Kaddatz Auctioneering

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"Sale"
There's something about that word that gets people's attention. You can almost see the raised eyebrows and the dollar signs in their eyes. It means they have an opportunity to buy quality products at fair and reasonable prices. It makes them anxious and excited.

What about when you hear the word "auction"  what do you think of? Does it conjure up the same images for you? Do you think "opportunity?" Do you think "rare and unusual items?"

Well, we are here to tell you that an auction is all of the above and more. In fact, an auction is not only the best and most exciting kind of "sale" it is also the most advantageous type of sale for both buyers and sellers. And through the years, it has become the sale of "choice" by many, many people throughout the country.

Auction Myths
How many of you have been to an auction? Well, for those of you who haven't, we want to dispel a couple of myths. Auctions are a CHOICE for today's buyers and sellers. They are not a "last option." Many people think that auctions are only held when someone has died or has had their property, such as their home or car, repossessed. The reasons for auctions are as varied as the materials and possessions sold there.

Another myth is that you have to be an "experienced" auction goer to buy and sell. Everyone is welcome and the staff is great about helping first timers to understand how auctions work, how to make a bid, etc. Understanding the chant is what some people find the most intimidating. Here's a tip: listen carefully to the caller for a while and get used to his chant method. If you stick around, at the end of the talk I will give you a sample of my chant and explain to you how it works.

Auction Method of Marketing
We refer to our method of selling as "The Auction Method of Marketing."  This means much more than just making a sale. It means orchestrating a business transaction and entering into a commitment to meet the needs of both our client and our buyers. We take responsibility for the entire auction. We dedicate many long hours to prepare for and orchestrate the sale so that when that auction gavel falls, the outcome is positive for both the buyer and seller. Some of our responsibilities include:

• Rendering appraisals on merchandise.
  We get to know your property. We use our expertise to look at all the items up for bid and assess their value.
• Advertising the sale.
  It is part of our responsibility to ensure that people know about the auction, so we work hard to reach as many of them as possible through ads in the newspaper, fliers and posters and web site postings.
• Repairing and cleaning up items for display.
  We want your goods to look the best they can so we spend time fixing them, polishing them up and displaying them so they will be appealing to bidders.
• Keeping a financial record of items sold.
  We keep a log of items sold and their sale prices.
• Cleaning up the site after the sale.
  When the sale is over, we help tidy up the auction location, picking up bidder numbers, debris and other items. We want to leave it as we found it before the sale.

Background on Auction Industry
I want to give a little background on the auction industry. It has a vast history that some say dates as far back at 500 B.C.

• The term "auction" is derived from the Latin word "auctus," which means "increasing or gradual increase." Today the word as we have come to know it means a public sale of property to the highest bidder.
• Rome is said to have been the first country to license auctioneers.
• American auctions date back to the Pilgrims' arrival on America's Eastern Shores in the 1600s.
• George Washington liked to attend auctions and is said to have selected all of the furnishings for Mt. Vernon through auctions.

The history of auctions is solid and substantial. Most everything has been sold by the auction method of marketing, including livestock, antiques, real estate, household items, business equipment, artwork, collector cars, electronics  I could go on and on, but you get the picture.

The Auctioneer
Auctioneering is a solid and reputable career. Today there are an estimated 30,000 auctioneers throughout the country.

Auctioneers are educated marketing professionals versed in their field. They are detail-oriented, technology savvy and leaders in their community. They just keep getting better at their trade and that's a plus for consumers.

Many auctioneers attend auction school to learn their trade, and then become licensed in their profession.

Continuing education classes are another part of the auction business. Auctioneers attend classes to keep up on current trends and to learn new methods such as video auctioneering and live internet auctioneering. Some auctioneers take classes to earn specialized designations in fields such as real estate, personal property, agri-business, legal and more.

Referrals are a great way to find a good auctioneer, but a tried and true method is to look for auctioneers who are members of the National Auctioneers Association. NAA members are bound by a code of ethics that protects consumers against unfair auction practices, and they are privy to a wide range of educational materials and programming that help me to stay abreast of the latest developments in the industry. Just look for the NAA logo when looking for a trustworthy and professional auctioneer.

Benefits of Auctions
Now that we have given you some background on the auction industry, we want to talk with you about the advantages of using the auction method of marketing to buy and sell goods.

The best way for us to do this is to compare the auction method to other sales methods. How many of you have ever been to a garage sale or yard sale? How about a swap meet or open market sale? We're sure all of you have been to a community event or fair where there are a number of booths featuring items for sale. All of these sales are approaches people use to market and dispose of their property, and make some money.

When compared with auctions, these types of sales are not in the same ballpark. I'm not knocking these types of sales; they serve a purpose and are quite popular. But if you're looking for the best and most efficient way to sell your property, nothing compares to an auction.

Garage sales, swap meets and these other types of sales are very time-consuming for the seller (including the prep time, the time spent sitting and waiting for customers to come, etc.). Most of their marketing comes in the form of a cardboard sign stuck in the ground, and sometimes through a general ad that publicizes the event, but not always their particular items or booth. And when the sale is over, there are always a large number of items left. This is true, isn't it? How many of you have had a garage sale or yard sale, only to end up with half the items you had for sale back in your house? Or, you spend time and energy loading it all up in your car or truck and taking it down to the Goodwill store or local thrift store?

With an auction, the auctioneer and his or her staff take care of preparing items and estimating their fair market value. They professionally market the sale so that people from throughout the county, state, or even country will know about it. And they make it their job to create a competitive and entertaining atmosphere that attracts consumers to the sale. Their hand gestures, eye contact with the crowd and their rhythmic "chant" stirs buyers and brings the sale to life. Through auctions, sellers can obtain the highest possible price, dispose of all their property and receive money for their goods all in one day.

