seller to be satisfied with the final bids received.
At an “absolute” auction, each item goes to the highest bidder regardless of the bidding price, but – if the seller requires it – there are alternative methods by which his or her interests can be further protected.
With real estate, for example, the property may be advertised “to sell – subject to owner confirmation.” This means the seller has the right to accept or reject the final bid. The seller may also choose to sell the property “with reserve.” Here an item is identified as being offered with reserve, and the amount of the reserve is clearly stated.
These techniques protect the seller, but they are also fair to bidders because they are fully explained before the auction gets underway.
A well-planned promotional campaign is essential to the success of your auction, and auctioneers know how to make use of advertising to ensure that people interested in your property are in attendance on auction day.
Based upon their training and past experience, auctioneers select the proper mix of newspaper, magazine, direct mail, radio and TV advertising necessary to the success of your auction. Many auctioneers maintain extensive mailing lists, allowing them to target potential buyers for all sorts of property, be it farm machinery or real estate, antiques or computer equipment.
Reaching the right audience heightens competition, thereby securing the best possible results.
How to Choose an Auctioneer
The selection of an auctioneer is the most important factor in ensuring that your auction will be a success.
The auctioneer you choose must be honest, motivated, knowledgeable and flexible. Members of the National Auctioneers Association recognize their responsibility to both sellers and buyers and adhere to a strict Code of Ethics. Their access to the NAA’s wide range of educational seminars keeps them informed concerning the latest innovations in their field and enthusiastic about the results that can be achieved through the Auction Method of Marketing.
So if you are planning an auction, look for the NAA emblem. Behind the emblem you will find a leader in the auction profession.