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How to Find Great Live Auctions for Resale Items

Hi, my name is Walt. I’m an auctioneer with 25 years of experience in the auction business and licensed in the state of MA. I own Quick Auction Service, a company that specializes in building and running custom auctions, I’m also the webmaster of my own site and have been on eBay for 8 years. Besides eBay, the types of auctions I run most frequently are antiques and on-site estate auctions, although I’ve run everything from business overstock auctions to charity & special event auctions.

I enjoy sharing my knowledge and stories of the auction business. My goal for article is to help folks get the absolute most out of their auction experience.

Whether your fresh out of the package or a seasoned dealer I think I can offer something in this article to help you with your auciton adventures.

There may be as many reasons to attend auctions as there are types of auctions to attend. Maybe you want to attend an auction to buy items for re-sale on eBay, or some other market. Maybe you want to furnish your home with wonderful antiques, or you want to furnish your home as inexpensively without sacrificing quality.Some folks are just looking for a fun night out. With a little perseverance all these things are possible.

There are antiques and estate auctions, auto auctions, overstock auctions, absolute and no reserve auctions, real estate auctions, specialty auctions where only one genre of items are sold, tailgate auctions, live auctions, online auctions, sealed bid auctions, silent auctions, charity and fund raising auctions and many more.

Can you really buy for pennies on the dollar at an auction? You bet! Many times I’ve seen folks buy and re-sell at the same auction on the same night for a good profit, although be advised, this should only be done after the auction is over.

There are a lot of ways to find an auction, but here are some tips on how to find and attend the best ones.

Visit the genre of shops in the area that apply to the type of auction you want to attend. IE: If your looking for a good antique auction to attend, stop in the local antiques shops and ask for what there are for good auctions in the area. Sounds obvious right? But listen to what they don’t say as well as what they do say. Oftentimes when a dealer speaks poorly about an auction he or she attends, it may be likely that they are trying to keep a good thing secret. Think for a moment, why would a dealer keep attending a lousy auction?

Newspaper ads: I personally like to find ads in the classified ad section rather than flashy display ads. Flashy ads are usually indicative of an auction that will be high priced, may have reserves, (a set price on an item), and usually an enormous crowd. While any auction can be profitable to attend, it is usually best to steer clear of the glitzy ones, at least for the beginner.

Here’s the minimum you want to find out before you go. If there is a phone number in the ad, call and ask for the terms of the sale. What forms of payment do they accept? Is it an absolute auction? An absolute auction is one that has no minimum or reserve bids on items. These are the best auctions to attend! Is there a buyers premium? A buyers premium is like a tax that everyone who makes purchases at that auction must pay above the winning bid price. Most auctions these days do charge a buyers premium, 10% is not unreasonable but I feel much more than that is greedy, and the auctioneer that charges over 10% is counting on most bidders not doing the extra math as the bids quicken in pace.

A fair auction will have ample time to inspect the merchandise, usually at least 2 or 3 hours. Find out when inspection starts and make sure to attend! Never attend an auction if you can’t make the inspection, not unless your prepared to gamble. Most auctioneers sell at a rate of about 100 items per hour, which is why they sell “as is”. They simply don’t have the time to give a detailed description of all the items. Since almost all items at auction are sold AS IS, there are sure to be some damaged, refinished, fake and incomplete items at any given auction. Beware of any auctions that offer very little or no inspection time.

Good auctions will usually have 150 to 400 lots. A lot may be one item or a group of items. The exception to this are specialty auctions, auto auctions, real estate auctions etc.

When you attend your first sale, take note of the 1/2 dozen or so dealers that buy the most often. See if you can find out about other area auctions they attend.

When you do find an excellent auction, attend it as often as possible. By frequenting good sales, you help increase the bottom line of that business. It’s difficult for many auctioneers to keep the quality of merchandise consistent, so good attendance certainly helps. And when an auctioneer gets to know you as a buyer, he/she will go out of the way to accommodate you, to keep you coming back.

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Real Estate Auctions – The New Land Rush

On a sunny afternoon in Florida, an energetic crowd gathers on the lawn of a high end luxury estate. A loud and eager banter between an auctioneer, a group of bidders and bidder assistants fills the air. For several minutes the auctioneer asks for the next highest bid and the bidders respond. Suddenly the bidders grow silent. The high bidder holds his breath in anticipation of winning the auction. The auctioneer calls for one more bid. In a loud clear voice which rolls over the audience he says, “Fair warning, last chance” the auctioneer pauses, “SOLD!” And in less than 10 minutes another multimillion dollar estate has changed owners.

