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Auction Articles
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Auction Articles
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Written by Mike Brandly, Auctioneer, CAI, AARE
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Monday, 22 February 2010 04:46 |
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Steve Johnson of AuctionZip recently noted this question as “one of the greatest mysteries of the auction industry.” Here, we hope to shed some light on this mystery, and possibly get closer to solving it.
How many auctioneers are there?
This is of course a general question with need of clarification to be answered accurately. For instance, do we count:
* Only auctioneers in the United States?
* Only active auctioneers, or all auctioneers, active or not?
* Those auctioneers who are retired?
* Those who only bid call for others?
* Only those who actually contract with sellers for auction services?
* Auction business entities, such as a corporation or LLC?
* Only those who’s primary business is as an auctioneer?
* Only those who make a living as an auctioneer?
First, I think it would be difficult to qualify who is active, versus someone who is not active. Secondly, I think it would be somewhat difficult to determine what it means to be retired. And, I think it would be difficult, at best, to determine only those who’s primary business is auctioneering, or make a living at auctioneering.
For our purposes here, let’s rephrase the question to this:
How many auctioneers are there in the United States, licensed or not, active or inactive, retired or not, whether or not they work for themselves or someone else, including sole proprietoships, partnerships, LLC’s and corporations, whether or not they view auctioneering as their primary business or not, and whether or not they make their living at auctioneering?
Here is our method in attempt to calculate this number.
We can look at AuctionZip and count the number of auctioneers they have listed at any one time. So, we did that on February 12, 2010 and that number was: 17,871.
We also counted the number of auctioneers in the following states and compared those numbers to the AuctionZip numbers, by state: Kentucky, Ohio, North Carolina, Alabama, North Dakota, Georgia, Tennessee and Texas. We chose these 8 states for no other reason than it was fairly straightforward to count via their state’s auctioneer licensing authority websites, and of course all these states license auctioneers. In states without licensing, it is almost impossible to gauge the number of auctioneers.
On February 12, 2010, we counted 15,833 licensed auctioneers (including all business entities) in these 8 states. As noted earlier, on that same day, AuctionZip listed 2,766 auctioneers from those 8 states.
From these two numbers, we concluded that AuctionZip listed 17.5% of all auctioneers in these 8 states (2,766 / 15,833) = 0.1746984.
Since AuctionZip listed on February 12, 2010 a total of 17,871 auctioneers, and that seems to be about 17.5% of all auctioneers (based upon our sample), then we can take (17,871 / 0.175) and we get: 102,120 auctioneers.
Is 102,120 our number? It is not, as our counts for each state in our sample include some auctioneers who are licensed in more than one state. So, our overall count of auctioneers in our sample is high, because it counts some auctioneers twice or more.
A cursory search in some states seem to suggest about 20% of any state’s licensed auctioneers are from out of state, where that auctioneer is licensed (counted) elsewhere. In our sample of 8 states, if we reduced our count of each by this approximate 20%, we would have 12,666 instead of 15,833.
A cursory search of AuctionZip’s site suggest that their total changes very little, as most state listings are made up of about 95% auctioneers from that particular state.
Considering these two new numbers, Our calculation would then become: 2,627 unique auctioneers listed on AuctionZip (2,766 * 95%) / 12,666 unique auctioneers in those 8 states (15,833 * 80%) = 2,627 / 12,666 = about 21%.
If we reduce our total number of auctioneers on AuctionZip by this same 5%, we would then take 16,978 (17,871 * 95%) / 21% = 80,845 auctioneers.
Is 80,845 our number? It is not, as we have reduced the counts for all those auctioneers who are potentially counted twice or more. So, our overall count of auctioneers in our sample is low.
At this point, it seems reasonable that we have, based upon our calculations here (in round numbers) somewhere between 80,000 and 100,000 auctioneers. In other words, there are:
* More than 80,000 auctioneers, but certainly less than 100,000 auctioneers
To fine tune our number a bit better, it does seem reasonable that of this 20,000 or so auctioneers that were counted twice or more to get our 102,120 number, at least half of them are licensed in only two states, rather than one. Therefore, we would have to add back about one half of the one half of the 20,000 (5,000) so they count only once. Then, the other half of the 20,000 are counted in more than two states, so maybe add back another 2,500 or so auctioneers suggesting the average of those counted in more than two states is about 4 states for each (20,000 / 2 = 10,000) and then 10,000 / 4 = 2,500.
