Frequently Asked Questions about Auctions
Why do auctions work?
One factor is auctions have a deadline. That’s right, a deadline. You are probably asking, “So what?” The deadline creates urgency. It means that if a buyer has any interest in purchasing your property or merchandise they must do so at a designated date, time and place that the sellers choose!
What are benefits of selling at auction?
The seller chooses the sale date. The costs of maintaining real estate, servicing costs of machinery, labor costs for maintenance, storage costs, insurance and other expenses related to owning assets will cease at the completion of the auction.
How can I be assured of getting the best price?
At the auction you get competing offers all at once! Each bid is simply an offer to purchase or offer to buy. The sales price is determined by competing bids that go up, not down.
Do I have to sell if I get a low price?
The answer depends upon the type of auction you have. Many auctions today are conducted under what is called “Absolute Auction”. With an Absolute Auction the seller must sell to the highest bidder. Consequently, some of the most successful auctions are Absolute Auctions. Our auction professionals will advise you whether or not an Absolute Auction is right for you. Auctions can be conducted with “Reserve”. An auction with reserve gives the seller the opportunity of refusing the high bid. Many auctions are conducted with reserve.
How Long Will It Take To Prepare For An Auction?
In most cases 4 to 8 weeks are needed.
When Will I Get My Money If I Sell At Auction?
This is determined in the auction listing contract but it will typically be 2 to 4 weeks after your auction sale.