FAQ

Yes, there are many different types of auctions. The auctions which are predominantly conducted by Equipment Marketers & Appraisers are presented in three different categories.

1. Live auction: A live auction if often referred to as a traditional auction. This is where the merchandise is being sold at the seller’s site. There is a traditional auctioneer, bid calling or “chanting”, the bid and the ask. Members of the audience are the bidders. The bidders signify their bid to the auctioneer. When the bidding has concluded, the auctioneer “drops the hammer” or in any customary manner to say sold, and marks the item sold to the highest bidder.
2. Live Virtual Auction: Similar to the live traditional auction except all the bidding is procured over the internet. The bidding audience is not at the location of the assets. The auctioneer is heard broadcasting “like a radio show” over the bidding platform. Bids are procured by various webcast providers. The bidder clicks a bid button to signify a bid.
3. Online or Timed Auction: The traditional auctioneer is not utilized. Software is 100% in control. Bidding participants register and place all bids by using the appropriate bidding platform. Items being sold can be located anywhere.

The traditional auctioneer is well known for a rapid, methodical chant. This is a monotone delivery asking the audience to bid a certain amount. This is a skill which requires training and practice. Frequently, the auctioneering skill is passed down through family heritage.

Auctioneers have different styles of the auctioneer chant. Different auctioneer’s chants are utilized in different industries. The livestock industry is different than the automotive industry is different than the antique and collectibles industry is different than the real estate industry and is different from the personal property. The chant is developed by using filler words and asking the bid price number.

Purchases are paid according to the terms and conditions set forth.

A buyer’s premium is an additional fee charged to the buyer per item. This is typically stated as a percentage. In states which have auction license laws, the buyer’s premium must be stated.

The auction industry uses webcasters to facilitate the bidding process. There are several predominantly used companies such as Proxibid.com, Bidspotter.com, EquipmentFacts.com, Hibid.com, NextLot.com to mention a few. This is the process of broadcasting the auction and bidding process over the internet.

Auctions are used to convert assets into cash. Auctions are not the same as a retail store. Unless the terms and conditions express a return privilege, all sales are final and the goods cannot be returned. It is important for the bidder to understand the terms and conditions.

Auctioneers have different styles of the auctioneer chant. Different auctioneer’s chants are utilized in different industries. The livestock industry is different than the automotive industry is different than the antique and collectibles industry is different than the real estate industry and is different from the personal property. The chant is developed by using filler words and asking the bid price number.

Most auction companies offer packaging and shipping arrangements. Contact the auction company for details.

No. There are various auctioneering schools throughout the United States. These auctioneering schools will introduce you to the industry.

Depends. Certain states do have auctioneer license laws. Within these states, any person conducting an auction must comply with the state laws. There are exceptions.

Depends. Every state, county, municipality, have sales tax laws which govern items sold at auction. Contact the auction company or your state official for details.

In most circumstances there are no warranties or guarantees whether expressed or implied, in effect. Unless stated otherwise, the buyer accepts the item in the condition in which it was sold.

These are legitimate, conducted auctions. If you are inspired to attend, contact the auction company for details.

If your state has an auctioneer license law, all licensees will be listed. Ask for references or normal service provider references.

Depends. Certain auctions are conducted with reserve. This means the seller has the right to accept or reject the highest bid. An auction which is conducted as absolute means the items sell regardless of the price. This is also known as an unreserved auction. It is important to understand the terms and conditions.

Yes. When you procure a bid at auction it is legal and binding and you are legally bound to the terms and conditions set forth. Buyer’s remorse is not an excuse to avoid the contract.

Depends. It is important to verify you have been approved to participate. Most auction companies require qualifications to be a participant. If you were accepted to participate, you possibly waited too long to submit a bid. There are internet speed delays. If you have slow internet, you are at risk at being late to procure a bid. There are various technical reasons why your bid might not have been received or accepted. When participating on an online or live virtual auction don’t wait to submit a bid.

Yes, in all auction types you can leave absentee bids. Absentee bids are submitted in different forms depending on which style of auction is being conducted. Contact the auction company for details.

Yes. Contact the auction company for details on placing bids with a phone call.

There are several opportunities to receive auction notices. You can contact an auction company and ask to be placed on their contact list. Most auction companies will send brochures through the mail service or email contacts.

A bidding number is assigned to each unique participant. The bidding number is used to record the bid and for invoicing purposes.

A buyer’s catalog is a list of the items being sold. It is printed whether in paper or pdf form to indicate the selling order of each item.

This is a marketing devise announcing the date, time and location of the items being sold. Certain brochures will contain photographs and detailed descriptions. Due to the use of social media and digital marketing, printed brochures or sale bills are not as widely used as in previous years. You can ask to receive this marketing pieces by contacting an auction company.

Depends. Ebay has its own unique style of marketing and selling. The most noteworthy difference is eBay does not offer time extensions to the bidding process. Whereas, the other techniques allow the bidding to continue until all bids have been submitted.