That would make our total number of auctioneers (per our previous definition) at:
* Approximately 87,500.
Can this be? 87,500 auctioneers of all types in the United States? It would appear so, but can we check this number in some other fashion?
Let’s take one state, North Carolina, and count the total number of licensed auctioneers, and then look at AuctionZip and count the number listed there. For February 12, 2010:
* Total number of licensees in North Carolina: 2,569
* Total number of licensees in North Carolina living in North Carolina: 2,078
* Total number of North Carolina auctioneers on AuctionZip: 456
* Total number of North Carolina auctioneers on AuctionZip living in North Carolina: 454
This means if we take: 454 / 2,078 = 0.2184793 = approximately 21.8%. Approximately 21.8% of the North Carolina resident auctioneers are listed on AuctionZip.
If we take this 21.8% and apply it to the total number of auctioneers listed on AuctionZip, we have: 17,871 / 0.218 = 81,977.
Let’s take another state, Ohio, and count the total number of licensed auctioneers, and then look at AuctionZip and count the number listed there. For February 12, 2010:
* Total number of licensees in Ohio: 3,316
* Total number of licensees in Ohio living in Ohio: 2,794
* Total number of Ohio auctioneers on AuctionZip: 715
* Total number of Ohio auctioneers on AuctionZip living in Ohio: 713
This means if we take: 713 / 2,794 = 0.2573372 = approximately 25.7%. Approximately 25.7% of the Ohio resident auctioneers are listed on AuctionZip.
If we take this 25.7% and apply it to the total number of auctioneers listed on AuctionZip, we have: 17,871 / 0.257 = 69,445.
Let’s take a third state, Texas, and count the total number of licensed auctioneers, and then look at AuctionZip and count the number listed there. For February 12, 2010:
* Total number of licensees in Texas: 2,174
* Total number of licensees in Texas living in Texas: 1,825
* Total number of Texas auctioneers on AuctionZip: 653
* Total number of Texas auctioneers on AuctionZip living in Texas: 652
This means if we take: 652 / 1,825 = 0.3572603 = approximately 35.7%. Approximately 35.7% of the Texas resident auctioneers are listed on AuctionZip.
If we take this 35.7% and apply it to the total number of auctioneers listed on AuctionZip, we have: 17,871 / 0.357 = 50,022.
Looking at these three states:
* North Carolina’s numbers suggest about 82,000 auctioneers
* Ohio’s numbers suggest about 70,000 auctioneers
* Texas’ numbers suggest about 50,000 auctioneers
These individual state’s numbers are dependent upon how saturated the use of AuctionZip is within their state. For example, we could look at North Dakota:
North Dakota, for February 12, 2010:
* Total number of licensees in North Dakota: 391
* Total number of licensees in North Dakota living in North Dakota: 374
* Total number of North Dakota auctioneers on AuctionZip: 9
* Total number of North Dakota auctioneers on AuctionZip living in North Dakota: 8
This means if we take: 8 / 374 = 0.0213904 = approximately 2.14%. Approximately 2.14% of the North Dakota resident auctioneers are listed on AuctionZip.
If we take this 2.14% and apply it to the total number of auctioneers listed on AuctionZip, we have: 17,871 / 0.0214 = 835,469!
Clearly, AuctionZip usage in North Dakota is low at 2.14% and possibly AuctionZip usage in Texas is high at 35.7%. So, the actual nationwide number is likely between these two numbers.
If the nationwide average AuctionZip usage is 20% in the United States, then we could calculate 17,871 / 0.20 = 89,355.
In summary, for years most of us have been hearing that there are only 25,000 – 30,000 auctioneers in the United States. It it evident there are far more than those estimates? It sure does.
