MyTxAuction.com

How to Choose the Right Auction Company

You have been given the task of settling an estate or you are moving and do not wish to spend more money moving your furniture than what it is worth.

Perhaps you are downsizing, and need to dispose of a “lifetime accumulation”. So, what are your options? Give it away? That will work for most of it, but what will you do with the rest?

Have a yard or garage sale? You can do that, if you have the time, energy and patience to put up with people trying to devalue what you have and buy “the good stuff” at rock bottom prices leaving you with a big mess of unwanted items.

How about a “tag” sale?

Sure, you can hire somebody to come into your home, price your items for about double what they are really worth. They will sit in your home for several days, allow buyers and other curious people to traipse through your home and each day you watch the prices drop down while the house is trashed. You can pay a large fee or commission for this type of service and then at the end of it wonder what in the world you were thinking to pay somebody to do what you could have done yourself. Oh, did I mention all the stuff that did not sell?

What about an auction?

Have you ever considered hiring a trained professional to organize, prepare, market and liquidate your most prized possessions? Read further to see if this might be the best option you could ever choose!

So, what is different about an auction?

1. Competitive bidding to determine true market value: You can have a garage or tag sale and sell that family heirloom to the first person that hands over the money at a price they like. Then you can spend the rest of the day wondering if it was priced too low. Or you can have multiple bidders competing aggressively at an auction pushing the final price up to a point where everyone learns its true market value and at a price both buyer and seller find satisfactory.

2. Quick and efficient: Most auctions can be conducted in a matter of hours on a day you get to choose! There are usually very few unsold items left and a lot less clean up than you might imagine.

3. Professional Marketing Techniques: Most auctioneers have years of training and experience and are experts in finding your buyers and getting them to the auction. Auctioneers are particularly gifted at getting the crowd to interact and participate enthusiastically in the process of bidding and buying!

4. Should this be work or fun: Auctions are a fast paced intense event, which is a unique blend of business and entertainment. A good auction is not only rewarding for both buyer and seller, but they are exciting and fun to attend and great stress removers! Let your auctioneer go to work for you and deal with all the stress while you sit back and enjoy the “show”!

5. What if the crowd leaves? A good auctioneer is adept at bringing in a crowd of buyers and keeping them there. He will hold their attention and keep their interest and attention level at a high peak throughout the entire auction day. Your auctioneer will keep the process moving quickly and professionally, yet entertain the crowd with humor and a unique sales method, which will please both buyers and sellers. He will make all necessary arrangements for a portable toilet, lunch wagon and other amenities. Try going to a tag sale or garage sale and have this type of convenience! An auction is much more than just another way to sell “stuff”. An auction is an interesting blending of solid business practices, excitement and just plain fun. Auction lovers attend not only to have the chance to pick up a bargain, they go to socialize, have fun and it is a great way to “people watch”!

6. Will the auctioneer guarantee prices for me? If he says he will, ask for a signed check. When you don’t get it, go find yourself an honest auctioneer. Remember, an auction is not a retail operation. While prices cannot be guaranteed, some items will sell for much more than you think and some will sell for less. A well-planned auction will, however, determine true market value. Historically, no other method of sales has been able to duplicate the ease and efficiency of a public auction. A professionally conducted auction provides rewards and satisfaction to both buyer and seller that no other sales method can match. An auctioneer is a special person, a well-trained professional. Make no mistake about it. Nobody can duplicate what an auctioneer can do.

7. What will sell at an auction? Anything that can be legally sold can be sold effectively at an auction. Real Estate, business liquidations, general household, antiques, collectibles, livestock, equipment, intangible assets. The list is endless.

Ok, you have decided to have an auction. What is the next step?

8. Do not throw anything away. Consult with a reputable auctioneer first. Chances are you may not be familiar with what people will buy. A good auctioneer has years of experience and he will know what will sell and what will not. Oftentimes people will weed out what they consider to be junk or not sellable and in the process throwaway literally hundreds of dollars. A good auctioneer usually earns his commission from the sale of items the owner was going to trash. Remember he has been doing this successfully for many years.

9. Does your auctioneer use contracts? If not, find another one. This is important business. Never forget you are talking about converting thousands of dollars of assets into cash! A contract provides clarity and outlines in writing what each person’s responsibilities will be. A well-written contract will avoid unpleasant surprises at the end of the auction.

10. Choose your auctioneer wisely: Is your auctioneer of choice a member of a state auctioneers association or the National Auctioneers Association? You do not have to be a member to be a qualified auctioneer, but auctioneers who are members of these organizations are sending a message that they are professionals and are serious about providing a quality service. In choosing an auctioneer, why not choose the best?

11. How will my property be marketed? To effectively market and sell your assets via the auction method, you need much more than someone who will scribble up a hastily written ad and throw it in a couple of local papers. That used to work, but in today’s world, you need someone who is “marketing smart” and is familiar with the most up-to-date marketing options available. Talk to your auctioneer about the costs. You need to have a “feel” for the expenses you will incur. No one needs to suffer from “sticker shock” after the sale. Ask about Internet advertising. It’s inexpensive and effective. If the auctioneer you talk to does not believe in Internet advertising, find an auction service that believes in keeping pace with the changing technology in the auction world. There is a market of serious buyers who are utilizing the Internet to find auctions that meet their interest. Do you really want to risk losing these buyers?

