What to Expect When Having an Auction

Never had an auction before?

We have put together a list if things for you to expect when having an auction. Some of these things will differ slightly depending on the type of auction you are having. Make sure if you have any questions you address them with the auctioneer as soon as possible to ensure a smooth profitable auction.

Before Your Auction – Schedule of Procedures

Your auctioneer will provide you with a schedule prior to the day of the auction. This will tell you when certain items will be sold and the order of the auction.

Auction Advertising

Advertising will be published in local publications, on social media, our website and signs will be posted on the property in advance of the auction and directional signs at intersections nearby the day of the auction.

Meeting with the Auctioneer

You will meet with your auctioneer to discuss the details of the auction in advance. At that time, they will go through all the details about your auction to confirm important items such as:

  • Reserve price
  • How many bidders anticipated
  • When you will communicate with the auctioneer the day of the auction
  • Bidding increments
  • What happens if your reserve is not met
  • Pre-Auction Open House

The auctioneer will have the home and/or property open for potential bidders to view one final time before the auction. If a home, there may be a couple open houses in the weeks prior to the auction. The auctioneer will have all the property paperwork and flyers along with auction rules displayed for potential bidders to review.

During the Auction – Announcements

The auctioneer will provide an introduction of themselves and the company they work for.

In accordance with auction rules and laws, the auctioneer must state these items prior to the auction commencing. After all the legal statements, the auctioneer will then describe the property and its features before beginning the bidding.

Bidding

The auctioneer will call for an opening bid from the crowd. If no opening bid is given the auctioneer may commence the auction with a vendor bid.

The auctioneer will control the flow of the bidding until one of two options are met:

1. Your reserve is met – once this is met the auctioneer will state the property is “on the market.” After the highest bid is made, the auctioneer will drop their hammer and the property is declared sold. After the hammer falls no additional bids are accepted.

2. Your reserve is not met – if your reserve is not met, the auctioneer may “pass in” the property. If this occurs, by law you must enter into private discussions with the highest bidder. If no deal can be reached with the highest bidder, the auctioneer can then approach other bidders to try to negotiate a sale.

What Happens After the Auction

Once the bidding is over, one of two things will happen:
1. Your property did not sell – at that point you may discuss your options with the agent. Possibly listing the property at an agreed upon price.

2. Your property sold – if your reserve has been met your property is sold. The auctioneer will have the purchaser sign the purchase contract and pay the deposit.

If you have additional questions about hosting an auction, contact us here.

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