Mike Brandly, Auctioneer, CAI, AARE has been an auctioneer and certified appraiser for over 30 years. His company’s auctions are located at: Mike Brandly, Auctioneer, Keller Williams Auctions and Goodwill Columbus Car Auction. His Facebook page is: www.facebook.com/mbauctioneer. He is Executive Director of The Ohio Auction School.
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Auction Articles
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Written by Mike Brandly, CAI, AARE
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Sunday, 27 December 2009 16:42 |
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Were any of us born auctioneers? Well – maybe close – in that our father or mother was an auctioneer and we were bid-calling at age 2. Or, we had family in the business, and grew up around the auctioneer, clerk and cashier. However, for most of us, it was much later in life that we decided to join this exciting profession.
I can still hear my grandmother telling me that I should, “finish my studies,” before I played in her back yard. Finish my studies? What child wants to do that? For that matter, does anyone want to do that? Am I ever glad I did finish those studies my grandmother was referring to, because I sure didn’t know what I didn’t know.
Want to be a doctor or lawyer? Count on years of college, and thereafter graduate school. What to become a dentist, architect, accountant, teacher, astronaut, nurse … the list goes on; they all require extensive schooling – no matter that your father or mother is currently practicing in the profession that you hope to join. Yet, many people wanting to become auctioneers, even today, question the need to go to auction school. I can hear them saying, “I know all I need to know to be an auctioneer …”
Why else go to auction school? We think there are seven auction school benefits: - Develop good habits, before learning bad habits. Yes, habits are hard to break, and so they are much more beneficial if they are good habits, versus bad habits. “Dad always said to open the bid up if there is a tie bid.” Dad evidently didn’t know that tie bids don’t exist. “My mom always said to say the buyer number, and then the price.” Here again, mom wasn’t teaching standard bid-calling practices used all over the world. Learn the right way and be able to teach your staff and others working with you good habits too.
- Experience many different points of view, and a more complete perspective. Many students come to auction school, or otherwise enter the auction business with only one business plan or model. What auction school can do, and has done for thousands of students over time is expose them to other auction business models, and types of auctions. Come to school thinking only about selling cars at auction, and become the foremost real estate auctioneer? It can happen, and has happened.
- Discover the auction business from people who are passionate about it. Auction school instructors are generally passionate about the auction method of marketing. Auctioneers like to talk, and love the business they are in, and therefore love to talk to students about it. Too, auction school instructors are motivated, in that the more auctioneers out in the business world – doing it right – the more the auction profession benefits and the more business there is for all of us.
- Share your learning experience with others much like you. How was that very first day of school when you were 5 years old? Did it help that there were other 5-year-olds there with you? Of course. The auction school learning experience allows students to learn from instructors, guest speakers, and each other. Sometimes the best person to ask about a topic or technique is a fellow student, who wants you to succeed just like you want him to succeed.
- Expand your knowledge of all aspects of the auction industry. Auction schools cover much more than bid-calling. How do I draft an auction contract? What ethical challenges do auctioneers face? How are liens researched prior to auction? How do I learn to clerk, register buyers and settle auctions? What other business relationships will I need to develop? And, of course, how will I setup my own business and make money at it? Some say the auction itself is only about 10% of the entire job of putting on a successful auction; auction schools teach that 10% — and the other 90% too.
- Find lifetime friendships and possible business partners. Need some help on your first auction? It’s a good chance you can call an auction school classmate and get some help. Some of the best friends and possible business partners result from relationships made at auction school. By spending time in class, and time before and after class, auction school students typically become very close and it’s not unusual that these relationships sustain for years.
- Learn what you didn’t know you didn’t know. Auction school instructors often have decades of experience in the exact field aspiring auctioneers want to practice. Wouldn’t it be likely that instructor experience would save those students from making some of the same mistakes they made in their careers? The cost of attending auction school is probably less than one unhappy client, a few unhappy buyers, certainly less than that first lawsuit alleging your breach of fiduciary duty.
