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 something like livestock.
- 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 something like livestock.
- 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 5% Buyers Premium- the customer now owes $105.
- Buyers Premiums are additional fees auctioneers may charge your customers. Example the customer bought $100 in merchandise- but the auctioneer charges an extra 5% Buyers Premium- the customer now owes $105.
- 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.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.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
