Frequently Asked Questions

1. What is an AUCTION?

  • The AUCTION METHOD of marketing is a process of selling and buying goods by offering them up for competitive bids.

2. Why would I sell at an AUCTION?

  • Imagine selling your items for the highest price, rather than buyers negotiating a lower price in their favor.  That is the service an AUCTION provides!

  • We feel the AUCTION METHOD of marketing is the most profitable way to convert personal property, goods and real estate into cash.  Sellers are offered the highest possible selling price at a true market value.

  • AUCTIONEERS target markets and advertise their sales to draw the most buyers so items will sell for top dollar.  

  • AUCTIONS create a sense of urgency when a group of buyers are put together to “compete”, driving the price upward.

  • You won’t pay commission or closing costs to sell your property.  The buyers pay your commission and closing costs, rather than you the seller. 

3. How do they work?

  • The best way to understand how an AUCTION works is to find a local one to attend.  Check out the auctionzip calendar to find upcoming in-person AUCTIONS.  Most AUCTION companies are happy to have observers, buyers and sellers in the crowd!

  • Once you feel comfortable and find an AUCTION that you are interested in purchasing at, checkout their website to find details on how to register and what your payment options are.  Registering also provides you with a bidder number, you cannot bid without a bidder number.

  • If they offer a sale preview make sure you attend to checkout the items in person before you bid.  Oftentimes, the crowd is too thick on AUCTION day to get a good look at the property/items.  

  • Be clear when making a bid, raise your paddle to get the attention of the AUCTIONEER or his ring people.  

  • Do your research!  Make sure you know how much you are willing to pay for an item, good or property.  The fun and exciting atmosphere can push you past your budget and once the AUCTIONEER says sold and calls your bidder number you are the owner and have a legal contract to purchase, even if you instantly regret how much you paid.  

4. What is “true/fair market value”?

  • True/Fair Market Value is the price goods or property will sell on the open market between a willing buyer and a willing seller.

  • AUCTIONS are the purest form of supply and demand in action.

5. Aren’t AUCTIONS only for distressed properties and stuff not worth much?

  • Not at all!  The AUCTION METHOD offers the most time efficient and hassle-free way to sell.  That is why you often see foreclosure and estate sales being sold at AUCTION.  People in these situations want to make sure they are getting the highest possible price in the shortest amount of time.

6. What is an “absolute” AUCTION?

  • Indicates the property, item or good will sell to the highest bidder regardless of price.  There is no minimum, and the seller cannot reject the highest bid attained.  

7. What is a reserve?

  • An undisclosed dollar amount set by the seller.  The property, item or good cannot be sold unless bidding meets or exceeds this amount.

8. What is the hammer price?

  • The price upon the AUCTIONEER’S fall of the hammer or when he/she says “sold”.  This does not include the buyer’s premium or sales tax which will be added for your “total price.”

13. Will you sell my property, goods or home?

  • If you are truly motivated to sell we would love to chat through your options.

  • Remember not all property is a fit for the AUCTION METHOD of selling. We promise to be honest and upfront with you. If we feel we are not the best option for your selling needs.

9. What is a buyer’s premium?

  • A commission paid by the buyer, usually a percentage of the bid price.

10. What is the total price I will pay when I am the winning bidder?

  • The hammer price + buyer’s premium + sales tax = total price

11. Do I have to pay sales tax?

  • Yes, unless you have a state issued sales tax exemption certificate on file with the auction company.  You can provide this certificate at registration.

12. What “high does bidder’s choice” mean?

  • When more than one item is up for bid at the same time.  For example; 15 fishing poles.  If you are the high bidder the AUCTIONEER will ask you if you would like “choice” and you would pick which one you want or you take all 15 (your bid x 15 = price paid).  If you only choose one or a few, the AUCTIONEER will offer anyone else a “choice” at that same high bid price.  If no one else is interested, the bidding will begin again until all are sold.