Wouldn’t you advise anyone wanting to become a professional to get the necessary training? Don’t you encourage your children or grandchildren to “finish their studies?” We think that alone is sufficient reason to attend auction school. But, even without that treatise, attending auction school can be one of the best investments you can make in your auction career.
Mike Brandly began his auction career in 1979. He is president of Brandly & Associates, Inc. and is an associate and Auctioneer for Keller Williams Greater Columbus, a large real estate brokerage based in Columbus, Ohio. Mike conducts 100's of auctions a year and his appraisal company completes over 150 appraisals per year for Probate, Civil and Bankruptcy cases. Mike is the Director of The Ohio Auction School.
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Last Updated on Sunday, 27 December 2009 16:53 |
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Auction Articles
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Written by Mike Brandly, CAI, AARE
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Tuesday, 15 September 2009 15:54 |
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Mike Brandly, CAI, AARE selling at an Absolute Auction - Groveport, Ohio
Armed with the most powerful marketing method that exists, Auctioneers all over the world know in order to maximize results for their clients, they must maximize interest in those items. More bidders means more money, just as fewer bidders means less money. The larger the number of bidders, the more competition there is, especially as the bidders sense that the other auction attendees are interested in the same item as they are. And, as we all know, emotions are involved when it comes to bidding at auction.
There is no other aspect of a public auction that attracts attention more than buyers feeling as if they might “get a deal” on something they want. The prospect of a deal is what drives bidders to auctions. Sometimes they feel as if they get a deal, sometimes they don’t, but getting them there is essential to competitive, top-dollar bidding. When sellers place restrictions on the sale of their item at auction, such as a minimum bid or reserve bid, buyers are much les likely to participate because they feel that it removes the “prospect of a deal” component.
For sellers to maximize attention, they need to minimize the restrictions upon the buyers. Auctioneers cannot make bidders bid, but they can see to it that a large crowd shows up auction day to participate. Although many things factor into a buyer’s decision whether or not to attend an auction, the one restriction that deters more buyers than any other is an auction where the seller might not accept the high bid for their item.
Equipped with this timeless truth, Auctioneers know that an “absolute” auction will attract more buyers, and more money, than one that isn’t advertised absolute. The mere sight of the words, “Selling Absolute” in an auction advertisement gets the heart rate of buyers racing. You could compare the absolute auction advertisement to one that says “You might win the lottery.” Wouldn’t a reserve auction advertisement suggest “You probably won’t win the lottery!?”
Most everyone in our industry knows that the market determines the value of something. At an auction, our market is a pool of registered bidders ready and willing to buy that “something.” With a larger bidder pool, we have a larger portion of the market looking at our auction items. Even one bidder can make a material difference in the prices realized at auction. Yet, can we get everyone to attend? Not hardly, but we can get a larger crowd – a larger market – and be much more assured that market values were realized.
The UCC 2-328 defines some basic rules for an absolute auction: Once the auction is opened, and there is a calling for bids, the item must sell unless no bid is received within a reasonable time. As well, if we assume that by the seller bidding, a right of withdraw is being invoked, then the seller cannot bid at an absolute auction – other than at a forced sale (auction). Lastly, it is clear that an absolute auction can be cancelled (withdrawn) prior to the opening of the auction – or calling for bids; in other words, if a seller doesn’t want to sell their item at an auction that has been advertised as absolute, they must decide before there is a calling for bids, or hope for a very quiet reasonable time thereafter.
Along with many states, NAA has furthered the rules for absolute auctions to include:
No auction should be advertised “absolute” or “without reserve” unless there is a bona fide intent to transfer ownership at the time of advertising and at the time of the auction, regardless of the bid or bidder.
An absolute auction should not be held when there are liens or other encumbrances on the property, unless a financially responsible party signs a binding commitment to guarantee that all liens will be paid regardless of the high bid.
