One efficient method through which individuals and organizations have liquidated and sold off assets and properties is the use of a professional auctioneer. Using an auctioneer for the sales of your properties can result in highly efficient and profitable sales transactions.
However, this is not a given. For any Asset Sales via an auction to be efficient and profitable, the auctioneer has to be an experienced professional. Using an inexperienced auctioneer will most often result in inefficiency and loss.
We can therefore surmise that anyone who wants to hold an auction must first ensure that they have the right auctioneer. This being the case, we shall take some time to discuss ways to choose the right professional to handle that auction for you.
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What Does an Auctioneer Really Do?
Many think that all the auctioneer does is stand at the podium and call out very quickly, “going one” “going two” ….. gone! Well, they do that too but before all that, they actually manage the entire process.
This process involves marketing and promoting the event, appraising and correctly pricing the items, marketing the items to be sold and ensuring that the items are well prepared for presentation to the bidders.
They also create an environment that promotes competitive bidding so the items can be sold for more and then they ensure that every sale is finalized.
So, the next time you see an auctioneer, you can look at them with some respect for all they do.
How to Choose the Best Auctioneer for Your Asset Sales
To ensure that you get the best auctioneer for your auction, there are a number of things that you should consider. We shall now be looking at some of these consideration factors to make the process easier for you.
Experience and Expertise
We are starting with this point because it’s a critical one. There is experience which is different from expertise, at least in this context. Experience can generally refer to how long the individual has been on the job and how well they’ve done it. This can be an important factor in determining the success of the auction from start to finish.
Expertise, on the other hand, will be looking at the type of auctioneering that they specialize in. By “type” we are referring to the industry or category of items that they specialize in auctioning.
For context and better clarity, an auctioneer can specialize in a specific industry. Below are some examples:
- Arts – Auctioneers that specialize in art auctions will be useful when you have paintings, artwork, jewelry and the like to sell off.
- Livestock – It may interest you to know that this is a specific industry requiring a good understanding of both the animals and their buyers. It’s therefore not going to be smart to get an art auctioneer to handle this type of sale.
- Equipment and Machinery – As the name suggests, the auctioneer here is focused on selling heavy duty equipment and machinery.
- Real Estate – These are the ones you call on when you want to sell a home, building (private or commercial) or land. Banks use them a lot during foreclosures.
- Estate – This is a unique niche that requires the asset sales of estate items. These will often cut across artwork, furniture, electronics, antiques and more.
The examples above should have given you a good idea of what we mean by expertise. So whoever you choose must have both the experience and expertise to handle the type of sale that you want to do.
Reputation
The reputation of the person you choose must precede them. If no one is saying great things about them then you may need to make a different choice. Read reviews to know what folks are saying about then before making a decision.
Licensing and Certification
In many areas, you need to be licensed to act as an auctioneer. Find out the requirements in your area and ensure that whoever you are considering is properly licensed to perform this duty. You should also check for their certification as this can offer another level of assurance.
Professionals who belong to professional bodies are often easier to work with because you can always take issues up with their organizations should there arise a need for intervention.
Marketing, Promotions and Communication Skills
When we were looking at the role an auctioneer plays, we noted that they offer more than what you see on the actual day. Their job begins even before the day.
You should choose an individual or company that understands how to market the event to get more prospective buyers. Of course, you also need the auctioneer to have great communication skills because it will be required to get folks interested in making the purchase.
It always helps to find out what strategies they have in place for ensuring that people do indeed come for the auction. If people don’t come for the auction, it has already failed before it started.
Compliance and Legal Knowledge
There are legal requirements for most things, including auctions. You should therefore ensure that you choose an auctioneer who understands auction laws. They must guide you through the seller obligation and any other legal and compliance requirements.
Fees and Contracts
This is something that you want out in the open from the very beginning. You need to know the charging structure being proposed and agree to it.
There are different ways that an auctioneer can go about charging for their services. Here are some examples:
- Fixed or Flat Fees – This type of fee does not depend on the outcome of the sale. They are paid whatever has been agreed whether or not any sale was made.
- Commissions – This type of payment is based on the final sale price. You can expect a fee of anywhere from 10 to 20%.
- Buyer’s Premium – This is a percentage added to the winning bid and is paid by the buyer.
- Marketing and Promotions – As the name implies, this is an additional charge for marketing and promotional services.
It’s important that you understand whatever fee structure that is proposed and be sure that you are okay with it.
Conclusion
We already know that the success or failure of any auction is determined by the quality of the auctioneer. To help you, we’ve shared a few tips that can help you make the right choice.
Take some time to research, ask questions and compare various options so you can choose the best. This initial task will save you a lot of stress down the road also make you some money.
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