What about when you hear the word “auction” – what do you think of? Does it conjure up the same images for you? Do you think “opportunity?” Do you think “rare and unusual items?”

Well, we are here to tell you that an auction is all of the above and more. In fact, an auction is not only the best and most exciting kind of “sale” it is also the most advantageous type of sale for both buyers and sellers. And through the years, it has become the sale of “choice” by many, many people throughout the country.

Auction Myths
How many of you have been to an auction? Well, for those of you who haven’t, we want to dispel a couple of myths. Auctions are a CHOICE for today’s buyers and sellers. They are not a “last option.” Many people think that auctions are only held when someone has died or has had their property, such as their home or car, repossessed. The reasons for auctions are as varied as the materials and possessions sold there.

Another myth is that you have to be an “experienced” auction goer to buy and sell. Everyone is welcome and the staff are great about helping first timers to understand how auctions work, how to make a bid, etc. Understanding the chant is what some people find the most intimidating. Here’s a tip: listen carefully to the caller for a while and get used to his chant method. If you stick around, at the end of the talk I will give you a sample of my chant and explain to you how it works.

Auction Method of Marketing
We refer to our method of selling as “The Auction Method of Marketing.”This means much more than just making a sale. It means orchestrating a business transaction and entering into a commitment to meet the needs of both our client and our buyers. We take responsibility for the entire auction. We dedicate many long hours to prepare for and orchestrate the sale so that when that auction gavel falls, the outcome is positive for both the buyer and seller. Some of our responsibilities include:

• Rendering appraisals on merchandise.
  We get to know your property. We use our expertise to look at all the items up for bid and assess their value.
• Advertising the sale.
  It is part of our responsibility to ensure that people know about the auction, so we work hard to reach as many of them as possible through ads in the newspaper, fliers and posters and web site postings.
• Repairing and cleaning up items for display.
  We want your goods to look the best they can so we spend time fixing them, polishing them up and displaying them so they will be appealing to bidders.
• Keeping a financial record of items sold.
  We keep a log of items sold and their sale prices.
• Cleaning up the site after the sale.
  When the sale is over, we help tidy up the auction location, picking up bidder numbers, debris and other items. We want to leave it as we found it before the sale.

Background on Auction Industry
I want to give a little background on the auction industry. It has a vast history that some say dates as far back at 500 B.C.

• The term “auction” is derived from the Latin word “auctus,” which means “increasing or gradual increase.” Today the word as we have come to know it means a public sale of property to the highest bidder.
• Rome is said to have been the first country to license auctioneers.
• American auctions date back to the Pilgrims’ arrival on America’s Eastern Shores in the 1600s.
• George Washington liked to attend auctions and is said to have selected all of the furnishings for Mt. Vernon through auctions.

The history of auctions is solid and substantial. Most everything has been sold by the auction method of marketing, including livestock, antiques, real estate, household items, business equipment, artwork, collector cars, electronics – I could go on and on, but you get the picture.

The Auctioneer
Auctioneering is a solid and reputable career. Today there are an estimated 30,000 auctioneers throughout the country.

Auctioneers are educated marketing professionals versed in their field. They are detail-oriented, technology savvy and leaders in their community. They just keep getting better at their trade and that’s a plus for consumers.

Many auctioneers attend auction school to learn their trade, then become licensed in their profession.

Continuing education classes are another part of the auction business. Auctioneers attend classes to keep up on current trends and to learn new methods such as video auctioneering and live internet auctioneering. Some auctioneers take classes to earn specialized designations in fields such as real estate, personal property, agri-business, legal and more.

Referrals is a great way to find a good auctioneer, but a tried and true method is to look for auctioneers who are members of the National Auctioneers Association. NAA members are bound by a code of ethics that protects consumers against unfair auction practices, and they are privy to a wide range of educational materials and programming that help me to stay abreast of the latest developments in the industry. Just look for the NAA logo when looking for a trustworthy and professional auctioneer.