And buyers have the opportunity to "shop" for unique merchandise and pay the price they want in the spirit of competition. All of these things separate auctions from other types of sales.

If you have never been to an auction or sold goods through the auction method of marketing, you're missing out on expertise, value, excitement and fun. It's one of the oldest and most popular sales methods today.

Auctions are the most unique and valuable way of selling almost any type of personal property. Some of the most popular auctions are those that involve household items, or livestock or antiques. But auctions involve so many more possessions: automobiles, office equipment, art, machinery, industrial equipment, electronics. One very rapidly growing area is real estate. More and more people are buying and selling their homes and land by the auction method.

People are Flocking to Auctions
Auctions are one of the oldest forms of selling property; their history spans centuries. And time has only increased their popularity. A research study commissioned by the National Auctioneers Association shows that auctioneering is an industry on the rise.

Did you know that more than half of the total U.S. population has attended a live auction?

In 2004, the value of all goods and services sold at live auction in the U.S. was approximately $202.7 billion. This figure is up 6.8% over 2003 and translates into a huge number of satisfied buyers and sellers of goods.

They're entertainment at their finest. That's what most consumers say about auctions and that's the number one reason they attend. So what makes them so fun and entertaining? Some say it's the unexpected and the idea of experiencing something original.

All in all:

• 83% think auctions are an exciting way to get good deals
• 51% think they offer a great value on items
• 65% think auctions offer exciting items they wouldn't otherwise purchase
• 53% like the excitement of getting a good price

In addition, consumers find auctions fun because they're a rewarding activity for the whole family to enjoy. On average, consumers are willing to drive 1.3 hours to attend a live auction, with 75% bringing the family when they go.

The Value of Selling at Auction
So how can auctions benefit you, as a seller? Why are they the best way to sell property? Well, there are a number of reasons

• Speedy Process, Quick Turnaround.
  An auction is immediate. It happens during a set time and is completed during that time. It's quick and efficient.
• You Set the Time and Place of Your Sale.
  It's as simple as that. You work with the auction firm to schedule what works best for you.
• You Know Exactly When Your Property or Goods Will Be Sold.
  There's no wondering whether or not your property will sell. It WILL sell and it will sell during the set auction time.
• Comprehensive Marketing of Your Property.
  Part of conducting an auction is marketing it to the general public to get as many people there as possible. Auctioneers have comprehensive mailing lists they use to market their sales. They run advertisements, distribute fliers and more. They are marketing specialists. A good marketing effort can easily bring 300 to 400 people to your auction, or more!
• Buyers Come Prepared to Buy.
  Auction goers come with money in their wallets, pockets and hands and are prepared to come home with property. It's a seller's delight. For real estate auctions this is especially advantageous because buyers must qualify to buy through a deposit of a certified or cashier's check.
• No Negotiations.
  There is no haggling over price or merchandise. The auction method is quick and efficient. When people bid, they make a commitment to buy the property at that price without discussion or debate.
• No Leftovers and Little Clean Up.
  Every item at an auction goes up for bid and every item is sold. How many of you have ever had a garage sale and when you're finished, you spend hours packing up what didn't sell and looking for places to store it? With an auction, there's no worry about what to do with leftover items because there aren't any. This means very little clean up, also.
• Competitive Bidding.
  Auctions motivate buyers to perform. People get caught up in the competitiveness of the bidding and many times this drives the price of items higher. To some it's like a game, and they want to win at all costs (or hopefully for you, at high costs!) And did you know that 9 times out of 10, an auction brings in the fair market value, if not more, for any item put across the auction block?
• Exciting Atmosphere.
  There's no more exciting atmosphere than an auction. Crowds of people competing for property, combined with that lively auction chant makes for some great entertainment and fun. (Give them a sample of your chant.) It makes people feel good and makes them feel like spending.
• Auctions Work Well in Both Good and Bad Economic Times.
  People love auctions, because they love sales. Statistics show, in a good or bad economy auctions remain a steady force. When the economy is bad, the auction industry does not feel the impact: people still flock to auctions.

Hiring an Auction Company
When you make the decision to sell by auction, the most important thing you must do is hire a qualified and experienced auctioneer or auction company to handle your auction.

There are thousands of auctioneers throughout the United States who offer a wide range of auction services to consumers. So what do you look for when hiring an auctioneer or an auction firm?

First, look for someone who specializes in selling the type of property you want to sell. All auctioneers have specialty areas and most have more than one. What do they know about the products or goods you are selling?

Experience is another critical element. How long has the auctioneer or the auction company been in business? What is their reputation? Look at their web site, if they have one.

Most importantly, look for an auctioneer who is a member of the National Auctioneers Association. Most will display this logo on their business cards, signs, web sites and other business materials. The NAA is the largest professional association for auctioneers in this country, working for the betterment of the auction industry. It offers continuing education programs for auctioneers to help them keep up-to-date on the latest trends and technology for the auction industry.

The NAA also offers a wide range of designation classes to make auctioneers "specialists" in areas such as personal property appraisal, real estate, estate auctions and more.

All members of the NAA abide by a code of ethics that guarantees high standards to customers and fair business practices.

In short, this symbol means you have made the best choice when it comes to auction services!

When meeting with the auction company:

• Ask about their contract or written proposal to provide you services. Get details on what is involved.
• Find out how the sale will be marketed. The success of the sale depends a great deal on the marketing effort behind it.
• Ask about setup and cleanup of the auction.
• Ask for references. And when you get them, check them out!