If we were to summarize the UCC and NAA’s position, it might be as basic as: “At an absolute auction, if the auction is opened up and there is a bid within a reasonable time, the item must sell without any reserve whatsoever.” However, as we all know, it isn’t quite that simple. Unfortunately, we all see absolute auctions conducted with: - Minimum opening bids
- Seller confirmations, or right of withdraw
- Seller bidding, or bidding upon the seller’s behalf
- Liens – either latent, and/or part of the purchase
Why do we see these misuses of the absolute auction format? It may be that those Auctioneers have clients who are appropriate for a “with reserve” auction, but want more bidders in attendance and increased bidder reaction. Yet, as this logic is applied, it makes it difficult for the word, “absolute” to maintain its true meaning in the marketplace; this harms those sellers who truly want (and deserve) the advantages of absolute auction marketing.
Too, it may even make particular Auctioneers subject to doubt or question. For instance, if an Auctioneer advertises an absolute auction, but doesn’t sell due to the seller not being happy with the high bid (or whatever reason), then what about the next client, and their wishes to take advantage of absolute auction marketing? Do we really think buyers are so ignorant? Isn’t it reasonable to think a buyer at the first advertised absolute auction would think the next one wasn’t really absolute, either?
Is it hard to get a crowd at a “with reserve” auction? Not necessarily, as the actual reserve can be conservative in nature (such as a $100,000 home selling for at least $50,000) or otherwise trifling. However, as the reserve becomes more material in the minds of potential buyers, the less likely they are to participate. I would suggest we need to always keep in mind that not all sellers are appropriate for auction marketing, rather than trying to dilute the true definition of an absolute auction by using terms that do not belong in an absolute format. For example an absolute auction with a “minimum opening bid” or “selling subject to” is not an absolute auction at all. If a seller is not comfortable with a true absolute auction, then another format should be used, whether it be a reserve auction or in some cases, no auction at all.
Trust is one of the essential elements of an Auctioneer. Sellers have to be able to trust their property will be marketed properly and the proceeds handled correctly; buyers have to be able to trust their bids will be taken fairly and ethically and that what has been advertised is truly being offered. Lacking either of these components, it’s not difficult math: No buyers = unhappy sellers. No sellers = no auctions.
Why would we want anyone walking away from our auction saying, “I thought this auction was advertised absolute, but there were minimum bids?” or worse yet, “If I ever need to hire an Auctioneer, it certainly wouldn’t be this one.” Many potential clients are customers today in your auction crowds, and don’t think for a second they aren’t evaluating you, your staff, the prices, and their future utilization of your services. It’s rare for a potential client to call and say that they want to use your services due to their less than ideal experiences attending your auctions.
On the contrary, it is really quite simple. By selling real or personal property absolute (truly absolute), the crowds are larger, the prices are higher, and your seller is happier. As well, more in attendance walk away and say, “Well, prices were high, but if I ever need to hire an Auctioneer, that’s the one I’d hire.” Could any Auctioneer describe an absolutely better day than that?
Mike Brandly began his auction career in 1979. He is president of Brandly & Associates, Inc. and is an associate and Auctioneer for Keller Williams Greater Columbus, a large real estate brokerage based in Columbus, Ohio. Mike conducts 100's of auctions a year and his appraisal company completes over 150 appraisals per year for Probate, Civil and Bankruptcy cases. Mike is the Director of The Ohio Auction School.
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Last Updated on Tuesday, 15 September 2009 19:19 |
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Auction Articles
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Written by Kenny Lindsay, CAI
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Friday, 31 July 2009 09:02 |
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ESTATE SALE OR AUCTION?
