Thursday, July 6, 2017

Why Auction?

Why auction?  I get that question a lot.  First we must understand the objective.  Generally speaking, auctioneers are problem solvers.  What problem are we trying to solve and what are we trying to sell?

Sale of a common asset.  When dealing with common assets, the general goal is to divest the owner of the item(s) as quickly as possible.  Price for these types of assets can sometimes be lower than the seller expects, but when promoted properly by a professional auctioneer, they will achieve market value.  In fact, they have the potential to bring more than expected and sometimes do!  Things falling into this type category might be furniture, equipment, business assets, most mainstream collectibles and estate contents.  Common or distressed real estate also fits into this category.

Sale of a unique asset.  Unique assets benefit greatly from the auction format as interested bidders are very motivated to compete for something that they might not otherwise have access to.  There is a reason that Shelby Cobras and precious gemstones are commonly sold at auction.  They must still be promoted properly and professionally, but this scenario is the same as above.  Market value will be reached.  Things falling into this category might include rare coins, collector cars, highly desirable real estate, rare antiques or even intellectual property.

In either scenario, the process is honest, efficient and transparent.  Additionally, both situations benefit from competition between interested buyers.  One is about sheer liquidation, but both will yield market value.

The best example I ever read came from champion auctioneer, and all around auction rock star, Renee Jones as she recounted a phone call with a potential client.  It went something like this:

Caller: We are looking at your company and another group to handle our Mom's estate. What makes you different? 

Renee: Well, thanks for asking! While I can take up a tremendous amount of your time let me provide you with what I believe is most important for you to consider when making such an important decision. 

1. Public auctions allow for competitive bidding in real time. It is an equal playing field for all customers - not first come first serve and we sell EVERYTHING in a very short period of time. 
2. We are licensed and regulated by the state. 
3. We are insured and do not use temp labor for our auction events. 
4. We do not purchase assets at our auctions for personal use or to "flip" for profit. 
5. I can provide you with positive references from clients all over our region.
6. We charge a competitive commission, no up front costs, and handle all transactions - credit card, wire transfer, checks and accept the risk associated with them. 
7. We collect sales tax and follow the law to the letter. 
8. We have appraisers on staff and catalog writers who are experts in what they do. 
9. We have real estate agents in our firm who can handle the real property transactions as well. 
10. And above all else - We want your business and will provide you with professional service beyond reproach. Now, ask me anything you would like so I can help you make the best decision...

Caller: Renee, can you meet us in the morning to sign a contract? 

Renee: Absolutely.

I would be happy to talk with you further about how the auction method of marketing can yield results for you.  Whether you are an attorney, banker, trustee, executor, real estate agent, or just a regular guy like me, I likely have a solution for your situation.  Feel free to reach out any time!

Alex Grovenstein
GA Auctioneer License #4105
SC Auctioneer License #4534
GA Real Estate License #366186

Tuesday, April 11, 2017

Vintage tractors and 200 farm toys to be sold at auction April 13-23

A collection of five vintage tractors and over 200 farm toys, known as the Southeast Georgia Collection, will be sold at auction April 13-23.  The name for the auction arose because of the rarity of such a large collection of this type in the southeastern United States.

"It is quite a treat to find a farm toy collection of this size in Georgia," said auctioneer Alex Grovenstein.  "They are a little more common in the midwest and other parts of the country, but not really in Southeast Georgia."

The collection consists of nearly every brand imaginable from John Deere and Ford to Case, International and Massey Ferguson.  You will even find White, Gleaner and Co-op.  Most of the toys are 1/16 scale models by Ertl, but there are others including Spec Cast and Tru Scale.  The collection also includes several special edition tractors that were only available at toy shows.  Perhaps two of the most sought after items in the auction are two very large 1/8 scale tractors, a John Deere A and Ford 8N, autographed by Joseph Ertl.

Toys are not the only items in this collection.  The auction will also include five real vintage tractors as well.  Need a grader?  Bidders will have the chance to compete for a rare Allis Chalmers WC Speed Patrol.  Also included is what Grovenstein calls one of the finest original examples of a vintage tractor that he has ever seen.

"We are proud to offer a nearly all original John Deere 430.  It is such a wonderful tractor that screams 'agricultural heritage' because it's almost as it it came from a time capsule."

Bidding on the Southeast Georgia Collection will end beginning at 7:00 PM EST on Sunday, April 23.  Nationwide shipping is offered on all toys.  To view the entire catalog and register to bid, visit South Auction and Realty online.

#AuctionAlex  #NAAPro  #AuctionsWork

Thursday, March 23, 2017

Auctioneers Helping Auctioneers. AHA!

The peer support level among professional auctioneers is a relationship unrivaled in any other field.  It instantly creates a worldwide network that allows an opportunity to serve clients at a high level and also legitimizes the trade.  I've spent the past week on the campus of Indiana University interacting with fellow auctioneers during my second year of the three-year program, of the National Auctioneer's Association, known as the Certified Auctioneer's Institute.

We heard from some absolute giants in the auction industry.  I was also able to interact with and watch some other dynamos who just happened to be in my class.  An association president, a firefighter, successful ladies, and a legit war hero just to name a few.  It was both encouraging and humbling at the same time.  I learned something from each of them.  I learned things that challenged me and others that edified me.  I was reminded to take care of myself so that I can in turn take care of others.  Perhaps it's time for a checkup with a physician..... which would be my first visit since 1998...

The key moment for me was a presentation near the end of our time in Bloomington.  Our final speaker was clearly a man of God.  He mentioned it in passing, but his light was burning bright throughout his remarks.  He posed to us a question..... Why do we do what we do?  I enjoy helping people.  Whether that's schlepping tables at a PTO event or orchestrating an auction that solves a problem for a giant manufacturing company, I just like to help.  But why do I like to help?

I've come to learn over the last few years that God has called me to help.  After waiting for years for a supernatural tap on the shoulder with detailed plan, I finally figured out that God just wants me to help other people and do it for his glory.  Its that simple.  So I wrote it down:

"Bring glory and honor to God by helping other people"

How does that relate to business?  I help folks for free all the time, but I'm certain that God wants me to work and get paid.  As I thought about it in class and on the drive south, I came up with some ways that I can (and already do) help people through the auction business.

I help consignors by selling their property in an honest and efficient manner.
I help investors who make their livelihood by buying in hopes of appreciation.
I help re-sellers gain access to items that they sell again to make money for their family.
I help collectors fill gaps in the collections that they love.
I help the landlord of the properties I rent out of which I conduct auctions.
I help my coworkers as we build a successful business

.....and what do you know.  I make money doing that, which helps my family and then allows us to help our Cub Scout Pack, Kiwanis Club, Church and others.

I have a file full of other nuts and bolts to take home and implement, but this exercise will be the one that guides me.  Auctioneers Helping Auctioneers.  It wasn't the one I expected when I drove up to IU, but it was my AHA! moment nonetheless.

#AuctionAlex  #NAAPro  #CAI2