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You can pick up a
bargain at an auction, but you need to know what you are doing.
The following information is provided to
assist in preparing for you auction experience.
General Information
Contact the
Auctioneer:
The professionals at Florabama
Auction Services are prepared to supply you with information, over the telephone (850)
626-7173 or (850) 995-7173 or via email (info@florabamaauctions.com)
concerning specific properties as well as the auction process itself. Take a
minute and contact us now.
Do Your
“Homework”:
Find out as much as you can about the
property.
Preview and
Inspect the
Property:
Preview
the items offered for sale. All the items in the sale will be available for
public viewing sometime before the auction. Take full advantage of
this opportunity. This
will allow you or your representative to see first hand what you are bidding on
and help determine value and desirability. This allows you to bid with
confidence.
Know What You
are Buying: Before
the auction do your homework. Make sure you know what you are buying. Comparison
shop before an auction to determine the appropriate value of goods offered for
sale. Decide the maximum you can afford to spend and stick to it.
Preapprove
Yourself: Increase
your comfort level by knowing your mortgage qualifications. Even before you
decide on a property to buy, you should prequalify yourself through a mortgage
broker, mortgage banker or your bank. There is never a mortgage contingency in a
real estate auction. It is best to know you can pay for the property before you
bid. Now you can be able to bid with confidence!
Attend an
Auction: Check
the local newspapers or join our mailing list for auctions in your area.
Attend and observe one or more auctions and familiarize yourself with the
process before you attend an auction as a bidder. The auction process happens
quickly, so knowing what to expect is important, when your time comes to buy.
If you can’t find an auction, call us (850) 626-7173 or (850) 995-7173.
Plan Your Bid
Strategy: Determine
your bid limit after examination of the property and all available
information. Don’t be afraid to bid early. Most other bidders will
be willing to pay just as much as you. The one who bids the number first,
wins that day.
Bring Required
Deposit: If
you are the successful high bidder at an auction, you will be required to affirm
your bid with a signature and deposit. All deposits must be in earnest
money form, i.e. cash, certified or bank check. Deposit requirements and
amounts are clearly listed in the “Terms and Conditions” section of
Florabama Auction Services advertising.
Prepare for
“Q & A”:
Prior to the start of bidding,
Florabama Auction Services auctioneers conduct a question and answer period. This is
an opportunity for registered bidders to ask any last minute questions before
the auction begins. To review our Frequently Asked Questions library click
here.
Bid
Aggressively:
Until you have won or reached your
limit. There can be only one winning bidder for the property. You
cannot buy at your price unless you BID your price.
General Information About Auctions:
·
Before bidding, find out
what methods of payment the business accepts. Make sure you read, and be certain
that you understand the terms and conditions of sale and any special conditions
that apply to certain goods.
·
Auction sales business must tell
the public before the sale starts that some of the goods are subject to a
reserve bid.
·
An employee of an auction sales
business conducting the auction is allowed to bid on items but only if he/she
intends to buy those items they have bid on.
·
An auctioneer must announce the
way in which the sale of an item is completed. It could be by the fall of a
hammer or the word “SOLD”.
·
Once the auctioneer indicates the
item is sold, you are responsible to pay for the item. Bid carefully. Normally
no refunds or exchanges are allowed at an auction. Under contract law, the sales
agreement is binding on both parties.
·
Once an unreserved item has been
offered for sale and a bid has been made, the auctioneer cannot withdraw that
item from the sale.
·
Check to see if you will be
charged a “Buyer’s Premium” as part of the total cost of the item you
purchased.
·
You have to pay taxes on most
auctioned items unless you have a valid state tax exempt certificate on file
with the auction company.
·
When you consign your goods for
sale by an auction company you are entering into a contractual agreement. The
business agrees to take your goods and sell them; you agree to pay for the
service. Fees may vary between auction sales businesses.
·
If you want to get an amount
close to the price you want for your goods you can talk to the auction sales
business about setting a reserve bid.
·
Unless your goods are offered as
reserve bid items, a minimum selling price cannot be guaranteed no matter what
you are promised. The goods must be sold to the highest bidder once bidding has
begun.
·
It is unlawful for you, a friend,
family member or your agent to bid on your goods in order to drive the price up.
·
All terms and conditions of your
consignment agreement should be in writing. Include details of pricing
arrangements; the commission rate; the administration charges for things like
storage, insurance, cleaning and repair. Ask if you will be charged a fee for
goods that do not sell. Keep a description of your consigned goods and a copy of
the contract for future reference.
·
When your goods are sold, the
auction sales business must deposit all money received into a trust account.
Within 21 days of the sale, the business must pay you the selling price less the
agreed upon costs and any amounts owed to lien holders. The business must send
you and any lien holders an itemized statement showing the amount received for
the goods.
With
this information in-hand and with some experience at auctions, you will soon be
comfortable buying and selling merchandise at auctions. GOOD
LUCK!
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Florabama Auction Services