WHAT EVERY SELLER MUST KNOW BEFORE LIQUIDATING THEIR ESTATE!  By: Kenny Lindsay, CAI
Each year we receive hundreds of phone calls from regular folks that find themselves in the demanding position as an estate representative for a family member or friend. Assuming such a role is always a thankless and very demanding on your time and nerves. In most cases, it becomes apparent that the person named as an estate representative (executor) lacks the necessary business experience and know how to adequately perform the necessary tasks when settling an estate. When the time comes to properly liquidate the assets of an estate, it seems that 9 out of 10 times, estate representatives improperly select the wrong type of liquidation service which ultimately costs the benefactors of the estate thousands of dollars and added frustrations. We have found that the majority of estate representatives and executors whom we speak to simply do not understand what the difference is between an Estate (Tag) Sale versus an Auction. The fact is, the difference between an estate sale versus an auction is mammoth and under no circumstances are the two services synonymous with one another. ESTATE SALE vs. PUBLIC AUCTION From Wikipedia, the free encyclopedia (Take note of the underlined) An estate sale is a type of garage sale,or yard sale to dispose of the majority of the materials owned by a person who is deceased or will be moving. Estate sales are usually conducted by a professional, for a percentage of the revenues. This is because the scope of the process is usually overwhelming to the survivors, and for the specialist's experience with pricing antique items, his or her following of customers, and the specialist's experience in disposing of unsold goods in an unsentimental manner after the run of the sale. Antique and collectible dealers use estate sales as one of their more important wholesale sources. Estate sales are typically 1 to 3 days long, often with a price reduction toward the end. ESTATE SALE: NO INDUSTRY STANDARD Starting an estate sale company requires no professional standards of any kind. More specifically, there are no professional organizations, education, and training, designations, continuing education or even a Code of Ethics for the estate sale company to abide by. By and far, it’s the wild, wild west of all businesses. ESTATE SALE: CONFLICT OF INTEREST This is the number one red flag that should be at the top of your radar screen. You will find that a large majority of estate sale companies are operated by an antique, Internet auction seller or second hand goods dealer which is clearly a major conflict of interest to say the least. Problems that may arise out of a situation like this is the estate sale company may strategically position and price valuable merchandise which is quietly sold to the estate sale company so they can reap the true value of the merchandise elsewhere. Many estate sale companies reserve the right to retain any remaining inventory at the end of the sale which again, raises eyebrows and is a major conflict of interest. ESTATE SALE: THE EARLY BIRD GETS THE WORM The only form of competitiveness involved with buying your merchandise is folks arriving the earliest on the morning of your sale in hopes of being one of the first in the door to find ‘the good stuff’. Some estate sale companies use a number system where random numbers are pulled out of a hat which determines WHO gets inside the home first while the rest of the buyers stand in line who wait to gain entry and hope that all the ‘good stuff’ was not bought up by the first group that was in. ESTATE SALE: THE JUDGE. JURY AND EXECUTIONER Nobody can possibly be an expert on all collectibles, jewelry, antiques, automotive, tools and even household furnishings. However, the vast majority if not all estate sale companies play the role of the Judge. Jury and the Executioner. In other words, pricing of your valuable assets comes down to one person establishing such values which are often erratic. It’s a well known fact in the antique and resale business that dealers prefer ‘professionally’ operated estate sales as they can capitalize on improperly marked goods - that is, if they are one of the first ones in the doors. ESTATE SALE: MARKETING IS LITERALLY NON EXISTENT The majority of estate sale companies that we have observed over the years have zero concepts on the art of marketing. Essentially, there is no marketing campaign whatsoever with the exception of a classified ad in the local newspaper, a sign on the corner and perhaps the utilization of the Internet in some capacity. Instead of laying out a detailed marketing plan, they cut this corner right out of the equation and brag up and count on their local following. Let’s put it this way, when was the last time you read an article in the local newspaper or a story on the evening news that talked up an estate sale? It does not happen because they are low publicized and non-newsworthy events. ESTATE SALE: NEGATIVE HAGGLING For the most part, there isn’t any negotiations whatsoever at an estate sale. The exception is, if an item isn’t priced