Successful real estate auctions like the one above are happening all over North America and the Caribbean. Recently real estate auctions have been on the rise, the increase in popularity is partly driven by growing inventories and fading buyer confidence. Properties that were selling in weeks using traditional methods are now languishing on the market unable to attract buyers even as seller’s lower prices. Many say the real estate boom is over but savvy buyers and sellers are profiting from real estate auctions.

Real Estate Auctions Work in Up or Down Markets.

Regardless of trends or market cycles, real estate auctions provide an open and transparent process for buyers and sellers. Properly conducted real estate auctions attract ready and willing buyers and motivate them to act now.

The auction method removes the “wait and see” attitude which serves to further depress real estate values. Buyers are always concerned about overpaying. Buyers gain confidence with their purchases at real estate auctions because they can see what others are willing to pay.

When market demand is high and inventories low, real estate auctions can deliver selling prices well above what a willing seller would have accepted in a negotiated private treaty sale. In good selling climates many property owners using traditional real estate methods; negotiating with one buyer at a time, leave thousands of dollars of equity on the table. During up markets real estate auctions are the best way to establish top market price.

Evaluating Your Real Estate for Auction

Not every property or seller for that matter makes a good candidate for auction. First of all sellers must be ready to sell now and for the current market value. Also a real estate auction will not fix problems caused by a downturn in market value of your property, if you owe more than a willing buyer will pay, be prepared to come to closing with your check book.

Properties that do well in real estate auctions have a high uniqueness factor. Ask your self, “What makes my property different from most others?” Maybe you own a resort property or high end luxury home, commercial properties and land do very well at auction. Real estate auctions thrive on uniqueness. If your property is like everyone else’s, the best thing you can do is offer the most competitive price.

Most importantly sellers must be reasonable about setting a minimum bid. A seller must look at the lowest, most current comps and price below that to generate the interest and urgency necessary for a successful real estate auction. Once the auction begins and qualified bidders start competing against one another you can watch the selling price increase.

Locate a Qualified Real Estate Auctioneer

Start by checking with the National Auctioneers Association, the best real estate auctioneers belong to this organization. These real estate auctioneers are well trained and adhere to a standard of practice and a code of ethics. Many attend the annual International Auctioneers Conference where the latest techniques and innovations in the real estate auction industry are presented.

Find out if the company you are interviewing is a full time real estate auction firm. Many real estate agents are getting auction licenses yet have no experience with the auction method of marketing. Conducting a successful real estate auction is nothing like (private treaty) traditional real estate sales. Go with a real estate auction pro.

You’re probably better of with an auction house that specializes in real estate auctions. There are many qualified auctioneers who have generations of experience selling personal property; furniture, dishes, lawn equipment and the occasional rare painting. Selling real estate at auction is a complex matter that should only be attempted by full time experienced real estate auction professionals.

Commissions and fees may vary, sellers must pay all marketing expenses up front and buyers typically pay 10% of the sales price to the auctioneer of which a share goes to participating real estate agents.

Types of Real Estate Auctions

Auctions are effective because they create a seller’s market. Professionally conducted real estate auctions create urgency, a reason to buy today and competition for the property. Terms and conditions of sale are established ahead of the auction. Real estate auctions will follow one of these three approaches:

Absolute Auction

The property is sold to the highest bidder regardless of price- using this process often returns the highest sale price.

Minimum Bid Auction

Seller agrees to sell at or above a published minimum bid price – this method is useful for internet auctions.

Seller Confirmation or Reserve Auction

With a reserve auction, the seller “reserves” the right to accept or decline any bids usually within 48 hours of the auction. Reserve auctions are used when there is a lien on the property from a lender or a court ordered sale with a minimum selling price.

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All Grown Up – Why Your Small Business Needs A Web Solution, Not A Website