Benefits of Auctions
Now that we have given you some background on the auction industry, we want to talk with you about the advantages of using the auction method of marketing to buy and sell goods.

The best way for us to do this is to compare the auction method to other sales methods. How many of you have ever been to a garage sale or yard sale? How about a swap meet or open market sale? We’re sure all of you have been to a community event or fair where there are a number of booths featuring items for sale. All of these sales are approaches people use to market and dispose of their property, and make some money.

When compared with auctions, these types of sales are not in the same ballpark. I’m not knocking these types of sales; they serve a purpose and are quite popular. But if you’re looking for the best and most efficient way to sell your property, nothing compares to an auction.

Garage sales, swap meets and these other types of sales are very time-consuming for the seller (including the prep time, the time spent sitting and waiting for customers to come, etc.). Most of their marketing comes in the form of a cardboard sign stuck in the ground, and sometimes through a general ad that publicizes the event, but not always their particular items or booth. And when the sale is over, there are always a large number of items left. This is true, isn’t it? How many of you have had a garage sale or yard sale, only to end up with half the items you had for sale back in your house? Or, you spend time and energy loading it all up in your car or truck and taking it down to the Goodwill store or local thrift store?

With an auction, the auctioneer and his or her staff take care of preparing items and estimating their fair market value. They professionally market the sale so that people from throughout the county, state, or even country will know about it. And they make it their job to create a competitive and entertaining atmosphere that attracts consumers to the sale. Their hand gestures, eye contact with the crowd and their rhythmic “chant” stirs buyers and brings the sale to life. Through auctions, sellers can obtain the highest possible price, dispose of all their property and receive money for their goods all in one day.

And buyers have the opportunity to “shop” for unique merchandise and pay the price they want in the spirit of competition. All of these things separate auctions from other types of sales.

If you have never been to an auction or sold goods through the auction method of marketing, you’re missing out on expertise, value, excitement and fun. It’s one of the oldest and most popular sales methods today.

An uncluttered background focuses attention on the subject, resulting in a stronger picture. Place your subject against a plain, non-distracting background. Alternatively, sometimes just moving yourself (and the camera) a few feet one way or the other can eliminate distractions from view.

A simple setup outside or inside by a window is all you need. Create a plain background by draping a bath towel or solid-color sheet over something or tacking it to the wall. Smooth out any distracting folds. Shooting the object in the shade or on a cloudy day takes advantage of soft lighting and shows more of the detail.

This is no time to worry about composition. Get in as close as your camera allows to clearly show the object you want to sell. If that still isn’t close enough, check if your camera accepts accessory close-up lenses, or crop and enlarge the picture.

For close-ups with a digital camera, use the display screen to compose the picture and then review it. If you think it could be better, you can delete the picture and retake it.

With picture-editing software, you can adjust brightness and size, and do much more to make your pictures attract buyers. If your pictures are on film, you can order a Kodak picture CD or use a scanner to digitize them. Cropping the pictures and saving them as low-resolution files will speed up download times.

