Thursday, July 6, 2017
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?
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!
GA Auctioneer License #4105
SC Auctioneer License #4534
GA Real Estate License #366186