12. What kind of equipment does my auctioneer have? If he tells you to throw some old doors over top of sawhorses or just to “line” it up in big boxes in the yard, get nervous very fast! A good auctioneer should be able to furnish plenty of clean, sturdy and attractive auction tables. Ask him if he has a large tent or canopy available to protect the nicer items. Inquire as to whether or not he has a professional sound system. He may have an auction facility available for items that cannot be sold on site.

13. What will my auctioneer do for me? This should all be spelled out in your contract. Many auctioneers will expect you to do all the pre-auction prep work, and then they just show up sale day and start auctioning. If this is your preference that is fine. Bear in mind however, it does not cost that much more to hire someone who will take a hands on approach to setting up and preparing for your auction. The auctioneer you might want to select will work with his seller and “custom build” an auction designed to draw serious buyers to insure a rewarding sale and he will do it in a way that fits your needs and that you feel comfortable with.

14. Do I have enough for an auction? Ask the auctioneer and do this before anything is thrown away. Experienced auctioneers can do a quick walk through, ask a few questions and be able to tell you immediately if an auction will meet your needs. They will also tell you what “not” to throw away. You may be surprised by what they tell you.

Remember, they do this to earn a living so if it is not going to work for you, then it will not work for them.

15. What about references? Auctioneers depend on their good name and reputation to earn a living. If they are as good as they say they are, then they should have names, phone numbers, and letters from happy sellers and buyers. Ask for this information. If they are reluctant to provide this or act in an evasive manner, you may want to talk to another auction company.

I have chosen my auctioneer. Now what do I do?

Sit back and relax. If you have asked the right questions, then you have probably picked the right auctioneer. While all auctioneers should welcome your questions and input, it is important to trust their judgment and ability. This is why you hired them. They are experts in their profession and a good one will leave no “stone un-turned” in preparing and conducting the best auction sale possible. When your auction is over, if you are unhappy for any reason, talk to your auctioneer. If you are happy with the results then talk to everyone else! Either way, your auctioneer will thank you and appreciate you!

Today was Preview Day for the Auction.

So...What is a Preview?

Preview, also known as an "exhibition", or more simply, the "viewing". Is an event that the auction house hosts to allow the bidders time for personal inspection of the property up for sale. It is the process that the bidder undertakes to see the items up for auction. Now almost anyone would say that seeing something you are going to spend money on, makes good sense and indeed, in the Auction world, it makes perfect sense.

Auction previews can take many different forms and different types of auctions have different previews.

Pretend you are attending an Auction Gallery Exhibition, (in your evening finery), with a full glossy catalog and champagne refreshments. (Think Christies or Sotheby's) There will be attendants on-site to assist you with viewing the items. There may be the history of the piece (provenance) and the items will be displayed in a museum quality setting with comfortable seating and possibly wait staff services. The catalog will be prepared months in advance and the time to do research on your particular item want will be generous. The auctioneer will advance the auction as the catalog advances and all buyers will know when their item is up for bid.

However, if you are attending a local country auction, (in your jeans and tennis shoes), the same will not be true. Many times the preview is for one to two hours before the auction. The auctioneer does not have a printed catalog, and there is not telling what lot is going up for auction next. You may have to stay for the whole live auction, only to find your wanted item did not come up for bid until near the last!

The preview at this type of auction may require you to crawl around stuff to see what is packed in boxes just beyond your reach. The auctioneer may or may not know what is in the boxes, and you may not either. This is not the time to take a crash course in Vaseline ware (uranium glass), or decide how much the original boxed Star Wars figures are fetching! Which brings me to the next subject in auction previews...

What to Bring to the Auction Preview.

You should a minimum have a pad of paper (to make your own comments about what you are noticing on the item), a writing implement, the catalog if available, a flashlight (To see in dark places and inspect things in a brighter light), a magnifying glass (for looking at marks, signatures, and imperfections), and a bottle of water (because you will get thirsty), and your smart phone, (for research and to call your best friend when you find something awesome!)

Setting Your Maximum Bid

The auction preview is the time for you to inspect the item, research the item, and do a little cost analysis. The question you must ask yourself is, "how much and I willing to pay for this item?". Ask yourself what is your price limit. What is the most I can go on this? This is the time to decide. Not when you are in the "heat of battle" at a live auction and then you go beyond your set price, win, and end up with buyers remorse. There is no returns at auction and once the hammer swings and "SOLD" is announced...it's yours, no matter the price you paid for it.

At Texas State Auction Services, we conduct internet auctions as well as live auctions.

We like internet auctions for these reasons:

1. Have a view-able catalog (on Proxibid)
2. Offer detailed descriptions with multiple photos
3. Offer the buyers a chance for researching
4. Offer the buyers an opportunity to do cost analysis and set maximum prices
5. The auction is in the comfort of your house, or relaxing at your favorite and you can be doing 10 other things while at the auction, and still bid wisely.
6. We offer a physical preview and buyers are encouraged to come to the warehouse to inspect the items up for bid....and that's informed decision making!

So make a visit to an auction preview and bid with confidence that you know how how to make good auction buying decisions!!

Frances Hodgkins, Auctioneer
Texas State Auction Services
www.mytxauction.com
281-280-TSAS (8727)

MyTxAuction.com

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