- Personal property being considered for auction is first placed into its appropriate category. Everything from the way it is marketed to who will handle the auction sale depends on the type of property. The procedure for selling a single piece of art is markedly different from selling an entire estate.
- An appraisal is often conducted as a preliminary step, particularly in estate settlements where all parties concerned will want to have an estimated value of the property before it is placed on the auction block.
- Once the property is evaluated, the auction firm is chosen and a contract negotiated which includes auction details and commission rates. Firms specialize in a range of property auctions from commercial and residential real estate to antiques, art, collectibles, furnishings, sports and celebrity memorabilia, and more. Some auction firms work specifically on fundraising events and that process includes the solicitation of donated items for the auction event. Commissions can vary greatly and most auctioneers use a split where both buyer and seller pay a portion of his commission.
- The items are inventoried and catalogued and often an auction firm will attach estimated auction values to the property. Brochures are printed and mailed; online clients are notified of the impending event. Marketing is one of the most important pieces of the auction puzzle. If a property is not properly and fully advertised for sale, the auction can suffer from poor attendance and a lack of qualified bidders.
-
Garrett Healey, AuctioneerOn auction day, bidders are registered and given bidder numbers. The auctioneer announces the terms of sale which can include particulars such as how and when items can be paid for and removed and what are acceptable forms of payment.
Property is placed on the auction block before spectators and bidders and is offered for sale. The auctioneer solicits bids in escalating increments. When he feels he will entertain no more bids, he gives fair warning, offering the item, once, twice--sold on the third request and confirmed with a bang of a gavel. - The bidder pays for his or her items. Settlement to the property owner occurs once the sale is finished, the accountant and bookkeeping is complete, and the commissions are deducted. The exact payment date is specified in the initial contract and can vary with firm and property. Real estate settles only upon closing, usually a month after the auction date, whereas single property items can settle in a matter of days.
