Hiring an Auctioneer

Well now here's a subject near and dear to me which I've yet to cover.

I love auctioneering because to me, it's the most democratic type of economy available. And saying that auctions are an actual economy is not a typo or an altruistic statement. I really mean they are their own economy.

Within an auction, there is: Currency, both monetary and non-monetary. The trust of fellow dealers is a form of currency that has value, as well as the integrity of an estate and the crew handling it. Marketing, promotion, etc.

See, all of these things hadn't any monetary value until the shape of the auction took place around them, designating them an abstract form of currency.

Then an economy needs markets right? There are enough flea markets and antique shops in this world to keep an endless supply of auctioneers hopping. And there are not really an awful lot of auctioneers.

Mass interest: An economy needs that, no? I mean if a good portion of the world isn't interested in playing ball, then an economy will collapse.

Let's face it, one man's trash has been another man's treasure since the first cave man threw out a Saber toothed Tiger bone, and Grog fashioned it into jewelry for his cave girl. So we know enough people are "willing to play ball".

Now what you may ask does this have to do with hiring an auctioneer. Well, everything.

You see, whether your hiring an auctioneer to MC a charity event, or you want to liquidate Grandmother's estate, your asking someone to do a very big and important job.

Now many of you reading may know that, but a common belief is that the only thing an auctioneer needs to do well is talk fast, and that's just not true.

In the case of an estate when your looking to hire an auctioneer, your asking someone to be responsible for a good portion, if not all the entire accumulated wealth of a deceased loved one.

Maybe your in need of a fund raising auction and the event is going to be 50% or more of your organization's yearly budget.

Not every auction is this important, but many are. Ask yourself how important your auction is to you. Then decide if you need a rubber jawed junk dealer, or if you want someone that understands and respects your situation.

An auctioneer of this caliber can sum up any job in your first meeting and give you a very clear cut idea which direction you should go in.

That last sentence would be the meat and potatoes of this article then. What you most likely want to know is how to tell if you have an auctioneer that is right for you and will treat you fair.

Important things you have to decide when choosing an auctioneer.

Is this auctioneer available in the date range your working with? Although a good auctioneer can get a sale ready in a few weeks, auctions are often booked months in advance, some, as much as a year. Therefore, he may be busy in the date you need him. Let them know on the phone the time frame your looking at, it may save you and the auctioneer a wasted meeting.

Do they do the kind of auction you want to run? Most auctioneers are flexible, but each has his/her forte. Mine is antiques/collectibles and estates. Some auctioneers do only heavy equipment etc. You get the idea, this can also be found out over the phone.

When your calling an auction hall, if you reach anyone other than the auctioneer, ask when they can be reached. Unlike a lot of other businesses, there are not very many questions an auctioneer's help can answer for you with much accuracy.

So you've decided to meet. If it's a big job and the auctioneer is late for the first meeting without a ROCK SOLID excuse, don't hire them. While this may sound overly harsh it is not at all.

The most important talent an auctioneer needs to have is a sense of timing, it is the most crucial element to reading a crowd of buyers and reading a crowd of buyers is the auctioneers most important job.

I've seen people auction off antiques that know nothing about antiques, yet they can get more money than the guy from the antiques road show because they know how to work a crowd to just the right tune. Of course it's better to have an auctioneer that knows the merchandise and can read a crowd. But I'll take a good sense of timing over anything. If they can't make it on time to the very first meeting, what does it say for their sense of timing? Late auctioneer = bad auctioneer.

* So you've met, now the auctioneer is looking over the estate. How is he/she handling the items, with respect or nonchalance?

* Does he seem to know what he is talking about?

* Ask a lot of questions such as:

* Does she/he purchase estates?

* How many auctions has she/he called. (Be careful of anyone whop has called less than 25 auctions.) In most cases you want a veteran.

* References?

* Is there an auction they have coming up that you could attend?

* Ask how much certain things are worth, the key here is to look for someone that knows ranges, but probably won't commit to firm prices. Anyone that starts guaranteeing they can get you this for that, and that for this, is either full of bull, or doesn't have that much experience yet.

This is a good sign of someone that may be overanxious to get work and will say what they think you want to hear. Any smart auctioneer is going to answer your value questions by saying something like: "I'm going to do the best I can because the more you make, the more I make".

* Commission fee ranges: A reputable auctioneers percentage will vary, but should fall with-in 25 to 35% to you, with a 10% buyers premium. The rule of thumb is, the pricier the estate, the less commission charged. Please realize there are many commission fee factors such as, who is responsible for the clean-out of the property, who pays for the ads, rents the tent if any, is it at an auction hall or on site?

A red flag should go up if the commission fee offered seems too low. Ask yourself why, and how might someone in this position try to make up for that lost revenue. There are sharks in every business, but they usually give off signs if you know what to look for. I don't want to give the impression that Auctioneers are any less honest than people in any other profession, but they are often in a very powerful position with your estate, so know that.

* When and how does the estate get paid, the standard is around 14 business days.

* Ask every question you can think of, it's an important test.

* If it seems like I'm asking you to throw a lot at this person you've just met, that's because I am. They can handle it if they're a professional.

* A good auctioneer deals with up to hundreds of people at the same time, trying to sell an entire room full of people something, two to four hundred times a night! If they can't answer more than a few nagging questions without getting rattled, I'd look for another auctioneer if possible.

If you've found someone to work with, make sure they are willing to give you a clear, easy to understand contract. Never, hire an auctioneer without a contract,

* I welcome any questions you may have, but please use the comment section to do so.

* If you would like to have me look at your estate/auction situation,

Click here to email AuctionWally or give me a call at 508-667-6078.

I'm also for hire as an auction/estate consultant.

To see a closely related article of mine titled, "How to Liquidate an Estate,

click here.

Thanks and attend an auction this week!

AW