There are a wide variety of sound systems available to auctioneers. Most current models are wireless, or provide for optional wireless operation. We have advocated auctioneers always using a microphone when bid-calling.
We recently wrote about a buyer desiring his identity and sales price kept confidential at auction. Now, we discuss here the issues involved regarding a seller keeping his identity and sales prices confidential at auction.
In our example, it appears we have two sides to this story. The auctioneer, with the permission of the seller, has publicized both the painting’s final sale price, and a hint as to who the buyer was. While the auctioneer is anxious to publicize the results to garner future business, the buyer is equally anxious to keep that information away from the public.
1. Is it standard procedure (is it okay) for workers at an auction to bid on items?
2. Is it okay for those workers to be hiding more valuable items in the junk lots?
3. Is it okay for those workers to hold items they want until the very end?
Yet, I wonder why since Christy’s and Sotheby’s introduced the buyer’s premium in 1975 in England, and soon after (1977) in the United States, that we still today see “This sold for … including the buyer’s premium?” Since that time, 1,000’s of auctioneers have started using a buyer’s premium, to augment income and offset decreasing seller commissions.
Anyone who has participated in any type of auction is probably familiar with bid increments. An increment is an increase of some amount, over some number. For example, if a 2009 Case IH Magnum 335 is selling at auction, and the auctioneer has $175,000 is asking for $177,500, then the bid increment is $2,500 ($177,500 minus $175,000).
While we submit that changing the terms and conditions day-of-auction is asking for a problem, the problem has to be weighed against the potential gain by changing the term and/or condition.
Where auctioneers are asking for even more problems is when the “contingency” in the term and/or condition is subjective, rather than objective. In our example here, “if the numbers get real high?”
At auction schools across the United States, one bid calling technique is almost universal at every school: How the auctioneer ends his bid calling for an item, and declares the item, “Sold!”
For those attending live auctions, it may seem that every auctioneer has their own technique, while actually the contrary is true. Almost all auctioneers learn to end their bid calling this way, and almost all do it exactly the same.
Auctions frequently utilize a buyer’s premium, which is a percentage of the final bid price, added to such to then calculate the final sales price. For example, a car selling at auction for $15,000 with a 10% buyer’s premium would then require the buyer to tender $15,000 + (.10*15000) = $16,500.
Quite simply, auctioneers use the word “Absolute” to attract maximum buyer interest. Yet, it is nothing less than misrepresentation when the word, “Absolute” is used in combination with some sort of minimum bid or reserve.
Collusion is an agreement, usually illegal and therefore secretive, which occurs between two or more persons to limit open competition by deceiving, misleading, or defrauding others of their legal rights, or to obtain an objective forbidden by law typically by defrauding or gaining an unfair advantage.
a sale by auction is complete when the auctioneer so announces by the fall of the hammer, announcing the item sold, and the successful bidder’s identification or in other customary manner. If it becomes immediately apparent at the close of the bidding that the auctioneer and a bid assistant or ringman have acknowledged the same bid from different bidders, the auctioneer may continue the bidding between the disputed bidders. When a bid is made while the auctioneer is in the process of completing the sale by auction, the auctioneer may continue the bidding or declare the real or personal property sold under the bid on which the hammer was falling.
An auctioneer has an auction scheduled for Saturday, May 29 at 12:00 Noon. The auctioneer goes out to the auction location on Monday, May 17 to take some pictures and finish up the inventory. The neighbor comes over and asks about the John Deere riding mower. The auctioneer says, “Would you like to offer something for it?” Legally, at this moment, the auction has commenced?
For decades, the State of Ohio did not exempt charities or other 501(c)(3) organizations from using a licensed auctioneer for their fund raising auctions. Then, Sub HB 48 was signed by Governor Strickland on June 12, 2008 and went into effect on September 12, 2008.
Primarily as a result of this Twenty-sixth Amendment to the United States Constitution, today almost all states now consider someone aged 18 to be an adult (and an age of majority), and those under the age of 18 to be minors (and an age of minority), for most acts.
As we wrote about offers prior to an auction (Offers prior to an auction,) and whether or not such an offer commenced the auction itself, or otherwise bound the auctioneer and seller to applicable law, are there times when an item, personal or real, can sell prior to auction?
A Caterpillar dealer from Harrisburg, Pennsylvania stops in to look over this particular loader about a week before the auction. The dealer informs the auctioneer that he is willing to offer the auctioneer $200,000 for the track loader — in other words, the auctioneer can “start the bid at $200,000” at the auction.