Auctions have been around forever. Citizens of the Roman Empire utilized them to exchange real estate and merchandise. They were a kind of formal bartering in those days. Since then, there have been many instances of unfortunate individuals losing their homes and life savings to the auction hammer. Today, many only know the type of sales represented by the very popular websites offering everything from soup to nuts on the auction block. For anyone attending the kind of live auctions Fort Worth TX auctioneers put on, the speed, competition and exhilaration can be exhausting and intimidating unless you know what you are doing.
Buyer’s premiums are standard for many auction houses. They tend to be about ten percent of the final high bid and are added, along with any applicable taxes, at checkout. This is something a bidder needs to fully understand when they are in the process of bidding on any property or item. Auctioneers typically promote the premium in all advertising and will often demonstrate how it is applied to the high bid prior at the beginning of any sale.
It is not unusual for financial institutions to decide that non-performing assets are better off being disposed of than remaining on their balance sheets. Real estate is a prime example of this. Sometimes the transaction takes place on the courthouse steps, and sometimes the business entity will contract with a private auction house to dispose of the problem. Auctions are great indicators of market value. They will tell all interested parties what the property is worth at that time and place.
This method of sale works especially well for personal property. It is an easy and cost effective way to dispose of excess inventory, liquidate household goods, jewelry, and offer rare and unusual items to the general public
Consignment sales allow the general public to get involved in the selling process. If you have items you want to get rid of, adding them to an existing auction might be a great idea. There will be fees to do this. There may be a flat fee to participate or the auctioneer may take the buyer’s premium for his profit. In that case, the seller may be asked to pay a percentage of the advertising expenses incurred to market the sale.
If you are thinking about bidding on a particular property or item, you should understand whether it is being sold with reserve or a minimum price. If this is the case, the seller has the right to accept or reject any high bid. Some people will not participate in a sale unless there is a published minimum price. Others understand that a good auction house will make sure their seller has realistic expectations when it comes to the bidding.
The absolute method is rarer than the reserve method. In this instance, the seller will forgo his or her right to accept the high bid or to negotiate with the high bidder. When you are the winning bidder on an item advertised absolute, you are assured that you will be the owner upon receipt of payment.
This method of purchasing real and personal property can be rewarding and productive for all parties involved. Knowing the ins and outs of the process will make you a better buyer and a more satisfied customer.
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