We work hard for our money, but most of us spend the majority of our waking hours working. Our money pays for our homes, our land, our automobiles, insurance, clothes, food, all of our possessions and so much more. So when it comes to selling those possessions and property, the smartest thing you can do is let an auctioneer help you continue to get the value you deserve. A professional auctioneer knows what land is worth, what household items and office equipment are worth, and what personal property is worth. A professional auctioneer will manage your sale so you can get a good value from these items in which you have invested your hard earned money.

You work hard for your money, and we will work hard for your money, too.

Buying Statistics
First, let me give you a little bit of background on auctions and their popularity. Did you know that more than half of the population has attended a live auction? In 2004, the value of all goods and services sold at live auction in the U.S. was approximately $202.7 billion. This figure is up 6.8% over 2003 and translates into a huge number of satisfied buyers and sellers of goods.

These figures come from a comprehensive research study commissioned by the National Auctioneers Association. The study as a whole shows that the auction industry is on the rise. More and more consumers are seeing the advantages of buying by the auction method. In addition, consumers find auctions fun because they're a rewarding activity for the whole family to enjoy. On average, consumers are willing to drive 1.3 hours to attend a live auction, with 75% bringing the family when they go.

Here are some of the others reasons why consumers love attending auctions:

• 83% think auctions are an exciting way to get good deals
• 51% think they offer a great value on items
• 65% think auctions offer exciting items they wouldn't otherwise purchase
• 53% like the excitement of getting a good price

Advantages of Buying at Auction
So what's so special about auctions? And what's the advantage of buying at auction? Well, there are plenty of advantages.

• Speed of the Process.
  There's no doubt that an auction is the fastest sales process around. It's quick and efficient and that's what makes it attractive. We sell a multitude of items in a short time.
• You Set Your Own Price and Establish a Value.
  You are in control at an auction. You decide when to bid and how much to bid how high or low you want to go.
• Certainty of Knowing What You're Getting.
  Auctioneers deal with a wide range of merchandise. They are educated professionals who know value and price. Many have special certifications in personal property or estate appraisals.
• Opportunity for Good Value.
  With the wide array of items up for bid, there's always an opportunity to get a good deal. Sometimes it's a matter of just wearing down those other bidders.
• Fun and Excitement.
  There's no doubt that an auction is entertainment at its finest. Crowds of people competing for unique property, combined with that lively and rhythmic auction chant make for some great entertainment and fun. It's an event the whole family can enjoy.
• Honesty of the Transaction.
  Auctions are very organized and the rules are straightforward. Auctioneers who are members of the National Auctioneers Association, as I am, are bound by a code of ethics that protects consumers against unfair auction practices.

When Attending an Auction
Here are some basic tips you should know when attending an auction.

• Show Up Early.
  Arriving early will give you time to get familiar with your surroundings and, most importantly, it will give you time to preview the merchandise or items being sold. You can see the items close up and start planning for which items you will make bids.
• Make Sure You Register.
  Anyone who bids must have a bidder number and this can only be secured through registering before the auction begins.
• Be Prepared to Bid.
  Bidding is simple. But if you're doing it for the first time, it can be intimidating. Here are some general guidelines:
  1. Make sure you clearly understand the terms and conditions of the auction before making a bid (these will be included in the bidder packet you receive when you register).
  2. Listen closely to the auctioneer. The auctioneer will determine the increments of bidding. If you are having a bit of trouble understanding the auction chant, plan to listen for a few minutes and get a feel for it before you jump in and begin bidding.
  3. Be sure you make eye contact with the auctioneer when you bid.
  4. The process is fast – so if you wish to bid, quickly raise your hand or shout out loud.

Look for the NAA Logo
How do you find auctions? Well, one easy way is to look through your local newspaper, or better yet, look at the top of this screen and select "find an auction." Hundreds are listed there from all around the country. But more importantly, these are auctions of NAA members. The NAA is a national organization for auctioneers that is focused on promoting the auction method of marketing and advancing the professionalism of its members. in addition to the code of ethics that protects consumers against unfair auction practices, the NAA also focuses on the continued education of its members. They offer a wide range of educational materials and programming that help me to stay abreast of the latest developments in the industry. So remember to look for the NAA logo when looking for an auction – that way you'll be assured of experiencing an auction conducted by a trustworthy and professional auctioneer.

Common Auction Terms
If you're a frequent auction attendee, you're probably familiar with some of the jargon used at auctions. But for those of you who are new to buying at auction, you will want to get familiar with a few of the basic terms.

Now these are just a few of the more commonly used terms at auction. Be assured that if you are at an auction and you hear a term or see a process that you don't understand, the auction staff will be more than happy to help you. That's what they do!

We've just touched the tip of the iceberg when it comes to explaining auctions, and bidding and buying at auction. It's an experience unlike any other and it's a value that we cannot emphasize enough to consumers.

The auction method has advantages for every party in the event: the buyer, seller, all bidders and spectators.

Buyers often find rare items and can usually take home their purchase right away from an onsite auction, not waiting for shipping or incurring shipping costs after they have already purchased an item.

Sellers at auction can usually be assured that their property will sell on a certain day. Real estate sellers, in particular, like the fact that a sale on a specific day will end their carrying costs and they enjoy being able to set a minimum price they will accept at auction.

Bidders have a great time, even if they don't always get their chosen item. They eagerly anticipate the item coming up for auction; they think about how high they will bid; they watch the competing bidders and often talk with them afterward.

