Should I Have an Auction? Exploring the Pros and Cons // Midwestern Realty Group

Should I Have an Auction? Exploring the Pros and Cons

If you’re considering selling your belongings or property, you might have contemplated whether having an auction is the right choice for you. Auctions can be an exciting and efficient way to liquidate assets, but they also come with their own considerations. 

In this blog, we will delve into the world of auctions, discussing their costs, advantages, and disadvantages, as well as providing guidance on finding an auctioneer and handling shipping logistics. If you’re in Coldwater, Michigan, and looking for professional assistance with your auction needs, Midwestern Realty Group is here to help.

Bidders at an auction

What is an Auction?

An auction is a public sale in which items or property are sold to the highest bidder. It is a method of selling goods or assets quickly and efficiently, often attracting a wide range of buyers who compete for the items on offer. Auctions can take various forms, including live auctions conducted in person, online auctions held through websites, or a combination of both.

What is the Cost of an Auction?

When considering an auction, it’s important to understand the potential costs involved. Auctions typically incur fees that vary depending on several factors. These fees may include:

  • Auctioneer Fee: Auctioneers charge a commission based on the final sale price of the items. The specific percentage can vary, so it’s essential to discuss this with the auctioneer beforehand.
  • Location Fee: If the auction is held at a venue other than your property, additional costs may be associated with renting the space. This fee covers the use of the location and any setup requirements.
  • Shipping Costs: If buyers are located outside of your local area and require items to be shipped, shipping costs will need to be considered. These costs can vary based on the size, weight, and destination of the items.
  • Advertising and Promotion: Auctions require effective marketing and promotion to attract potential buyers. Some auction houses include advertising costs in their overall fees, while others may charge separately for these services.

Is an Auction Better Than a Yard/Garage/Estate Sale?

While yard sales or estate sales are commonly used methods for selling personal belongings, auctions offer unique advantages that may make them a preferable choice for certain situations. Let’s explore the pros and cons of having an auction:

Pros of Having an Auction

  • Competitive Bidding: Auctions create a sense of competition among buyers, which can lead to higher sale prices for your items.
  • Time Efficiency: Unlike yard sales or estate sales that can span many days, auctions typically take place within a few hours or days, allowing for a quick sale and immediate liquidation of assets.
  • Wide Reach: Auctions attract a diverse range of buyers, including collectors, dealers, and enthusiasts who may be willing to pay a premium for specific items. This broad market exposure can lead to better prices and faster sales.
  • Professional Expertise: Auctioneers possess in-depth knowledge of the market and understand how to maximize the value of your items. Their expertise ensures that the auction runs smoothly and efficiently.

Cons of Having an Auction

  • Fees and Commission: Auctions involve various fees, including the auctioneer’s commission, which can eat into the final sale price. It’s important to factor in these costs when considering whether an auction is the right choice for you.
  • Uncertain Sale Prices: While auctions can lead to competitive bidding and higher prices, there is no guarantee that every item will sell for its estimated value. The final price depends on the interest and willingness of the bidders.
  • Time Constraints: Auctions require some preparation, including cataloging and organizing the items for sale. It may take time to gather the necessary inventory and coordinate with the auctioneer.
An auctioneer running an auction

How Do I Find an Auctioneer?

Finding the right auctioneer is crucial to the success of your auction. Here are some steps to help you find a reputable and experienced auctioneer:

  • Research Local Auctioneers: Begin by conducting online research or asking for recommendations from friends, family, or real estate professionals in your area. Look for auctioneers who specialize in your type of items or property.
  • Check Credentials and Experience: Review the auctioneer’s credentials, such as licenses, certifications, and affiliations with professional organizations. Assess their experience in conducting auctions similar to yours.
  • Read Reviews and Testimonials: Look for feedback from previous clients to gain insights into the auctioneer’s reputation and level of customer satisfaction. Online reviews and testimonials can be helpful in this regard.
  • Interview Potential Auctioneers: Contact several auctioneers to discuss your needs and get a sense of their approach, fees, and services. Ask about their marketing strategies, auction formats, and any additional services they offer.
  • Evaluate Proposals: Compare the proposals and estimates provided by the auctioneers. Consider factors such as commission rates, advertising plans, and the level of support they offer throughout the auction process.

How Do I Ship Bought Items if Needed?

In some cases, buyers may require shipping services for the items they purchase at the auction. If you’re dealing with larger items or have buyers located outside your local area, here are some options to consider:

  • In-House Shipping: Some auction houses offer in-house shipping services, taking care of the packaging and shipping process on behalf of the buyers. This can provide a convenient and seamless experience for both buyers and sellers.
  • Third-Party Shipping Services: Alternatively, you can work with third-party shipping companies specializing in handling delicate or valuable items. These companies can ensure proper packaging, insurance, and safe delivery of the purchased goods.
  • Buyer Pickup: Depending on the size and nature of the items, you may choose to allow buyers to arrange their pickup or shipping. Clearly communicate your policies regarding pickup deadlines and any requirements for buyers to coordinate with you.

Contact Us Today for Help!

When it comes to placing your property or personal belongings under the gavel, look no further than Midwestern Realty Group. Our dedicated team of realtors also includes an experienced in-house auctioneer who can skillfully handle the sale of your items. 

Additionally, we are well-equipped to offer valuable advice on setting appropriate opening bids and reserves, ensuring you receive the best possible outcome from your auction experience. Trust Midwestern Realty to guide you through the process and maximize the success of your auction.

If you’re considering an auction and need professional assistance, Midwestern Realty Group is here to support you throughout the process. Whether you’re downsizing, settling an estate, or looking to liquidate assets, our team can provide the necessary resources and expertise to help you achieve your goals. 

Contact us today and let us assist you in making informed decisions for a seamless and profitable auction experience.