August 24, 2010
When sellers consign or otherwise relinquish their property, real or personal, to be sold at auction, they are giving up rights to that property. One right that is sometimes given up, but other times not, is the right to bid on that property at the auction.
Why do sellers want to bid on their own property at auction? Several possibilities exist:
- To make sure it demands a certain price, or otherwise they’ll retain ownership
- Because they have changed their mind about selling that property, and wish to keep it
- They wish to avoid a certain other person or entity from acquiring ownership of their property
- To increase the “apparent” market price of such property
For these or other reasons, sellers do wish to bid on their own property at auction, and do.
August 24, 2010
I’ve decided to start a series of posts on what I would characterize as creative, unethical, and probably illegal bid calling techniques I’ve witnessed over the years. While I believe most all auctioneers act in an ethical, moral and legal manner, there are some auctioneers acting the opposite, while bid calling, and it is quite concerning.
Standard bid calling in the United States involves the auctioneer suggesting a price a bidder might bid, the bidder bidding that amount, and then the auctioneer asking for a higher bid. Commonly, these two numbers (what is bid, and what is desired) are called the “have” and the “want.”
For example, an auctioneer might say, “I would like $100 for this item,” and as a bidder raises his card, the auctioneer would continue, “I have $100, and I’d like $125 …” and so forth.
However, way too many auctioneers (even if that was only 1) bid call in creative, unethical and probably illegal fashions. Here’s the one we’re discussing today:
The Drop Off