Sold! What You Should Expect When Selling at Auction

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Whether it is your home, car, or other personal property, selling what you have at auction is a quick and easy way to trade in what you are selling for cash. Even though an auction is a logical choice for some sellers, if you have little or no experience with the auction process, the whole idea can seem a bit intimidating. Getting to know some of the benefits and basic facts will greatly help you gain a better understanding and determine if auctioning your property is the right choice for you.

The Benefits of Selling at Auction

Auctions make it easy to see a quick turnover on your property and do not really take a great deal of effort on your part as a seller, which makes selling in this style ideal for a lot of people. A few of the other more noteworthy benefits and advantages of selling something at auction include:

  • Auctions are the ONLY way to make more than retail price for items.
  • Auctions often hold the advantage of selling property or items without so much pre-assessed value in the mind's of the bidders. Therefore, something can easily sell for far more than its actual value.
  • Every bidder at an auction is already prepared to pay for what you have for sale. In the case of some auctions, such as land and home auctions, bidders often have to be prequalified for financing before they are even allowed to bid. This means you get to avoid having to deal with buyers who may not be able to get financing or have enough funds for purchase.
  • You know exactly when your property will be sold, which is never the case when selling property in a traditional way. For example, if you list a home on the market, it may be months, or even years before a buyer shows true interest. On the other hand, when you schedule an auction, you can almost guarantee that your property will sell the same day.

Hiring an Auctioneer

Your first step to take when you want to auction something you own is to hire an auctioneer. This is easily the single most important step of the process because the auctioneer you choose will have a major effect on the outcome when everything is said and done. A few qualities that you should be looking for in an auctioneer include:

  • Experience - Finding an experienced auctioneer is vital. You want someone who is highly capable and comfortable with public negotiation and this kind of personality usually comes with experience.
  • Personable - A personable auctioneer is bound to get the crowd amped up at the auction. The more outgoing and personable the auctioneer is, the more engaging they will be with a crowd of bidders on auction day.
  • Affordable - Auctioneers usually get paid by a percentage of the sale. This percentage can range depending on how much the items being sold are worth in order to make it worth the time and effort for the auctioneers' professional services. However, some auctioneers have other fees involved for their services. Make sure you get a clear outline of what a specific auctioneer will charge before committing to their services.                                                                                                                                                                                                                                                                                                                                                                                                           

When you don't have a lot of available resources, finding a good auctioneer can seem like a trying feat. Make sure you take some time to check out to easily seek out some of the best auctioneers in your area.

Before the Auction Takes Place

Before the auction day, it will be your task to get your property ready to go. The idea is to make what you have available as enticing and attractive to bidders as possible. If it is a house you are selling at auction, it should be in top-notch shape in order to fetch the best price. Clean everything spotless and mend any obvious damages that may deter people from bidding. If you are planning to auction a vehicle, the same rule set applies. The car should be clean, detailed, and mechanically sound. Regardless of what it is you are trying to sell, the preparation process should involve you stepping in the shoes of a potential buyer and looking at your property through their eyes to make it as desirable as possible.

The Day of the Auction

When the auction day finally arrives, you will no doubt be excited and maybe even a bit nervous to see your property go up for sale. In most cases, bidders will be given a chance to take a look at your property before the auction actually begins. You may even receive pre-auction offers on your property. Whether you choose to accept these offers should be discussed with the auctioneer first and will likely be covered several days in advance. The starting price for your property will either be at an aforementioned baseline that you have agreed to or a specific vendor rate. Once bidding has begun, you get to enjoy the excitement of seeing the crowd tussle to get what you have available.

A Few Tips to Keep in Mind About the Auction Process

  1. When the auction is over, you may only be paid a percentage of the sale price with the final amount due from the highest bidder at a predetermined settlement date.
  2. Once the auction has concluded, this should be considered a final sale with no cooling off period unless otherwise determined by you and the auctioneer beforehand.
  3. Until the legal transfer of the property takes place, you may be responsible for the upkeep.
  4. The auctioneer will be your go-to person throughout the auction planning process. This professional will serve as the adviser, planner, and coordinator of the auction event.

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