Converting Auctions into CASH!

Converting Auctions into CASH!

Auction Facts

Taylor Auction & Realty, Inc. conducts auctions for both real estate and tangible property. Although merchandise may be different, most auctions are conducted in the same manner.

DO YOUR HOMEWORK before you BID

Before you attend an auction, obtain the auction brochure. This information is available upon request or on our website. Review it closely so you will understand the terms of the auction. Be sure to carefully inspect the property before the auction. Unless stated otherwise, all property sold at auction, real estate or personal property is sold "AS IS, WHERE IS".

AS IS

Selling the property without warranties as to the condition and/or the fitness of the property for a particular use. Buyers are solely responsible for examining and judging the property for their own protections. Otherwise known as "AS IS, WHERE IS"

In the case of a real estate auction, the brochure will generally inform you about how much earnest money you will need at the time of the auction and any other pertinent information about the auction.

Terms for merchandise auctions usually specify payment in full at the time of sale. Additionally, you are always responsible for the removal and safety of your merchandise once the hammer falls and you are the designated high bidder.

TERMS TO KNOW IN REGARD TO AUCTIONS

AUCTION LISTING AGREEMENT:

A contract executed by the auctioneer and the seller which authorizes the auctioneer to conduct the auction and sets out the terms of the agreement and the rights and responsibilities of each party.

ABSOLUTE vs. RESERVE

If you see an auction advertised as ’absolute’, it means that there is no minimum bid. An auction where the property is sold to the highest bidder with no limiting conditions or amount.

If an auction is with ’reserve’ or �seller confirmation�, this simply means the seller reserves the right to accept or reject any bid. A minimum acceptable price may or may not be disclosed and the seller reserves the right to accept or decline any bid within a specified time.

BUYER PREMIUM

A percentage added on to the high bid. Buyer premiums are used by many auction firms as a way of spreading the cost of the event with the people who benefit most from the opportunity to purchase; the buyer. It is an amount added to the high bid in addition to the high bid and payable by the buyer.

BIDDING

Almost always, bidding will be faster at a live auction and also during an online auction. In a live auction setting if you wish to bid, quickly raise your hand and establish eye contact with the auctioneer or one of his assistants (ring men) who will relay your bid to him. In an online situation, make sure you are online before the auction ends and observe the closing time and extended bidding terms. Do not hesitate to bid. If you do, you may miss an opportunity. Once the auctioneer says ’SOLD’, it is too late.

ABSENTEE BID

A procedure which allows a bidder to participate in the bidding process without being physically present. Generally, a bidder submits an offer on an item prior to the auction. Absentee bids are usually handled under an established set of guidelines by the auctioneer or their representative. The particular rules and procedures of absentee bids are unique to each auction company.

YOUR CHOICE OR BIDDER CHOICE

The auctioneer may sell a group of items by �choice’. This means you bid a price you would like to pay for a single item and if you are the high bidder, you may choose which specific item(s) within the group and the quantity you want (from one to the entire group or lot). Your cost will be the individual price you bid multiplied by the quantity you select.

BIDDING FOR OTHERS

Bidding for others is perfectly acceptable and quite common. However, you must have full authority to do so from the party you are representing. In addition, the principal you are representing is obligated to fulfill those obligations you create on his or her behalf. If they do not, you will be the responsible party in the transaction.

INCREMENTS OF BIDDING

The auctioneer determines the increments of bidding. On occasion, he will ask someone to ’open’ with a bid, or he will indicate that he may entertain ’any’ bid. This means you can offer any amount higher than any previous bid.

BALLROOM AUCTION

An auction of one or more properties conducted in a meeting room facility.

BIDDER PACKAGE or PROPERTY INFORMATION PACKAGE

The package of information and instruction pertaining to the property to be sold at an auction event obtained by prospective bidders at an auction.

MINIMUM BID AUCTION

An auction in which the auctioneer will accept bids at or above a disclosed price. The minimum price is always stated in the brochure and advertisements and is announced at the auction.

OPENING BID

The lowest acceptable amount at which the bidding must commence.

TERMS AND CONDITIONS

"Terms and Conditions" are the printed rules and format of the auction. Terms and conditions outline the type of auction, the commission structure of auction and any other pertinent information. The terms of each auction vary and differ between auction companies.

RINGMAN

The "ringman" is a member of the auction team who works with bidders throughout the auction. A "ringman" is generally recognized as the person in the crowd yelling and flashing hand signals to the auctioneer when a bid has been made. This individual works the auction "ring", hence the name "ringman" .

WITHDRAWAL

Failure to reach the reserve price or insufficient bidding.

BIDDING OPPORTUNITIES

TAYLOR AUCTION & REALTY, INC.offers several convenient ways to bid at a live or online auction. You may submit a sealed bid prior to the auction by contacting the auctioneer or utilize an absentee bid form.

Attendance at the auction, however, is always the preferred method of bidding.

QUESTIONS

We encourage you to ask questions. We are glad you are interested and want you to feel comfortable in participating in an auction.Thank you always for your interest.