Spectators at auction enjoy an exciting event and seeing what types of items are offered in auctions these days. Attendees don't feel pressured to buy, and they can bring the whole family to see and learn about antiques, art, furniture and other items.

Auctions are a community event. People see friends and meet new people. Auctions have been a social gathering for thousands of years and continue to be the best way to determine current market price for items.

Here are a few other facts about auctions.

• A speedy process.
  There's no doubt that an auction is the fastest sales process around. It's quick and efficient and that's what makes it attractive. We sell a multitude of items in a short time.
• You Set Your Own Price and Establish a Value.
  You are in control at an auction. You decide when to bid and how much to bid - how high or low you want to go.
• Certainty of Knowing What You're Getting.
  Auctioneers deal with a wide range of merchandise. They are educated professionals who know value and price. Many have special certifications in personal property or estate appraisals.
• Fun and Excitement.
  There's no doubt that an auction is entertainment at its finest. Crowds of people competing for unique property, combined with that lively and rhythmic auction chant make for some great entertainment and fun. It's an event the whole family can enjoy.
• Honesty of the Transaction.
  Auctions are very organized and the rules are straightforward. Auctioneers who are members of the National Auctioneers Association, as I am, are bound by a code of ethics that protects consumers against unfair auction practices.

It seems that auctions have touched almost every century, every industry and every nationality – this list I gave you was just a small sample. Auctions date back so far in history, that no one really knows for sure how they started or who started them.

The First Auctions
Records handed down from ancient Greek scribes document auctions occurring as far back as 500 B.C. At that time, women were auctioned off as wives. And, in fact, it was considered illegal to allow a daughter to be "sold" outside the auction method.

A "descending" method was used for these auctions, starting with a high price and going lower until the first person to bid was the purchaser, as long as the minimum price set by the seller was met. The buyer could get a return of money if he and his new spouse did not get along well, but unlike a horse, maidens could not be "tried" before auction.

Women with special beauty were subject to the most vigorous bidding and the prices paid were high. Owners of the less attractive women had to add dowries or other monetary offers in order to make the sale.

In Rome, Italy, around the time of Christ, auctions were popular for family estates and to sell war plunder. Roman Emperor and philosopher Marcus Aurelius sold family furniture at auctions, for months, to satisfy debts.

Roman soldiers sold war plunder at auction. The licensed auctioneer, called "Magister Auctionarium," drove a spear into the ground to start the auction. Today we use an auction gavel.

Auctions Come to America
American auctions date back to the Pilgrims' arrival on America's Eastern Shores in the 1600s and continued in popularity during colonization with the sale of crops, imports, clapboard, livestock, tools, tobacco, slaves and even entire farms. Selling at auction was the fastest and most efficient means to convert assets into cash.

Fur was especially big during this time. In his book, "Going, Going, Gone!," Bellamy Partridge says "the Bible and the beaver were the mainstays of the Pilgrims, the Good Book saving their souls and the beaver paying their bills."

Initially, the furs were collected from Native Americans in the fall and winter, utilizing the "private treaty" method of exchange for "wampum" (the Native American word which meant money). The raw pelts (or hides) were transported to the closest shipping port. In the spring of each year, the auction method was used to sell the raw peltries to the European merchants who arranged the transcontinental voyage to the Old World. Once the ships returned to the port in Europe, the peltries were auctioned to manufacturers, who would process them for the retail market. The early fur trade was chiefly responsible for the settlement and development of North America.

Civil War Era
Have you ever heard an auctioneer referred to as "Colonel?" It's a fairly common practice, especially at auction schools across the country. This came about during the Civil War era, a time when auctions were beginning to flourish.

History has it that the art of auctioneering was a common practice for Civil War Colonels who regularly auctioned off the spoils of war and surplus. However, only officers of the Colonel rank could conduct them, spawning the use of the term "Colonel" by many auctioneers still today.

A short historical narrative from one of the top auction schools details this process: "As the Civil War progressed, many troop battalions made a practice of seizing property of land owners and merchants as they marched. Contraband would be collected and carried to a favorable area, then the Colonel or commanding officer would sell the goods at public sale. Even after the Civil War, military Colonels traveled to sell surplus goods and seized goods. Auctioneers followed some of the same trails and dressed similar to army Colonels to such an extent that the public began to recognize auctioneers as Colonel.'

Other Names for Auctioneers
Colonel is only one name that auctioneers have been identified with over the years. Other names include "Knights of the Hammer," and "Brothers"." The tools of these auctioneers included the Colonel style hat, a cane, bell, hammer or gavel, and a red flag. The flag, often boasting advertising, was placed above where the auctioneer would sell on the day of the auction.

Opening of Auctions Schools
Many auction schools started in the early 1900s in America. The Jones' National School of Auctioneering and Oratory was believed to be the first. It was started by auctioneer Carey M. Jones in Davenport, Iowa. For the first term, the school promoted "competent instructors teaching general merchandise, real estate and fine stock auctioneering." However, many auctioneers at that time did not believe an auctioneer could be "trained." They believed that auctioneering was a natural ability that you were born with.

Challenges for Auctioneers
Though finding goods to sell was not a problem in those days, auctioneers faced other challenges. There was no amplification system for their voices – no microphones as we know them today. So they had trouble both being heard, and keeping their voices intact.

Because travel was more difficult, and was mostly by horse and wagon, auctioneers enticed crowds by routinely offering lunch to those who came to the sale. Weather often dictated the time the auction started, as all were held outdoors.

