Hiring An Auctioneer: The Top 4 Questions To Ask
When it’s time to sell your home or other personal property, you want to get the highest price possible with the least amount of stress.
Hiring the right auction advisor plays a large role in maximizing your return.
Not only do you want someone who is a good fit for you personally, you may also want to ask the following questions before making your decision.
Are you a licensed auctioneer?
If you’ve set up a meeting with a potential auctioneer, it’s easy to assume that their license is active and current. However, requirements vary from state to state and it’s important to confirm what may seem like the obvious.
In Ohio, for instance, in order to sell personal property (also called chattel) at auction an auctioneer must be licensed by the Ohio Department of Agriculture.
If real estate is involved, an auctioneer must also hold an Ohio real estate license.
In order to stay current, Ohio auctioneers are required to complete eight hours of continuing education courses every two years.
What is your experience?
Find an auctioneer with a track record of success. It’s okay to ask for references or prior results that align with the item(s) you are selling. Experience doesn’t always mean years in the business.
You will want to hire an auction with an in-depth knowledge of the assets you wish to auction.
What is your marketing method?
The key to any auction is bringing the right buyers at the right time to compete and drive up the value for the seller.
From the physical to the digital, marketing matters. A good auctioneer will make the best use of signage, print ads, direct mail, digital ads, social media and email marketing.
At the same time, the auctioneer should be well known in the community – especially when selling real estate. Local people tend to buy local homes, and real estate auctioneers can use their vast networks to reach all the right bidders.
You should feel confident that the auctioneer you hire will market to your needs.
The Auction Method of Marketing
The auction method of marketing is a successful strategy that uses an accelerated campaign. As the seller, you set the date, terms, time and approach to the event.
When vetting auctioneers, be sure that they thoroughly explain their methods with you.
Do you offer live and online bidding?
The auction industry has rapidly evolved in recent years, due largely in part to the global pandemic, which forced many auction houses to take their bidding online.
Post-pandemic, online bidding has remained a valuable resource due to its expansive reach and results.
When hiring an auctioneer, be sure to ask what bidding they recommend. At many real estate auctions, experienced auctioneers will advise sellers to have a live auction with online simulcast bidding to achieve the best success.
Bonus: What does it cost to have of an auction?
Auctioneers are commission based and should explain their pricing structure, as well as the services they provide. It is important to hire an auctioneer who is honest and open about their pricing.
For sellers, there are often costs associated with advertising an auction, title work, or closing fees. Those should be reviewed ahead of your sale. If you have a pre-determined budget, let your auctioneer know to stay within those parameters.
You may have heard the term “Buyer’s Premium.” If you haven’t, or need a refresher, a buyer’s premium is a pre-determined percentage added to the highest bid to determine the final purchase price. The buyer’s premium is paid by the auction buyer.
Contact us with your questions!