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Auction Q & A
Q: What is a Buyer's Premium?
A: A Buyer's Premium is an additional charge paid by the purchaser of an item. It is often around 10%
of the winning bid. For example, if a buyer purchases an item for $100.00, the total charge to the buyer would be $110.00. This amount, together with whatever the seller is being charged, makes up the auctioneer's commission.
Q: Do I have to pay sales tax?
A: Usually there is no sales tax charged at an auction,
but there are some exceptions. For example, when we sell inventory owned by a business, buyers must pay the same sales tax
that they would have paid at that business.
Q: How do I pay for my items?
A: AAA Auction accepts cash, in-state checks, Visa and Mastercard.
Q: What is an absentee bid and do you accept them?
A: An absentee bid is a bid placed on an item before the auction starts. The bid is usually guaranteed with a credit card. The auctioneer will then bid for you as much as is necessary,
up to your maximum bid, for you to win the item. For example, if your maximum bid is $100 and the bidding is progressing in $10 increments, and if the last bid was $50, the auctioneer will put you in for $60. If no one else bids, you will win the item for $60.
There is usually a $5 fee if
you are the winning bidder with an absentee bid.
Q: What type of auctions does AAA Auction and Realty do?
A: AAA Auction and Realty is a full-service auction company. In addition to doing traditional on-site auctions, our owner, Col. Tony Elfelt, is a certified benefit auction specialist
who is often asked to conduct benefit auctions.
AAA Auction and Realty is also a real estate brokerage, and we represent buyers and sellers in real estate transactions either using the auction method, or traditional real estate sales techniques.
Q: Why should I sell at auction?
A: Auctions are the best way to sell items for their true market
value. The excitement of the auction experience often helps bring even higher prices for the items sold. Auctions are also predictable because the seller can determine the day his merchandise will sell as opposed to placing an ad in the paper and hoping the telephone rings.
Also, all sales are "As Is," so returns are not a problem.
Q: What is a reserve auction?
A: A reserve auction is an auction where the seller has the final choice to either accept or reject the highest bid. Common places to find reserves
are at auctions of real estate or of other valuable items.
Q: What is an absolute auction?
A: In an absolute auction, an item sells for the highest bid
regardless of the amount.
Q: Where do your auctions take place?
A: We are a full service auction company. That means that if your facility or residence is large enough to conduct an auction, we will conduct it at your location. If you would rather not have the auction at your location or if your property is not large enough to support an auction, we will conduct the auction at another facility. Common facilities to use for auctions are county fairgrounds, VFW's, American Legions and other halls.
Q: What if I have only a few things that I would like to sell?
A: If you have only a few things to sell, you are welcome to consign them to us for sale at one of our auctions. It is very common to combine items from more than one seller in order to have a good amount of items to
sell. AAA Auction reserves the right to refuse any items that have no value or that are inconsistent with the other items being sold.
Q: How much would it cost me to have you do an auction for me?
A: Our rates are very reasonable and competitive. However, they vary depending on the type of auction we are doing. In order for us to answer this question, it would be best for you to call us to let us know the type and amount of items that you would like to have us sell. We would then be able to discuss our commission with you.
Q: How soon do I get paid after the auction?
A: We will have a check for you within seven days of the auction.
Q: What do I have to do to get ready for the auction?
A: Most of our clients set up their items for their auctions themselves. We will show you how to group your items and how to display them. Most people have friends and family help with this job because it can be a lot of work. If you are unable to set
up your items for the auction, we will hire people to do that for you and bill you for that service.
Q: What happens to the items that don't sell?
A: Usually everything sells at an auction. For example, if something does not get a bid by itself, we simply add other items to it until a bid is made. However, if there are things left over after an auction that the purchaser fails to remove from the property, it is the seller's responsibility to remove them. Once again, AAA Auction can provide help for that if our seller cannot do it himself or herself.
Q: Who does the advertising?
A: AAA Auction does all of the advertising for the auction. This will include newspapers and various internet web sites. It also may
include direct mail. Although the auctioneer initially pays for the advertising, the seller reimburses the auctioneer for all of those expenses out of the sale proceeds. These expenses are discussed with our clients when the auction contract is signed.