The Great Depression
The growth of the auction industry remained until the Great Depression of 1929. Some auctioneers traveled the country to liquidate the estates of farmers whose farms had failed because of drought and bank foreclosures. The decline of the auction method of marketing followed the poor economic climate and did not rebound until after World War II.

The 1950s
Auctioneering began to make great strides after World War II. The sale of goods and real estate was booming. There was a need in certain cases to move real estate and personal property faster than the private market would allow. Thus, the modern day auction business was born. Auctioneers were now businessmen who dressed in suits and ties. They began to nurture the business and raise the reputation of auctioneers. Besides the public, auctioneers began to have links to banks, attorneys, accountants, the court system and government agencies.

The 1990s through Today
During the 1990s, technology was finding its way into the auction business. Auctioneers were using computers, fax machines, cell phones and other technology to make their businesses run faster and more smoothly. Some auctioneers began taking photographs of small auction items and projecting them onto big screens so the crowds could get a closer look at the merchandise.

Auctions burst into cyberspace in the middle of the decade. The ever flourishing eBay was launched in 1995 and would go on to become an "online leader" in the bidding business.

Many auctioneers today offer both live and online auctions to meet the needs of customers near and far. Technology allows buyers to participate in the sale without even being there.

The Future of Auctioneering
Over the years auctioneering has progressed and changed, and today it remains more popular than ever. Most everything thinkable has been sold by the auction method of marketing: antiques, household items, automobiles, land, livestock, homes, designer dresses, business equipment, and more. And thanks to professional organizations like the National Auctioneers Association, auctioneers are privy to countless educational opportunities that help them to keep up on the latest technology and learn new business traits. They network with other auctioneers to exchange ideas and to find ways to continue to meet the growing needs of the American public.

Auctioneers today are working to earn specialty designations such as Graduate Personal Property Appraiser (GPPA) , Accredited Auctioneer Real Estate (AARE), Certified Auctioneers Institute (CAI) and Certified Estate Specialist (CES). (Tell about any designations you have or classes you have taken.)
NAA auctioneers are also bound by a code of ethics that protects consumers against fraud and unfair business practices.

Auctions have been around since the beginning of time because they are a highly efficient and effective business tool – and they meet the needs of the public. But, they also are fun, entertaining and theatrical. Most people who attend an auction keep wanting to go back again and again.

If you have never been to an auction, join in and become part of history.

The following are some basic terms you might want to know when you go to an auction. Don't worry though. There isn't a test or anything. Just ask if you have questions.

Absentee Bid
This is a way that you can bid even if you cannot attend the auction in person. Check with the auction of interest to see if this is available and how they make the bids for you. Many places allow written absentee bids, phone-in bids, and even online bidding. In written absentee bids, you tell them what items to bid on and how high you will go. In phone-in bidding, you are actually on the phone in person, but you have to let them know what you want to bid on. Online bidding utilizes a bidding platform which uses the Internet to transmit your bids. These practices vary from auction to auction so be sure to ask each auction company you deal with how they do it prior to bidding.

Appraisal
The act of or process of estimating value.

"As Is"
Selling the property without warranties as to the condition and/or the fitness of the property for a particular use. Buyers are solely responsible for examining and judging the property for their own protection. Otherwise known as "As Is, Where Is" and "In its Present Condition."

Auction Block
The podium or raised platform where the auctioneer stands while conducting the auction. "Placing (an item) on the auction block" means to sell something at auction.

Auction With Reserve
An auction in which the seller or his agent reserves the right to accept or decline any and all bids. A minimum acceptable price may or may not be disclosed and the seller reserves the right to accept or decline any bid within a specified time.

Auction Without Reserve(Absolute Auction)
An auction where the property is sold to the highest qualified bidder with no limiting conditions or amount. The seller may not bid personally or through an agent. Also known as an auction without reserve.

Auctioneer
The person whom the seller engages to direct, conduct, or be responsible for a sale by auction. This person may or may not actually call or cry the auction.

Bid
A prospective buyer's indication or offer of a price he or she will pay to purchase property at auction. Bids are usually in standardized increments established by the auctioneer.

Bid Assistants
A form executed by the high bidder confirming and acknowledging the bidder's identity, the bid price and the description of the property. Also known as Memorandum.

Bid Caller
The person who actually "calls," "cries or "auctions" the property at an auction, recognizing bidders and acknowledging the highest bidder. Commonly known as the auctioneer.

Bidder Number
The number issued to each person who registers at an auction.

Bidder Package
The package of information and instructions pertaining to the property to be sold at an auction event obtained by prospective bidders at an auction. Sometimes called a bidder packet or due diligence package.

Bidder's Choice
A method of sale whereby the successful high bidder wins the right to choose a property or properties from a grouping of similar or like-kind properties. After the high bidder's selection, the property is deleted from the group, and the second round of bidding commences, with the high bidder in round two choosing a property, which is then deleted from the group and so on, until all properties are sold.

Bookkeeper or Clerk
The person who is responsible for the accounting and paperwork at an auction sale.

Buyer Premium
A percentage added on to your bid amount. Buyer premiums are used by many auction houses as a way of spreading the cost of the event with the people who benefit most from the opportunity to purchase; the buyer. It is an amount added to the high bid in addition to the high bid and payable by the buyer. This should be in the terms and advertising for the auction.

CAI
Certified Auctioneers Institute. The professional designation awarded to practicing auctioneers who meet the experiential, educational and ethical standards set by the National Auctioneers Association Education Institute.