Raise your hand if you have a website for your small business. Now keep it raised if it is generating a significant volume of prospects or sales. Not holding your hand up anymore? You are not alone.Just a few years ago, small companies flocked to the web in droves, rushing to post their first website, anxious at the prospect of low-cost instant exposure. The web was going to be the great equalizer, putting small business on par with the big brand names, dangling the promise of visitors flocking to a company’s site to purchase its wares or partake in its services. Sound familiar? Unfortunately, for most small businesses and organizations, the promise fell short and company sales did not skyrocket from an unending march of site visitors.So, what happened? For one, the web quickly became ultra competitive. Millions of sites sprang up in every business category making it virtually impossible to be found in the search engines. What little bit of traffic the businesses may have enjoyed when the site was first launched began to dry up. Also, as the web evolved to become a more interactive user experience, it became more technologically complex and many small business websites did not keep up. The other part of the problem was in the approach; not understanding that just putting together a website, even a pretty one, and finding some faceless company offering cheap web hosting services is not likely to make you the next great success story. A large hurdle that many small business owners and managers face is the tendency to compartmentalize the web into a few oversimplified tasks: grab a cheap domain name, find a budget small business website design and development person, look for some impossibly low-priced website hosting, and then expect their website to magically appear on page one of Google. Unfortunately, this ends up being a waste of time and money.A Solutions-Based Approach with Professional GuidanceTo create an effective web presence requires a solutions-based approach with clear ideas about what you want to accomplish and who the audience is you are targeting. The right elements have to be present; a well orchestrated website design with cohesive branding, solid technical acumen, clearly defined objectives for the organization, reliable small business web hosting services and some method of marketing your site and tracking the results. The web is constantly evolving and search engine competition is fierce. Being successful on the web requires consistently evaluating the site’s effectiveness based on your objectives, understanding the latest technologies and trends, having a dynamic website marketing plan and constantly fine tuning.While you don’t have to spend a fortune to create real value on the web, you should also be realistic. Understand that being successful will require an investment that you should plan for and a clear vision of how your website fits into the goals and objectives of the organization. If you don’t have the experience and technical resources in-house, working with a professional web solutions provider, preferably one specializing in small business web design and development can provide great benefits. A good starting point in the process is to have an understanding of the core elements that are part of a successful website strategy and how they fit together.The Elements of a Web Solution1) Domain names – Choosing the right domain name is an important branding decision which impacts how your organization is perceived and also how it is found in the search engines. Purchasing from a cheap bulk registrar or choosing can spell trouble.2) Website Design & Development Services – Find a provider that specializes in small business web design and development. An organization that offers a solutions-based approach can assist your company in doing thorough needs analysis and in designing all of the elements to work well together. First impressions count!3) E-mail Management – E-mail is a key communication tool for your business. The right system will help you maximize communications within the company, on the road and with your customers.4) Social Media – Social media such as blogging, Podcasting and other web 2.0 tools can greatly enhance customer communications. Your web services company should be able to help you evaluate how social media tools can best benefit your web presence and business objects.5) Small Business Website Hosting Services – All web hosting is NOT created equal. There are many nuances and technical consideration involved with hosting solutions. It is best to stay away from budget hosting companies. Look for a managed hosting provider who can help you select the right plan for your web solution goals, get your website up and running and support you as it grows and evolves.6) Website Maintenance – How will your site be maintained and updated? Having both small business web development and managed web site hosting as a package is immensely helpful for maximizing web server resources, identifying problems and keeping the site maintained and updated.7) E-Commerce – Will you be actually selling on your site or using it for lead generation or information dissemination? If you are selling products, who will create and maintain your product database. How will transactions be handled? What about web server requirements? Working with a professional can help ensure you make the right choices for your e-commerce site.8) Business Process Interaction (database development, customer relationship management, integration with your business management systems) – A website needs to be more than just an ad on the Internet to be effective as a business tool. There are many ways the web can be used to improve your business processes and integrate with your existing systems such as accounting or contact management.9) Website Marketing – How will people find you on the web? Will you optimize your site for organic search or employ paid marketing techniques or a combination? What directories should you list your site in? Search engine marketing has evolved to be a complex specialty. It’s critical that you understand the tools available for driving traffic to your site and if needed, know how to evaluate and engage a web marketing specialist.10) Website Analytics and Conversion – Having a great site isn’t enough if your visitors aren’t doing what you intended; buying something, contacting your company or using your site for an information source. Does your site have usability issues? What kind of reporting will you use to track site visitors? What do you need to know and do to convert your visitors into action-takers?It’s a Process and a Work in ProgressWhile there is certainly a lot to think about, creating the best possible website solution for your business doesn’t have to be overwhelming. Your website can and should be a work in progress, evolving as your business grows. Because most small businesses do not have an internal IT staff to handle the technical elements of web development and planning, working with a web solutions provider that specializes in small business website hosting services and small business web design and development is a good start. Such an organization can help you identify your goals, manage the technical aspects of your site and guide you in your marketing efforts. They can also help you work within your budget to develop a plan that combines all the elements into a cohesive whole for creating and maintaining a successful web presence.Conclusion The web has grown up to be a terrific marketing medium for small businesses and organizations. Done right, it can be the most cost effective and powerful marketing and communication tool in your arsenal. The promise is still there. However, to truly leverage the power of the web, it is important to take a good, hard look at the website you currently have or the one you are thinking about creating. The elements of a successful web presence: small business web hosting, website design and development and web marketing are only the framework for a well thought-out web solution designed to reach your customers and truly benefit your business.

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