then the estate sale company will name a price from off the cuff. The other exception is, typically estate sales a two and three day events where prices are slashed up to 75% off from the original marked price. When prices are negotiated on your merchandise, negative haggling is the automatic process. ESTATE SALE: SHOTTY CONTRACTS AND AGREEMENTS Obviously, this isn’t the case with every company that provides estate sale services but there does seem to be a trend with poor contracts in this field. Those that I’ve seen are simply cut-and-dry one page wonders that are full of legal loopholes and leave the owner practically defenseless - well, at least according to the contact. First and foremost, a good contract should never be written by anyone other than an attorney and never in a fashion to gain leverage over the other party. Common language in an estate sale contract is the estate sale company reserves the right to retain any unsold merchandise. The owner is not allowed on the premises during the sale and the estate sale company isn’t responsible for theft which is ironic considering that you’ll have a dozen or so vastly unsupervised strangers rummaging through all rooms in your home on sale day. In addition, you’ll see that most estate sale companies have very little mention on how they are going to promote your sale. They often pay for all advertising right out of their own commission which they can afford to do because there isn’t much of an advertising campaign whatsoever. Be careful with what you agree to. Read the contract in its entirety and always have your attorney review the contract for legalities. ESTATE SALE: A MOUNTAIN OF LEFTOVERS Leftovers are fine at Thanksgiving and Christmas but not when your ultimate goal is to sell and clear out the residence of personal property. Unlike an auction, the likelihood that you are going to have a mountain full of leftovers and a big mess on your hands is pretty likely. Some estate sale companies will address this concern and make ‘clean up’ arrangements at your expense. ESTATE SALE: YOU CAN’T WATCH! Despite the fact this point was mentioned in the ‘contracts’ section of this article, it deserves its own section. Many estate sale companies have a provision in their contact that no member of the family is allowed on the premises while the sale is under way. Regardless of the reasons given, if this isn’t a red flag to you then nothing is. The fact is, most estate sale companies do not want you around during YOUR sale. Like I said earlier, it’s the wild, Wild West of all businesses where there is typically no accountability whatsoever from a licensing, registration, educational or even the owners of the property being present. ESTATE SALES ARE A POOR BUSINESS MODEL At the end of the day, an estate and tag sale is simply a glorified garage sale which is typically operated by one or two semi or retired part-time ‘weekend warrior’ type of small business owners. None have any professional training, or education in the ‘estate sale’ field whatsoever. There are no ‘industry standards’ starting with a strict code of ethics because there isn’t any trade organizations or associations. Many are current or former antique shop or reseller dealers who bring a level of expertise in specific areas but nevertheless, when they are dealing such goods along with representing an estate, it’s clearly a conflict of interest to say the least. Despite all of this, the actual estate sale process is poor and rarely advantageous to the seller. Assuming that everything an estate sale company is above par, the process alone nullifies the effectiveness of the ultimate goal - receiving the optimal value on the goods through a complete liquidation effort. Their liquidation is never complete without the use of a garbage dumpster, goodwill and a guarantee in writing that the estate sale company will ensure that the property is clutter-free and clean at the end of the sale. There is NO salesmanship whatsoever when it comes to selling your valuable assets at an estate sale. None. The handlers of the estate use the ‘silent salesmanship’ approach to selling your goods which equates to a price tag and willingness and hope that a buyer will purchase the item. Estate sales are simply not the best choice when liquidating an estate. WHEN ESTATE AND TAG SALES ARE EFFECTIVE Choosing the right type of service to liquidate an estate is subject to the type of merchandise that needs to be sold. An estate sale (tag sale), garage sale is effective if the estate simply contains general household merchandise and modern day furnishings and foreign imported goods. However, if there is a selection of fine antiques, collectibles, memorabilia and certain types of collections, then an estate sale is absolutely a poor choice. Keep in mind that our firm offers estate sale services but there is a reason why we have conducted just ONE estate sale in the past decade - because we strongly advise our clients against choosing this method of selling their assets. THE DEFINITION OF AN AUCTION:
An auction is an event in which goods or property are sold to the highest bidder.
