Just What Is a Real Estate Auction? - by Shawn Gannaw
The current definition being used with the National Association of Auctioneers is "The firm and time defined sale of Real Property by competitive bid."
If you would like to add to this or ask me for further information please call me at Prudential at 705-735-2525 or toll free 1-877-636-5399 or e-mail shawn@LeClairRealty.com
Real Estate Auctions - by Shawn Gannaw
Buying real estate at auction is easy!
Getting Ready
The 30 days leading up to the auction is the time for you to get questions answered, attend open houses of the homes you are interested in, and determine what you can afford to spend. The actual auction is simply the time to offer the price you are willing to pay for those properties.
Auctions Go Fast!
The auction itself moves fast. First-time attendees are usually surprised to learn that the sale they are attending is over within a few minutes. In many cases, if the auction is for a single home with nothing else to be sold, the entire process lasts less than 15 minutes. So, don’t be late!
Registration
On auction day, prospective buyers register for a bidder number by showing a valid driver's license and filling out some simple information. The registration period usually begins from 30 minutes to 2 hours before the scheduled auction time. There is no fee to register at the auction and high bidders may use cash or personal checks for down payment. You can also get all last minute questions answered and tour the home one final time if you wish.
Before the Bidding Begins
The auction begins promptly at the appointed time with opening remarks summarizing, for the record, the terms of sale, the methods of bidding and any last minute changes or disclosures. These comments usually take only a few minutes, concluding with the auctioneer answering any final questions. Then the bidding is ready to begin!
The Auction Team
Assisting the auctioneer will be ring staff, to make sure anyone trying to bid is recognized and that all bids are recorded with the Auctioneer. Ring staff may also assist with questions during the auction, including asking the auctioneer to pause if necessary. It is a myth that bids can be made accidentally, by scratching one's nose and the like. If you did not intend to bid, simply inform one of the ring staff or the auctioneer and the mistake will be corrected. Any tie bids or other issues regarding who has the high bid are always resolved by the auctioneer, who has complete and final authority.
“SOLD!”
From the first bid, things move quickly, with bidders offering their bids up to the price they are willing to pay for the property. The auctioneer can and will say "sold" as soon as he or she determines that the final bid has been made. It is not necessary, nor customary, for the auctioneer to slowly announce, "Going once, going twice, etc." He or she simply decides the bidding has stopped and announces, "sold." If the auction is for a single property such as a home, this concludes the auction and the purchaser simply executes the Contract of Sale and makes the required payment.
- Good luck and good bidding!
Why You Should Hire A Professional Fundraising Auctioneer
The fall auction season is upon us, and with that comes a variety of
fundraising galas and events. We have one this weekend, one the following
weekend, and at least four in October (that I know of!). In most cases the
live auction portion of the evening is the largest money generator of the
event. This is where it pays to hire someone who knows what they're doing.
Last fall Barb, Shawn and I took a Benefit Auction Specialist course in
Cincinnati. We learned many exciting and different approaches to use for
fundraising auctions, and some very valuable tips for those holding a
charity event. I've listed some pointers below - Why Should You Hire A
Professional Auctioneer For Your Fundraiser;
Some may think that anyone with a strong voice and a sense of humour can
lead an auction. Development professionals know that a professional
auctioneer, especially one who specializes in fundraising makes a huge
difference to the success and tempo of the evening.
Using a volunteer celebrity, parent, friend of the organization or media
personality, as an auctioneer may actually be the most expensive cost of
your entire event. Event organizers may not hesitate to pay for
entertainment, food and beverages or decorator services. Hiring a
professional auctioneer is an investment that will net more revenue for
non-profit organizations.
The trained professional auctioneer can read your audience, initiate a
healthy competitive spirit, and move the bids along for maximum value. By
setting a fast pace and using a quick wit, a professional auctioneer creates
an entertaining, successful evening that increases profits where guests are
pleased to return year after year.
A professional auctioneer can help take the risk out of fundraising by
generating more profit, awareness and excitement for nonprofit
organizations.
Professional auctioneers can also provide additional services such as
pre-auction planning, consulting, training, seminars, and auction check-in
and checkout services. Some also sell auction supplies and forms,
fundraising auction software and innovative auction technology and on-line
auctions.
How do you select a professional auctioneer? It’s important to interview
potential auctioneers. Ask about experience with fundraising auctions,
services provided and fees. View their website, talk with references and if
possible attend a benefit auction that he or she is conducting.
Organizations will want to select a professional auctioneer who will fit
well.
One of the fastest growing areas of the auction business, the benefit
auction specialty requires an understanding and appreciation of non-profit
fundraising. Professional auctioneers who specialize in fundraising
auctions are distinctively skilled and committed to working with
non-profits. Benefit auctioneers are dedicated to providing specialized
fundraising auction strategies that advance the mission of the non-profit
organization.
Professional auctioneers increase non-profit income and net the highest
yields on auction items. It’s important for non-profits to provide a fun
and entertaining event where they entice guests to feel good about "paying
more than the value" for a great cause.
A Touch of Class Auctions includes 3 full time award winning professional
auctioneers, we would be pleased to discuss our fundraising auction services
and fee structure with you.
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