Questions to Ask When Hiring an Auctioneer
- What area of expertise does Auction Service have?
- Hire someone that knows your products; if you are selling antiques- hire someone that specializes in this area, don't hire someone that only sells livestock or equipment.
- Hire someone that knows your products; if you are selling antiques- hire someone that specializes in this area, don't hire someone that only sells livestock or equipment.
- What geographic area do they service?
- Name recognition counts! Many auction goers will follow auctioneers; it helps to hire someone from within your geographic area.
- Name recognition counts! Many auction goers will follow auctioneers; it helps to hire someone from within your geographic area.
- Are they a Bonded/Licensed Auctioneer in your State?
- If you are paying for an auctioneer service they are required by state law to be licensed and bonded.Ask for a copy of their State Auctioneers License- you can even search online.
- If you are paying for an auctioneer service they are required by state law to be licensed and bonded.Ask for a copy of their State Auctioneers License- you can even search online.
- Do they carry proper Liability Insurance?
- Accidents happen- someone could trip and fall, there could be an automobile collision, property could be damaged.If so- who will pay for these accidents?
- Accidents happen- someone could trip and fall, there could be an automobile collision, property could be damaged.If so- who will pay for these accidents?
- Can they provide references?
- Ask for a few names of Lawyers, Banks, or other people the auctioneer has conducted sales, call those people and ask questions!
- Ask for a few names of Lawyers, Banks, or other people the auctioneer has conducted sales, call those people and ask questions!
- What is the Commission Rate?
- Commission Rates vary based on auctioneer, items to be sold, and amount of merchandise to be sold.Make sure you understand how you will be paying the auctioneer.
- Commission Rates vary based on auctioneer, items to be sold, and amount of merchandise to be sold.Make sure you understand how you will be paying the auctioneer.
- Is there going to be a Buyer’s Premium?
- Buyers Premiums are additional fees auctioneers may charge your customers. Example the customer bought $100 in merchandise- but the auctioneer charges an extra 20% Buyers Premium- the customer now owes $120.
- Buyers Premiums are additional fees auctioneers may charge your customers. Example the customer bought $100 in merchandise- but the auctioneer charges an extra 20% Buyers Premium- the customer now owes $120.
- What additional costs will the auctioneer bill to the seller?
- Sometimes the Auctioneers commission will cover all fees, other times they will list auction expenses as separate line items the seller needs to cover such as set up labor, renting a port-a-john, renting a tent or hall.This should be explained in detail in the contract.
- Sometimes the Auctioneers commission will cover all fees, other times they will list auction expenses as separate line items the seller needs to cover such as set up labor, renting a port-a-john, renting a tent or hall.This should be explained in detail in the contract.
- What happens to items that don't sell?
- Make sure you are in agreement with the "no sale" items.Some auctioneers will try to sell in 1 large lot, others will allow people to make offer, and some will throw things away.
- Make sure you are in agreement with the "no sale" items.Some auctioneers will try to sell in 1 large lot, others will allow people to make offer, and some will throw things away.
- After the sale, how long will it take to close out the auction and receive payment?
- Make sure this is included in the contract.Depending on the type of auction and the various items being sold-there may be different time frames for payment
- Make sure this is included in the contract.Depending on the type of auction and the various items being sold-there may be different time frames for payment
- Do they have a formal contract?
- Read it and ask all the questions you need to fully understand the wording- remember the auctioneer is being hired to represent your best interests
- Read it and ask all the questions you need to fully understand the wording- remember the auctioneer is being hired to represent your best interests