Types of Auctions


Flat Rate Auction ServicesCommission Charged to Seller Services Buyers Premium
Flat Fee Auction The seller pays an established fee for the Auctioneer(s), Auction Clerk(s), and Cashier(s) the number depending upon how many people it takes to handle the auction process on auction day. The flat fee for this is $4500.00 to cover the cost of one auctioneer, one auction clerk and one auction cashier for eight (8) hours. If additional staff is needed, the cost is $1000 per auctioneer, $250 per auction clerk and $250 per auction cashier. Extra time is billed at the rate of $250 an hour for the three aforementioned when time goes over eight (8) hours. This also includes the sound system, placement of your Auction on the National Auctioneers and Equine Management Services Inc web sites and a booklet that outlines how to produce a Flat Fee Auction.A non-refundable deposit of $1000 per auction date is required at time of signing contract with the auctioneer.With the Flat Auction Fee, you, your family and/or staff will be responsible for the following:Insurance--General Liability for the auction.You will handle this with the aid of the Flat Fee Auction Handbook that you will receive after booking the auction with this company. It outlines what you need to do and when, as well as who to contact for services.All placement and cost of marketing/advertising for hard print (newspapers, shoppers, special market sources such as “Antique Shopper”, on-line auction web sites, printing and distribution of auction flyers, mailers, radio ads, TV ads etc. prior to auction. Placement of “Auction Listing” on Internet auction web sites.Purchase, layout of all clerking supplies, auction tags, auction signage, directional signage and placement of signs prior to auction day.All photos and detailed inventory of merchandise to be sold, all tagging of merchandise, set-up of merchandise prior to auction day, layout of merchandise prior to auction day.Arrangements and cost for tables or wagons to support merchandise for the auction, portable potties and tents if you feel they are needed, and clean up after the auction.You will need to supply ring personal to hold up the item(s) being bid on during the auction, security staff to keep an eye out for shopper lifters and a law enforcement officer if you feel one is needed on site to protect your property.This type of Flat Fee Auction does not include a real estate auction or the real estate which may be included in the estate auction. A separate contract is required for calling the real estate part of the auction. This is due to state and federal laws involved with closing a real estate auction. However, the cost would not be that appreciably higher for the simple fact your marketing and other costs would already be covered under your Estate Sale. You could do the Real Estate part as a buyer’s premium and would then have no commission to the auctioneer for selling, as the auctioneer would be paid by the buyers’ premium. If the property does not sell, the payment to the auctioneer would be $1000 for crying the real estate part of the sale. The cost incurred for the real estate part of the auction would be for crying the auction, preparation of the bid packets to give out to interested parties prior to the auction and closing the Real Estate Sale. In the case of selling a multi-parcel Real Estate Auction, the auctioneer would furnish the Multi-Par real estate software to handle the Multi-Par auction as well as the large computer screen for all bidders to see where the bid stands in a Multi Parcel real estate auction.Commission Charged to Seller -- This type of auction is where the seller pays an agreed fee to the auction company/auctioneer to handle the auction from start to finish. There is a percentage commission worked out for the management and production the auction.A budget will be negotiated between the auction company/auctioneer and the sellers. The seller is required, in this type of auction, to prepay all marketing expense upon booking the auction.The auction company/auctioneer will cover the cost to produce the auction prior to the auction. However, once the auction is completed the auctioneer will deduct the line budget items from the proceeds of the auction after the sale/completed auction, presenting the seller with a final settlement statement and check for the net proceeds.Buyer’s Premium Auction -- Commission charged to buyers. The auction will be billed as a buyer’s premium auction with an agreed amount to be charged to the buyers. This buyer’s premium is generally somewhere around 12% to 25%. This amount goes to the auction company/auctioneer for production of the auction and is deducted from the gross proceeds of the auction.The sellers in this type of auction still need to pay up front the cost for marketing that is established in the auction budget.The auction company/auctioneer will cover the cost to produce the auction prior to the auction. However, once the auction is completed the auctioneer will deduct the line budget items from the proceeds of the auction after the sale/completed auction, presenting the seller with a final settlement statement and check for the proceeds.Buyer’s Premium and Seller pays Commission will be mixed, where the sellers agree to pay 15% to the auction company/auctioneer and charge 15% buyer’s premium, which the auction company/auctioneer receives. The percentages is negotiated at the time of signing the auction contract.
Types of auctions:Live On-Site Auction--Auction held on site at your locationLive On-Site/Live On-Line Auction--Auction is held on site and at the same time is held on line for pre-qualified bidders to bid on line on items.On-Line Only Auction Static--Items are cataloged, inventoried, pictures taken and listed on line for 5 to 15 days for “On Line Bidding Only”.