Yes. The National Auctioneers Association is the primary association for auctioneers. Nearly every state has its own state association. There are other specialized auctioneer associations depending on the trade group.

You can find nearly all categories of real property and personal property sold at auction. Each category has its unique presentation, targeted buying group, and idiosyncrasies.

I recommend you research United States Treasury and Treasury Auction for a detailed explanation.

Depends. The automobile industry is unique to itself. The industry has created an auction opportunity only for licensed automobile dealers. There are automobile auctions conducted throughout the United States which are open to the public. With this style of auction you can participate as long as you adhere to the terms and conditions set forth.

Different auctioneer associations offer their members the opportunity to compete between each other members. These contests are held for fun and learning experiences. As with any trade association, being recognized by your peers is a noteworthy accomplishment. The National Auctioneers Association conducts the International Auctioneer Championship. This can be viewed over various internet platforms. This contest occurs once a year at the national convention. State association contests are normally held during the state fair.

Contact an auction company which specializes in accepting consignments.

An appraisal is used on a daily basis. Opinions of values are created daily, whether it is determining what to pay for furniture, groceries, automobiles, real estate or any item purchased. Financial institutions utilize appraisals for loan purposes.

Depends. Fees are determined by the individual appraiser based on prerequisites and facts of the project.

Appraisals are utilized by financial institutions for loan purposes; by the Internal Revenue Services to determine asset values. Used by courts of law for divorce cases, bankruptcy cases, civil lawsuits, eminent domain disputes, lease agreements, insurance purposes and state bonding. Whenever there is a need to know value.

Yes. There are many value definitions utilized within the appraisal industry. Most common is Fair Market Value, Orderly Liquidation Value, Forced Liquidation Value (Auction Value), Fair Market Value in place, Fair Market Value in place with assumed earnings, Residual Values, to mention a few.

Real property appraisers require state licenses. Personal property appraisers do not.

Real property is real estate, land and improvements. Personal property is all other assets.

USPAP is an acronym for the Uniform Standard of Professional Appraisal Practice. This is a set of standards which the Appraisal Foundation oversees. These standards are required by financial institutions for real property appraisals. The adherence to these standards by personal property appraisers is voluntary.

Yes. As with any professional trade there are numerous different appraisal associations. These associations vary from generalists to specific trades.

FAIR MARKET VALUE – An opinion expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts, as of a specific date.

FAIR MARKET VALUE – Installed – An opinion, expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts, considering market conditions for the asset being valued, independent of earnings generated by the business in which the property is or will be installed, as of a specific date.

FAIR MARKET VALUE – Removed – An opinion, expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts, considering removal of the property to another location, as of a specific date.

FAIR MARKET VALUE IN CONTINUED USE WITH AN EARNINGS ANALYSIS – An opinion, expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts, as of a specific date and supported by the earnings of the business.

FAIR MARKET VALUE IN CONTINUED USE WITH ASSUMED EARNINGS – An opinion, expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts, as of a specific date and assuming that the business earnings support the value reported, without verification.

FORCED LIQUIDATION VALUE (Auction) – An opinion of the gross amount, expressed in terms of money, that typically could be realized from a properly advertised and conducted public auction, with the seller being compelled to sell with a sense of immediacy on an as-is, where-is basis, as of a specific date.

LIQUIDATION VALUE IN PLACE – An opinion of the gross amount, expressed in terms of money that typically could be realized from a properly advertised transaction, with the seller being compelled to sell, as of a specific date, for a failed, non-operating facility, assuming that the entire facility is sold intact.

ORDERLY LIQUIDATION VALUE - An opinion of the gross amount, expressed in terms of money, that typically could be realized from a liquidation sale, given a reasonable period of time to find a purchaser (or purchasers), with the seller being compelled to sell on an as-is, where-is basis, as of a specific date.

REPLACEMENT COST NEW – The current cost of a similar new property having the nearest equivalent utility as the property being appraised, as of a specific date.

REPRODUCTION COST NEW – The cost of reproducing a new replica of a property on the basis of current prices with the same or closely similar materials, as of a specific date.

SALVAGE VALUE – An opinion of the amount, expressed in terms of money that may be expected for the whole property or a component of the whole property that is retired from service for possible use elsewhere, as of a specific date.

SCRAP VALUE – an opinion of the amount, expressed in terms of money that could be realized for the property if it were sold for its material content, not for a productive use, as of a specific date.

Depends. An appraisal assignment with 10 personal property assets requires less time than a personal property project with 5,000 items.

This term originated with real property appraisers. The appraiser literally “drives by the property” to view the property. There is no inspection of the property. Essentially this means the subject assets are not viewed or inspected. The term Non-Viewed Appraisal Report is more commonly used.

Depends on the ability of the appraiser. The analysis used combined with experience and trade knowledge will affect the appraisal report’s accuracy.

Depends. Frequently asking prices represent a starting point for negotiation. It is not uncommon to have items listed for sale which have been sold and not removed from the internet. Frequently, items are listed for sale on the internet and never sell for the advertised price. The condition of the advertised item is not always accurately represented.