Catalog
If an auction company makes a catalog available to you, be sure to get one. It can help you to know the description of the items sold and also how it will be sold. There may be a quantity of the commodity in each lot being sold and they may be for all one bid or so much apiece. Auction staff will be happy to explain these differences to you and your catalog will help you follow along. This way you won't miss an item that is important to you.

Commission
The fee charged to the seller by the auctioneer for providing services, usually a percentage of the gross selling price of the property established by contract (the listing agreement) prior to the auction.

Estate Sale
The sale of property left by a person at his or her death. An estate auction can involve the sale of personal and/or real property.

Hammer Price
Price established by the last bidder and acknowledged by the auctioneer before dropping the hammer or gavel.

National Auctioneers Association
An association of individual auctioneers united to promote the mutual interests of its members; formulate and maintain ethical standards for the auction profession; promote the enactment of just and reasonable laws, ordinances and regulations affecting auction selling; make the public more aware of the advantages of auction selling; and generally improve the business conditions affecting the auction profession.

On-site Auction
An auction conducted on the premises of the property being sold.

Opening Bid
The first bid offered by a bidder at an auction.

Payment Arrangements
Most auction companies ask that you pay when you are finished bidding. Some may ask for down payments when you register, as in auction of real estate. In many equipment auctions bid-assistants will ask for deposits as your purchases are increasing. It's good to ask about this prior to attending so you are prepared when you arrive. For absentee bidding you may need to give a credit car and expiration date for payment, if you are successful.

Preview
Be sure to take advantage of the preview times made available for you to look over the items being offered for sale. Many times, auction items are slightly used so you will want to know if there are any defects, such as loose or missing table legs, a vehicle that doesn't start, or glassware that has chips or cracks. While these may be acceptable to you, it may affect the amount you want to bid, so look before you bid. You will feel much more confident if you do this.

Reserve
The minimum price that a seller is willing to accept for a property to be sold at auction. Also known as the reserve price.  

Sales Tax Exemption
The need to provide a tax exemption certificate will vary from state to state in the U.S. If you are a dealer, call to ask what will be needed. If you have a dealer number for tax exemption purposes, carry it with you when you attend auctions.

Sealed Bid
A method of sale utilized where confidential bids are submitted to be opened at a predetermined place and time. Not a true auction in that it does not allow for reaction from the competitive market place.

Seller
Entity that has legal possession, (ownership) of any interests, benefits or rights inherent to the real or personal property.

Tax Sale
Public sale of property at auction by governmental authority, due to nonpayment of property taxes.

Terms and Conditions
"Terms and Conditions" are something you will likely see at every auction you attend. They will vary a according to the type of commodity being sold and the auction company. What we are showing you here are some things that are typical and that you should know. Please be sure to check the Web site or on-site glossary for each individual auction.

Types of Payments Accepted
This can range from cash only to cashier's checks or personal checks and credit/debit cards. Many times you will need a positive ID such as a driver's license or other government ID when you register for the first time.

Tie Bids
When two or more bidders bid exactly the same amount at the same time and must be resolved by the auctioneer.

If you'd like to see more auction terms, in much more (yawn) detailed and formal language, The following is a glossary of real estate auction terms developed by the National Association of Realtors Real Estate Auction Committee, and the National Auctioneers Association. While it is a real estate glossary, most of the terms apply to all types of auctions.

AARE (Accredited Auctioneer, Real Estate)
The professional designation awarded by the NAA Education Institute to qualified real estate auctioneers who meet the educational and experiential requirements of the Institute and who adhere to a strict code of ethics and standards of practice.

Absentee Bid
A procedure which allows a bidder to participate in the bidding process without being physically present. Generally, a bidder submits an offer on an item prior to the auction. Absentee bids are usually handled under an established set of guidelines by the auctioneer or his representative. The particular rules and procedures of absentee bids are unique to each auction company.

Absentee Bidder
A person (or entity) who does not attend the sale but submits, in advance, a written or oral bid that is the top price he or she will pay for a given property.

Absolute Auction
An auction where the property is sold to the highest qualified bidder with no limiting conditions or amount. The seller may not bid personally or through an agent. Also known as an auction without reserve.

Accounting of Sale
A report issued to the seller by the auctioneer detailing the financial aspects of the auction.

Agent
A person who acts for or in the place of another individual or entity by authority from them.

Appraisal
The act or process of estimating value.

Apprentice Auctioneer
An auctioneer who is in training, operating under the supervision of a licensed or experienced auctioneer.

"As Is"
Selling the property without warranties as to the condition and/or the fitness of the property for a particular use. Buyers are solely responsible for examining and judging the property for their own protection. Otherwise known as "As Is, Where Is" and "In its Present Condition."

Auction
A method of selling property in a public forum through open and competitive bidding. Also referred to as: public auction, auction sale or sale.

Auction Block
The podium or raised platform where the auctioneer stands while conducting the auction. "Placing (an item) on the auction block" means to sell something at auction.

Auction Listing Agreement
A contract executed by the auctioneer and the seller which authorizes the auctioneer to conduct the auction and sets out the terms of the agreement and the rights and responsibilities of each party.

Auction Marketer
An individual who contracts with sellers for the auction method of marketing property. In the case of real property, he or she may not actually conduct the sale but is directly responsible for all aspects of marketing the property.

Auction Marketing
The method of marketing real property utilizing the auction method of sale.

Auction Plan
The plan for pre-auction, auction day and post auction activities.

Auction Price
The price of a property obtained through the auction method of marketing.

Auction Subject to Confirmation
(See "Reserve Auction")

Auction Value
The price which a particular property brings in open competitive bidding at public auction.