By being open to the public, an auction ensures a wide range of bids, and sometimes items at auction can fetch surprisingly high prices. The bidders, in turn, create their own market, determining on an individual basis how much they want to pay for an item, rather than having prices dictated by the seller. WHY SHOULD YOU SELL YOUR ASSETS AT AUCTION? The auction method of marketing is one of the world’s earliest professions. In fact, this unique method of selling literally dates back to thousands of years and the reason for this is quite simple. Auctions are the quickest and most efficient method of selling goods at market value. Truly professional auctioneers are full-time professionals that typically have years of experience and an extensive educational background in the auction industry. OVERVIEW Creates Competition: When Bidders Compete, Sellers Win. Establishes a floor and eliminates the ceiling on pricing Seller has full control (when, where, how much, terms, conditions, etc). Fully transparent and recognized as being fair to all parties in the marketplace Only method that truly reveals the Current Fair Market Value Satisfies Governmental and Judicial requirements Creates excitement within the marketplace Creates a sense of urgency that cannot be duplicated by any other method of marketing Converts all your items into cash. Not just your best items Buyers come prepared to buy Auctions expose your assets to a larger pool of qualified buyers Fully transparent! Sellers are welcome and encouraged to attend THEIR auction. AUCTION: THERE IS AN INDUSTRY STANDARD There is a well defined industry standard in the auction industry through the National Auctioneers Association, the Michigan State Auctioneers Association and the State of Michigan. Regardless of which auction company you are considering to do business with, it’s important that they are members of their state and national auctioneers association as they are required to follow a strict code of ethics with these organizations. Furthermore, the auction industry provides extensive educational resources with the most distinguished is the Certified Auctioneers Institute which is a three year designation program held at Indiana University in Bloomington, Indiana. The CAI designation is equivalent to a PhD in the auction industry and roughly 1,100 auctioneers worldwide maintain this important auction designation. In addition, the Universal Commercial Code specifically outlines important protocol that professional auction firms are to adhere to. AUCTION: 100% TRANSPARENT! American Eagle Auction & Appraisal Company, LLC not only welcomes but we encourage our sellers to attend their auction! There is nothing more satisfying than seeing the owners of the property smiling while witnessing the success of their auction event. At a public auction, each item sold is completed in open view which leaves nothing to the imagination. AUCTION: THE AUCTION METHOD OF MARKETING Generally speaking, professional auctioneers are specifically trained and experienced in the ART of marketing. In fact, this is the most important aspect of the entire auction process. On a regular basis, auctions make the headlines with local and national news agencies because auctions create and demand attention! Professional auction firms go to great lengths to market your assets to the right target market audience as opposed to limiting their advertising by placing generic classified ads in the local newspaper and a cardboard sign on the street corner. In terms of marketing alone, the auction method of marketing in a league of its own. AUCTIONS DELIVER FAIR MARKET VALUE! Auctions are the only method of selling where prices are negotiated upwards through the momentum of competitive bidding. Can you think of a better way to determine fair market value than an auction with an object offered by a willing seller and a crowd of willing buyers? Without question, dealing with an experienced auction firm, a well prepared and marketed auction will result in the highest possible fair market value on that particular day in a timely and efficient method. Before you make the decision on liquidating your estate, be sure to consult with your local auctioneer and discover how the auction method of marketing will work for you. Only at auction!  .
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Last Updated on Monday, 03 August 2009 06:15 |
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Auction Articles
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Written by Phillip Pierceall
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Monday, 27 July 2009 20:56 |
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MY RUN FOR THE NATIONAL AUCTIONEERS ASSOCIATION BOARD OF DIRECTORS IN 2009 PHILLIP L. PIERCEALL I have always prescribed to the school of thought that you get out of something what you put into it, if it starts giving back then you need to take care of it. The “it” in this case is the NAA and the Auction Industry, I feel as passionate about both, and think of myself as one of the auction industry stewards. I feel that if I can do my job as one of the many caretakers of the auction industry it will be handed to the next generation better than it was handed to me.This past February 2009 when the election committee started taking applications for nominees to run for the board of directors, Kurt Keifer the current NAA Treasurer had put a post on the NAA forum asking for candidates to run for the NAA BOD. I felt like it was my time to start giving back, I have been an NAA member since 1997 and also belong to my state association The Texas Auctioneers Association.When I decided to run, I had a few rules that I followed. I was not going to spend any money on campaigning and I didn’t, I was going to use the NAA Forum as my media platform and I did, most of all I was going to campaign on the basic grass root values that NAA and the Auction Industry was built on – Professionalism – Education – Feeding Your Family - Helping Auctioneers (all auctioneers both young and old, no matter if you sell box lots or heavy
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Last Updated on Monday, 27 July 2009 21:22 |
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