1. Prepare the product. No buyer wants to bid on dirty china or toys. Clean the item, if possible, and make it presentable for the photos. Even older, antique items can probably be dusted off with a soft cloth. Do what you can to make the item itself look great, or every other step here won’t matter.
2. Find a backdrop for the item. The last the you want to do is take a picture with a bunch of junk cluttering the background and distracting the eye. It is a real turn-off to buyers. You don’t need to get elaborate. Use a sheet or a piece of fabric. A visit to the local fabric store could yield a few great backdrops. Look for contrast. For lighter-colored items, a black backdrop works best, and vice versa for dark objects.
3. Find a place to set the objects, be it a table, chair or even the floor. You want a place that is easy to get to on eye level. You also want to find a place that is stable and will not cause the item to move or tilt.
4. Use available light. While most cameras come with a flash, that can wash out the image while casting unpleasant shadows on the background. Soft outdoor lighting works well if the sun isn’t so bright it casts shadows. You can also set lamps around the item, although you do not want to point light directly at the item. You are looking to make the item well-let without obvious shadows.
5. Get close. Don’t be shy. You want to fill the frame with the object as much as possible. Bidders want to really see what they are buying. Be sure your item is also level in the frame (not tilted one way or the other).
6. Give perspective. If size is relevant to your item, be sure the photo demonstrates this. There are a few ways to do this. If it’s a small item like jewelry, place a penny or a dime next to it. For larger items, you can even use a ruler or yardstick. Just look for something simple that won’t detract too much from the item itself.
7. Try different angles. Shoot it from above, straight-on, profile, below or slightly on an angle. Don’t be afraid to take several pictures. After all, you can delete ones you don’t like. You may realize your items looks best when viewed from the side.
8. Take pictures of different parts of the product. If it’s a book, open it to the title page or shoot the back. If it is china, take a photo of the inscription on the back. Since your buyers can hold the item and move it around, do that job for them.
9. Edit the photo. There are numerous photo editing software programs out there, and odds are your camera came with one. Even simply lightening a photo can make a huge difference. You can also play with other editing features. Be sure you save a copy of the original before editing, however. Also be careful not to alter the image to a point that is misleading to buyers.
10. Use multiple shots. Pick one main overall shot of the item, but also use a couple other detailed shots to assist buyers. Use two of the different perspective shots. The more buyers can see, the more likely they are to make an informed decision to bid.

If you have not viewed the lots for auction prior to the auction day you will need to allow yourself time to inspect your prospective purchases before the auction starts if this is allowed, some auctions may not allow you to view the lots other than in the specified viewing dates and times, with some “catalogue” auctions you may not be allowed to view the lots after the auction has started. You should confirm these details with the auctioneers prior to the auction date.

When a lot you are interested in bidding on comes up for sale the auctioneer will announce the lot number ( either found in the catalogue next to the item or placed on the item during the viewing period ) and give a brief description of the item usually tied to the description given in the catalogue.

A starting bid will be suggested by the auctioneer and usually bidding will start below this price so do not assume the auctioneers starting bid is the lowest price available. If the item has a reserve price the auctioneer will often start the bidding above this price and reduce the start bid towards the reserve price until a bid is made. The auction catalogue will usually display a guide price for the item which is above the items reserve price.

You are free to start bidding at any time after the auctioneer has announced the starting bid. Some auctions especially liquidations, bankruptcies and receiverships have no reserve prices so give it a little time before you start your bidding, if there are no other bidders your first bid may be the price you pay.

If similar lots are listed together in the catalogue and you are the buyer of the first lot you may then have the option to purchase the similar lots at the same price as the first. When bidding it is usual to get the auctioneers attention by raising your hand or making some other clear gesture to the auctioneer followed by the amount you wish to bid if different to the auctioneers announced price. Now you have started bidding the auctioneer will return to you every time the bid is against you to see if you wish to raise your offer, a clear shake of the head will indicate to the auctioneer that you do not wish to continue bidding

Bids go up in steps controlled by the auctioneer and until the bid nears the assumed final price a bid of less than this amount will not usually be taken.

If your bid is the final bid and the price reached is above the items reserve price you have been successful in your purchase.

After you have won the bid you will have to pay an immediate deposit, the amount of deposit will be stated in the terms and conditions of the auction catalogue. The type of payment method i.e. cash, bank drafts, credit cards will be stipulated in the catalogue.

The amount of time given to pay fully for the purchase and clear the goods from the auction house will also be given in the catalogue.

Remember it is usual for the goods to be the responsibility of the purchaser after the hammer has fallen

If the items for auction are large, heavy or difficult to move, representatives of removal companies will usually be present, but this is worth checking with the auctioneers before you make your purchase.

