How do I know if the auction method of marketing is appropriate for my situation?
Auctions create an accelerated, time defined marketplace for selling real, tangible and intangible property. Anything can be sold at auction; however, not every specific situation lends itself to the auction process. A variety of circumstances should be considered when evaluating your selling options. As auction professionals we assist our clients in analyzing their marketing challenge and determining if the auction choice offers a high probability option for achieving their goals.
If I‘m considering the auction method of marketing, how do I get started?
The Renaissance Auction Group offers a no cost, no obligation initial consultation. Contact us at your convenience to discuss your auction marketing needs. Our phone lines are open Monday – Saturday 9AM-9PM and Sunday 1PM – 9PM.
How do I choose an auction company?
Do your due diligence. As in any profession, auctioneers come in all sizes, shapes and levels of competency. Membership in national, state and local professional organizations and the earning of advanced designations such as those conferred by the National Auctioneers Association (NAA) and The National Association of Realtors (NAR) demonstrates an added level of commitment to the profession.
Nothing confers an automatic mantle of competency. Ask questions. Listen to the responses carefully. Look for the individual that conveys an understanding of your specific needs and offers custom tailored solutions. Numbers are an important aspect of the auction trade: bid increments, prices realized, commission rates, expenses; however, the client is one element of the equation that should never become just another number.
How much will it cost?
That depends on the value of the item(s) being sold and the amount of time and effort required to successfully complete the process. In the majority of circumstances, auctioneers work on a commission basis. That commission is generally calculated as a percentage of the selling price. Other expenses including packing, hauling, shipping, photography, insurance, storage, travel and labor may or may not be applicable. Because there are a number of variables involved in each inquiry, few if any auctioneers charge the same fee for every transaction. That is why we offer a no cost, no obligation initial consultation to potential clients.
Is the cheapest auctioneer the best choice for my auction marketing needs?
That depends. Do you choose your provider of medical, legal and financial services based solely of price? Do you always purchase the cheapest food, clothing, lodging and transportation options available? Our rule of thumb regarding this matter is as follows:
If you are convinced that the auction professional offering the least expensive fee structure can meet or exceed the results of other auction professionals you are considering, then the choice is fairly obvious. If however, you believe that another choice may yield a higher overall result; then choosing the cheaper alternative is a clear example of “penny wise and pound foolish”
Why is that? Every calculation involving an auction transaction starts with the price realized. That is the “Big Number”. Typically, an auctioneer’s commission represents a minority portion of that “Big Number”. That means that for every dollar generated by the auction transaction, the consignor receives the majority return and the auction professional receives a lesser amount. That calculation works the other way as well. For every dollar left on the table due to poor product knowledge, inadequate marketing and / or insufficient attention to detail, the consignor suffers the greatest loss. Just like any cheap product or cheap service, a cheap auctioneer can cost you more than you might imagine. Most individuals don’t seek auction services on a regular basis. Many only need an auctioneer once or maybe twice in their lifetime. The more significant the asset that you are considering, the more important it is to base your choice of an auction professional on their ability to define and market that asset. It’s the “Big Number” that counts and the bigger the asset the greater is the importance lent to that proposition.
How long does the auction process take from start to finish?
There is no single answer to this often asked question. The nature of your auction marketing challenge will determine the duration of the process. Do you have one item to sell, a small group of items, an entire estate, a business inventory, an ongoing enterprise, real estate, multiple parcels or asset types? All of these factors will impact the amount of time required to successfully market the product. Taking that into consideration, the definition of the auction process is an accelerated, time defined marketing approach that yields fair market value through professional marketing and competitive bidding. By definition, the auction method of marketing provides for the expeditious conversion of assets to cash. During the course of your no cost, no obligation initial consultation, we make every effort to offer you a preliminary timeline for achieving your auction marketing goals.
Doesn’t everything go cheap at an auction?
The simple answer is no. An auction conducted by a competent professional yields fair market value results. If auctions are a bargain basement form of marketing, why are the best automobiles, fine art, jewelry, antiques, collectibles, livestock and real estate sold at auction? Auctioneers aren’t alchemists. We don’t extract gold from lead. What we do is convert illiquid asset to cash in an accelerated and orderly fashion using competitive bidding as the method for achieving fair market value.
My friend had an auction of her mother’s estate and she wasn’t pleased with the results. Why should I expect a different result?
All auctioneers aren’t created equal. Every auction marketing challenge is unique. Besides producing a credible auction event, professional auctioneers understand the importance of honesty, transparency and the need to cultivate realistic expectations for their clients. Does that insure that every client will be satisfied with the result? No.
A professional auctioneer is obligated to perform due diligence, insure the integrity of the auction event, respond to their client’s needs promptly and comply with the terms of their contract. We can’t guarantee certain happiness. What we can do is offer competent professional auction marketing services using the proven techniques for establishing fair market value via the auction method of marketing. Clients should expect no more and demand no less.