QUESTIONS ABOUT THE AUCTION PROCESS
Many sellers and owners are unfamiliar with and have never had an auction. Here are some frequently asked questions:
Q. How does an auction work?
A. Marvin will explain the auction process and what you can expect.
Q. What is an Absolute Auction?
A. An auction at which property put up for sale is sold to the highest bidder, where the seller may not withdraw the property from the auction after the auctioneer calls for bids unless no bid is made in a reasonable time, where the seller may not bid himself or through an agent, and where the seller will deliver marketable title.
Q. What is an Auction With Reserve?
A. An auction at which the seller or his agent reserves the right to establish a minimum bid, to accept or reject any and all bids, and to withdraw the property at any time prior to the completion of the sale by the auctioneer.
Q. Do I have to sign a contract?
A. Yes. The Tennessee Auctioneer Statues state an Auction Company/Auctioneer must have a written employment contract to sell personal or real property at auction.
Q. What information does the auction contract contain?
Q. What is a Buyer’s Premium?
- The Auction Company and auctioneer.
- Name of the owner and seller.
- Type of auction: Absolute Auction or Auction with Reserve.
- Description of the real estate and personal property to be sold.
- Date of auction.
- Lien holders and amount of liens.
- Commission due Auction Company and/or auctioneer.
- Details on advertising and promotional expenses.
- How and when the seller is paid.
Q. Can the seller decline to charge a Buyer’s Premium?
- A buyer’s premium can be numerous things.
- A buyer’s premium is used to reach the total selling price of the real property or personal property being sold.
- A buyer’s premium is a way to spread the cost of conducting an auction to the Purchaser.
- A buyer’s premium can be the auction company/auctioneer’s commission.
- A buyer’s premium can be used for promotion.
- A buyer’s premium can all go to the seller.
A. Alexander Auctions lets the seller make the decision if they want to charge a buyer’s premium. Most sellers like a buyer’s premium because it makes them money and cuts down on their expenses.
Q. Do all auction companies and auctioneers charge the same?
A. No. All auction companies do not provide the same services and the same amount of promotion and advertising. Remember
: Compare apples to apples.
Q. What is one of the largest mistakes a Seller can make?
A. Taking advice from someone who is not in the auction business. Auction attendees do not know how to conduct auctions. Prospective buyers do not have your interest at heart.
Remember to use professional auctioneers and professional auction companies.
Every auction is different. If you need to sell and want a realistic market analysis with no surprises,
call Marvin Alexander today at Alexander Auctions & Real Estate Sales (731) 587-4244 or (731) 225-7368.