(Information supplied by the National Auctioneers Association)

People are Flocking to Auctions

Auctions are one of the oldest forms of selling property; their history spans centuries. And time has only increased their popularity. A research study commissioned by the National Auctioneers Association shows that auctioneering is an industry on the rise.

Did you know that more than half of the total U.S. population has attended a live auction?

In 2004, the value of all goods and services sold at live auction in the U.S. was approximately $202.7 billion. This figure is up 6.8% over 2003 and translates into a huge number of satisfied buyers and sellers of goods.

They’re entertainment at their finest. That’s what most consumers say about auctions and that’s the number one reason they attend. So what makes them so fun and entertaining? Some say it’s the unexpected and the idea of experiencing something original.

In addition, consumers find auctions fun because they’re a rewarding activity for the whole family to enjoy. On average, consumers are willing to drive 1.3 hours to attend a live auction, with 75% bringing the family when they go.

The Value of Selling at Auction

So how can auctions benefit you, as a seller? Why are they the best way to sell property? Well, there are a number of reasons

Hiring an Auction Company

When you make the decision to sell by auction, the most important thing you must do is hire a qualified and experienced auctioneer or auction company to handle your auction.

There are thousands of auctioneers throughout the United States who offer a wide range of auction services to consumers. So what do you look for when hiring an auctioneer or an auction firm?

First, look for someone who specializes in selling the type of property you want to sell. All auctioneers have specialty areas and most have more than one. What do they know about the products or goods you are selling?

Experience is another critical element. How long has the auctioneer or the auction company been in business? What is their reputation? Look at their web site, if they have one.

Most importantly, look for an auctioneer who is a member of the National Auctioneers Association. Most will display this logo on their business cards, signs, web sites and other business materials. The NAA is the largest professional association for auctioneers in this country, working for the betterment of the auction industry. It offers continuing education programs for auctioneers to help them keep up-to-date on the latest trends and technology for the auction industry.

The NAA also offers a wide range of designation classes to make auctioneers “specialists” in areas such as personal property appraisal, real estate, estate auctions and more.

All members of the NAA abide by a code of ethics that guarantees high standards to customers and fair business practices.

In short, this symbol means you have made the best choice when it comes to auction services!

We work hard for our money, but most of us spend the majority of our waking hours working. Our money pays for our homes, our land, our automobiles, insurance, clothes, food, all of our possessions and so much more. So when it comes to selling those possessions and property, the smartest thing you can do is let an auctioneer help you continue to get the value you deserve. A professional auctioneer knows what land is worth, what household items and office equipment are worth, and what personal property is worth. A professional auctioneer will manage your sale so you can get a good value from these items in which you have invested your hard earned money.

You work hard for your money, and we will work hard for your money, too

(Information supplied by the National Auctioneers Association)

Find an auction
Use our auction locator to find an auction nearby. You can even search for a specific type of auction, if you’re just looking for antiques, dolls etc. One of the best ways to learn is by observation. Attend a couple of auctions with the intention to simply watch and learn. You’ll get the feel for how things work and be prepared to avoid costly mistakes.

Don’t discount an auction that is not geared to your area of interest. An office furniture auction will likely have computers, filing cabinets and basic office furniture but there may be the odd piece of antique furniture. You’ll find this out at the preview. At this office furniture auction, most attendees will be seeking the computers and filing cabinets. There may not be as many attendees interested in the antique furniture. So, you may come away with a great deal.

Preview the auction
Many auctions let you preview what is going on the auction block a few days – or even weeks – in advance. Once you’ve located the auction you want to attend, call the auctioneer or auction house to see if they will have a preview date. This is your chance to look items over thoroughly and to get up close to see any damage or problems with an item.

Arrive early
On the day of the auction, try and get there early enough to register and get a good seat. It not only important for you to be able to see the auctioneer, but for the auctioneer to be able to see you.