Auction With Reserve
An auction in which the seller or his agent reserves the right to accept or decline any and all bids. A minimum acceptable price may or may not be disclosed and the seller reserves the right to accept or decline any bid within a specified time.

Auction Without Reserve
(See "Absolute Auction")

Auctioneer
The person whom the seller engages to direct, conduct, or be responsible for a sale by auction. This person may or may not actually call or cry the auction.

Auctioneer Subcontractor
An auctioneer hired by the principal auctioneer.

Ballroom Auction
An auction of one or more properties conducted in a meeting room facility.

Bank Letter of Credit
A letter from a bank certifying that a named person is worthy of a given level of credit. Often requested from prospective bidders or buyers who are not paying with currency at auctions.

Bid
A prospective buyer's indication or offer of a price he or she will pay to purchase property at auction. Bids are usually in standardized increments established by the auctioneer.

Bid Acknowledgment
A form executed by the high bidder confirming and acknowledging the bidder's identify, the bid price and the description of the property. Also known as Memorandum.

Bid Assistants
Individuals who are positioned throughout the attendees at the auction to assist the auctioneer, spot bidders and assist prospective bidders with information to help them in their buying decision. Also known as ringmen, bid consultants, bid spotters, or groundsmen.

Bid Caller
The person who actually "calls," "cries or "auctions" the property at an auction, recognizing bidders and acknowledging the highest bidder. Commonly known as the auctioneer.

Bid Rigging
The unlawful practice whereby two or more people agree not to bid against one another so as to deflate value.

Bidder Number
The number issued to each person who registers at an auction.

Bidder Package
The package of information and instructions pertaining to the property to be sold at an auction event obtained by prospective bidders at an auction. Sometimes called a bidder packet or due diligence package.

Bidder's Choice
A method of sale whereby the successful high bidder wins the right to choose a property or properties from a grouping of similar or like-kind properties. After the high bidder's selection, the property is deleted from the group, and the second round of bidding commences, with the high bidder in round two choosing a property, which is then deleted from the group and so on, until all properties are sold.

Bookkeeper or Clerk
The person who is responsible for the accounting and paperwork at an auction sale.

Broker Participation
An arrangement for third-party brokers to register potential bidders for properties being sold at auction for a commission paid by the owner of the property or the auction firm.

Buyer's Broker
A real estate broker who represents the buyer and, as the agent of the buyer, is normally paid for his/her services by the buyer.

Buyer's Premium
An advertised percentage of the high bid or flat fee added to the high bid to determine the total contract price to be paid by the buyer.

CAI
Certified Auctioneers Institute. The professional designation awarded to practicing auctioneers who meet the experiential, educational and ethical standards set by the Auction Marketing Institute, Inc.

Caravan Auctions
A series of on site auctions advertised through a common promotional campaign.

Carrying Charges
The costs involved in holding a property which is intended to produce income (either by sale or rent) but has not yet done so, i.e., insurance, taxes, maintenance, management.

Catalog or Brochure
A publication advertising and describing the property(ies) available for sale at public auction, often including photographs, property descriptions, and the terms and conditions of the sale.

Caveat Emptor
A Latin term meaning "let the buyer beware." A legal maxim stating that the buyer takes the risk regarding quality or condition of the property purchased, unless protected by warranty.

Clerk
The person employed by the principal auctioneer or auction firm to record what is sold and to whom and for what price.

Collusion
The unlawful practice whereby two or more people agree not to bid against one another so as to deflate value or when the auctioneer accepts a fictitious bid on behalf of the seller so as to manipulate or inflate the price of the property.

Commission
The fee charged to the seller by the auctioneer for providing services, usually a percentage of the gross selling price of the property established by contract (the listing agreement) prior to the auction.

Conditions of Sale
The legal terms that govern the conduct of an auction, including acceptable methods of payment, terms, buyer's premiums, possession, reserves and any other limiting factors of an auction. Usually included in published advertisements or announced by the auctioneer prior to the start of the auction.

Contract
An agreement between two or more persons or entities which creates or modifies a legal relationship.

Cooperating Broker
A real estate broker who registers a prospective buyer with the auction company, in accordance with the terms and conditions for that auction. The broker is paid a commission only if his prospect is the high bidder and successfully closes on the property. Also known as a participating broker.

Critical Path
Sequence of key tasks to be done by auction contractor or other designated parties on specified dates, leading to desired goals.

Dual Agency
The representation of opposing principals (buyers and seller) at the same time.

Due Diligence
The process of gathering information about the condition and legal status of assets to be sold.

Estate Sale
The sale of property left by a person at his or her death. An estate auction can involve the sale of personal and/or real property.

Graduate, Personal Property Appraiser (GPPA)
The professional designation awarded by the NAA Education Institute (formerly American Marketing Institute) to qualified property appraisers who meet the educational and experiential requirements of the Institute and who adhere to a strict code of ethics and standards of practice.

Groundsman
(See " Bid Assistants")

Hammer Price
Price established by the last bidder and acknowledged by the auctioneer before dropping the hammer or gavel.

Listing Agreement
See Auction Listing Agreement.

Listing Broker
A real estate broker who has a listing on a property and cooperates with the auction company by allowing the auction agreement to supersede his/her listing agreement.

Market Value
The highest price in terms of money which a property will bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.

Memorandum
Sometimes also referred to as a "Bidder Acknowledgment," or "Broker Acknowledgment," the memorandum is signed by those parties either on the auction floor or in the contract room.

Minimum Bid Auction
An auction in which the auctioneer will accept bids at or above a disclosed price. The minimum price is always stated in the brochure and advertisements and is announced at the auctions.

