How Auctions Work

by Chad Shahan

I remember feeling a little bit intimidated the first time I attended a live auction. I couldn’t understand what the auctioneer was saying. There was no catalog, whatever sold next they just picked out of the pile, it was unorganized and hard to follow. We strive to make our auctions; well-organized, fun and entertaining. Auctions are a great way to buy and sell all kinds of merchandise. Also, a much better option than garage or estate sales where proximity to the location might limit your attendance of buyers. As professional auctioneers, we have an obligation to sellers, to bring them the most money we can for there merchandise. The best prices, sometimes record prices are achieved through the competitive auction process. It only takes two bidders that want the same item to drive the price past what an estate sale might bring.

The Auction Process…

It starts weeks ahead of time, with a call from someone needing to sell their merchandise. Merchandise can include: Real Estate, Personal Property, Vehicles, Motorcycles, Household & Homestead, Storage, Vintage & Antique Collectables, Business Inventory, Commercial Equipment, Farm Equipment, Recreational Vehicles, Heavy Equipment and occasionally Firearms. We accept quality consignments of these things. Yep! Auction Service receives a small commission based upon the final sold price.

Inventory...

Each item is labeled, photographed and inventoried using auction software. Depending upon the size of the estate consignment, Yep! Auction Service will either; add the merchandise to an upcoming auction or schedule an onsite live auction at the location where the items are currently stored.

Marketing...

We notify our newsletter subscribers, social media platforms, including market to the local and surrounding areas. The information sent out includes; Date/Time of Auction, Location of Auction, Date/Time of Inspection & Pickup, Terms of Auction, Gallery of the items(lots).

The Auction Inspection...

This is a time scheduled before the auction that allows buyers to come and inspect/preview the merchandise. The reason for this is because everything is sold As-Is Where-Is. This means that there are no guarantees to the accuracy of description, authenticity or condition of the items being sold. Unlike Ebay, you get to come out and inspect the items condition, no surprises. This preview is also a great time to register as a bidder for the auction. You will need to sign the auction terms agreement; please have Identification ready to receive a bid card at this time. Keep the bid card; you need it to bid in the Live Auction.

The Live Auction...

The items/lots are sold to the highest bidder one at a time and in a predefined order. The inventory system that we use makes the whole auction process faster; we can sell about 100 items an hour. The first item is presented; the items description and lot # are read aloud. The auctioneer asks for an opening-bid amount and then works down until someone opens the bidding. Example: “Who would start the bidding at $100,50, 25, 10, 5?….5 is bid, now 10?, 10 is bid, now 15?” In this example $5 started the bidding and the increment stayed at $5. The auctioneer will ask for the next bid amount in increments. However, increments can be other amounts like: $2.50, $5, $10, $25, $100, etc. Bidders raise their bid card to bid. Put your bid card up only when you want to bid and when you are the high bidder so that your bid card # may be read by the auctioneer. The auctioneer says, “sold out”, “amount”,”bidder #”, the clerk logs this information and moves onto the next item.

Timed Online Auctions...

This auction has a designated time that bidding begins and a time that the first lot begins to close. The time between can be days or weeks leading up to the auction closing, but most of the bidding happens within the last five minutes. Bids that are cast within the last minute of an auction item closing usually extend the auction by a pre-specified amount of time. This insurers fair bidding, best prices achieved and convenience for bidders.

Things To Remember...

It’s okay to ask if you are the high bidder; sometimes it gets confusing.

The items you were high bidder on will need to be paid for before they are released to you. You may pick up merchandise after it is paid for unless it interferes with the auction. Credit Card, Cash, Pre-Authorized Checks, Pre-Authorized Wire Transfer are acceptable payment methods. It is the buyers responsibility to read the Terms of Auction for every Auction, as the terms do change.

We offer catalogs for bidder’s convenience. They can take a break and come back and join the action when the next item that they are interested in bidding on comes up, because everything is sold in the order on the catalog.

A good auctioneer is entertaining, efficient, easy to understand and includes everybody in the sale.

There is usually a buyer’s fee called a "premium" added to the auction sale price and applicable sales tax. Yep! Auction service makes no guarantee of the accuracy of merchandise descriptions, you are responsible for inspecting all merchandise before sale.

Thanks For Exploring Yep! Auction Service.
Call or email if we can help at:
360-281-2726
mailbox@yepauction.com
Chad and Allison Shahan