Inspect
Carefully inspect any items you’re interested in. Are they damaged? Do you see other people looking at the same items? How much competition does it look like you’re up against? Know what you are looking at. Here’s where reference books and price guides and the internet come in handy. Doing the legwork before hand, increases the likelihood that you will pay a fair price at auction. Not doing so, can lead to disaster.

Know the Terminology
There are a few terms that you need to understand so that you get the best buy at an auction.

• Pre-sale estimate – The auction house bases this price on their past experience. It the price they expect the item to sell for.Provenance – It is the history of the piece detailing past owners. This information is not always available, but it can be a juicy tidbit depending on the owner.
• Start Price – This is the price at which the auction will begin.
• Reserve Price – This is a pre-set amount that the seller has agreed is the lowest amount he/she will accept. Not all items will have a reserve.
• Keep in mind items with no reserve will sell even if there is only one bid at the start price. When bidding on items with no reserve, if you win, you pay. On the other hand, items with a reserve will only sell if the reserve price has been met. You’ll find out if the reserve has been met, after the bidding is completed. The reserve price is not disclosed at the close of bidding.
• As-Is – Just as it sounds, as-is means the items is selling in the condition that is currently in. It likely means that the item is a fixer-upper or needs work in some way.
• Hammer Price – This is the price that the item sells for when the gavel comes down.
• Conditions of Sale – This refers to the terms and conditions of the sale including any warranties, special instructions etc.
• Lots – There are two meanings for lot at an auction. First, all items up for auction are assigned a number. This is referred to in the catalogue and described by the auctioneer as a lot. Second, a number of small items such as a collection of costume jewelry can be grouped together and sold as a lump sum. This, too, is referred to as a lot.
• Absentee Bid – Bidders do not have to physically be in the auction house at the time of the auction to bid. Bids can be placed by phone, fax or online. Arrangements must be made before hand to place an absentee bid.

Set a price
What are you willing to bid? You should have a number in mind, so you don’t go way over your budget in the heat of the moment. Don’t forget to include your total costs, like repairs, decorations, fees, and delivery charges. Use the bidder’s package you were given – if you were given one – at registration.

Bid
Have fun! Carefully follow the auction and get a feel for who you’re bidding against. And remember, the maximum bid you’re willing to make is just that; a maximum. Don’t jump to that number unless it’s necessary. You might very well get the item you want for much less.

Pay
If you win, find the Bookkeeper or Clerk and take care of your bill. You can also arrange for delivery at this time.

Enjoy
You just had fun and got a great deal. Now enjoy your new item(s)!

(Information supplied by the National Auctioneers Association)

Pack the items you’ll need before you leave for the auction.

Some suggestions:

* A small flashlight to check details on anything you’re thinking about bidding on
* A pen and paper
* A value book
* Identification, checkbook, and your seller’s ID if you are buying for a business.

Dress comfortably. Remember, it might be hot/cold outside but the air conditioning/heat might be working overtime inside.

Eat something before you go. There’s a good chance you won’t have access to food while you’re there.

Save a seat before you look at the preview. Popular auctions fill up fast, and you will want to be close to the front if you are bidding. This is one time where it’s good to be the teacher’s pet.

Ask what types of payment are accepted. If the auction house charges a buyer’s premium and inquire about hauling/delivery concerns before you bid.

Don’t bid on anything you don’t examine in the preview. Unless you really, really want to.

Pay attention! Make sure you know what item number is being bid on at all times, or else you might end up taking home that 1972 Formica table instead of that 1850 antique one.

Raise your paddle to bid. Once you’ve been acknowledged, further bids on an item can be made by a nod of the head, etc. Don’t worry; sneezing won’t accidentally put you into the poor house.

If you’re traveling to the auction, make sure you have a way to get the items you purchase packed properly and home with you. Remember, bubble wrap is your friend.

(Information supplied by the National Auctioneers Association)