Opening Bid
The lowest acceptable amount at which the bidding must commence.

Multi-Property Auction
A group of properties offered through a common promotional campaign. The properties to be auctioned may be owned by one seller or multiple sellers.

Multi-Seller Auction
Properties owned by many sellers, offered through a common promotional campaign are auctioned in a single event.

National Auctioneers Association
An association of individual auctioneers united to promote the mutual interests of its members; formulate and maintain ethical standards for the auction profession; promote the enactment of just and reasonable laws, ordinances and regulations affecting auction selling; make the public more aware of the advantages of auction selling; and generally improve the business conditions affecting the auction profession.

National Real Estate Auction Committee
A national committee developed by the NATIONAL ASSOCIATION OF REALTORS in April, 1990 to provide education to members concerning real estate auctions, identify issues and monitor, review and analyze trends affecting the real estate auction industry. It also is charged with formulating policies for consideration by other policy-making NAR Committees, its Executive Committee and Board of Directors.

Opening Bid
The first bid offered by a bidder at an auction.

On-site Auction
An auction conducted on the premises of the property being sold.

Participating Broker
See Cooperating Broker.

Preview
Specified date and time property is available for prospective buyer viewing and audits. Also known as Open House or Inspection.

Referring Broker
A real estate broker who does not have a listing on a property, but refers the auction company to a potential seller for an auction. Usually earns a flat fee commission for referring product to an auction company.

Regroup
A process used in real estate auctions where a bidder has the opportunity to combine several parcels of land previously selected by other bidders, thereby creating one larger parcel out of several smaller parcels. This process is often used in conjunction with bidder's choice.

Reserve
The minimum price that a seller is willing to accept for a property to be sold at auction. Also known as the reserve price.

Reserve Auction
An auction in which the seller reserves the right to establish a reserve price, to accept or decline any and all bids or to withdraw the property at any time prior to the announcement of the completion of the sale by the auctioneer. See also Auction With Reserve.

Sale Manager
The person designated by the auction company who is responsible for organizing the details of an auction. Also known as project manager.

Sealed Bid
A method of sale utilized where confidential bids are submitted to be opened at a predetermined place and time. Not a true auction in that it does not allow for reaction from the competitive market place.

Seller
Entity that has legal possession, (ownership) of any interests, benefits or rights inherent to the real or personal property.

Subject to Confirmation
(See "Reserve Auction")

Tax Sale
Public sale of property at auction by governmental authority, due to nonpayment of property taxes.

Terms
The period of time that an agreement is in effect.

Terms and Condition
The printed rules of the auction and certain aspects of the Purchase & Sale Agreement that are read and/or distributed to potential bidders prior to an auction sale.

Tie Bids
When two or more bidders bid exactly the same amount at the same time and must be resolved by the auctioneer.

Trustee's Sale
A sale at auction by a trustee.

Upset Price
Commonly known as the reserve price.

Withdrawal
Failure to reach the reserve price or insufficient bidding.

If you're new to auctions, there's nothing to fear. This step by step guide will show you just how easy it is to find, scout and participate in a live auction in you.

1. Find an auction
Use our auction locator to find an auction nearby. You can even search for a specific type of auction, if you're just looking for antiques, dolls etc.

2. Preview the auction
Many auctions let you preview what is going on the auction block a few days—or even weeks—in advance. Once you've located the auction you want to attend, call the auctioneer or auction house to see if they will have a preview date.

3. Arrive early
On the day of the auction, try and get there early enough to register and get a good seat. It not only important for you to be able to see the auctioneer, but for the auctioneer to be able to see you.

4. Inspect
Carefully inspect any items you're interested in. Are they damaged? Do you see other people looking at the same items? How much competition does it look like you're up against?

5. Set a price
What are you willing to bid? You should have a number in mind, so you don't go way over your budget in the heat of the moment. Don't forget to include your total costs, like repairs, decorations, fees, and delivery charges. Use the bidder's package you were given—if you were given one—at registration.

6. Bid
Have fun! Carefully follow the auction and get a feel for who you're bidding against. And remember, the maximum bid you're willing to make is just that; a maximum. Don't jump to that number unless it's necessary. You might very well get the item you want for much less.

7. Pay
If you win, find the Bookkeeper or Clerk and take care of your bill. You can also arrange for delivery at this time.

8. Enjoy

A few suggestions to help you not only bid successfully, but to enjoy the auction experience.

Pack the items you'll need before you leave for the auction. Some suggestions:

• A small flashlight to check details on anything you're thinking about bidding on
• A pen and paper
• A value book
• Identification, checkbook, and your seller's ID if you are buying for a business.

Dress comfortably. Remember, it might be hot/cold outside but the air conditioning/heat might be working overtime inside.

Eat something before you go. There's a good chance you won't have access to food while you're there.

Save a seat before you look at the preview. Popular auctions fill up fast, and you will want to be close to the front if you are bidding. This is one time where it's good to be the teacher's pet.

Ask what types of payment are accepted, if the auction house charges a buyer's premium and inquire about hauling/delivery concerns before you bid.

Don't bid on anything you don't examine in the preview. Unless you really, really want to.

Pay attention! Make sure you know what item number is being bid on at all times, or else you might end up taking home that 1972 Formica table instead of that 1850 antique one.

Raise your paddle to bid. Once you've been acknowledged, further bids on an item can be made by a nod of the head, etc. Don't worry; sneezing won't accidentally put you into the poor house.

If you're traveling to the auction, make sure you have a way to get the items you purchase packed properly and home with you. Remember, bubble wrap is your friend.