Tag - Auctioneer

Why an Auctioneer Will Shut Down Bidding

Auctioneer Stop

Most storage auctions follow a pretty straightforward and familiar format: You arrive, examine the unit, start bidding, and pay for the units you win. Occasionally, though, something might happen to disrupt this flow of events. In some cases, an auctioneer might shut down the bidding without awarding the unit to anyone. This can be frustrating, but understanding why it occurs can help you make sense of things. In general, there are three primary reasons why an auctioneer will shut down bidding mid-auction.

 

The first reason is that something illegal or dangerous is found in the unit. In most cases, the auctioneer has never seen the inside of the unit before cutting off the locks and opening it for bidding. If something unexpected is found inside, the bidding might be canceled. This can be a disappointment if you see something valuable inside, but it protects the auctioneer, the facility and all of the bidders from legal trouble down the line. Examples of items that could cause bidding to be shut down include human remains, drug paraphernalia, vehicles, guns or stolen items.

 

If a unit's contents are extremely valuable, a storage facility manager may have set a reserve price on the unit. If auction attendance was low or bids just just didn't reach an amount that the facility manager felt was fair for the unit, the auctioneer may pull the unit from the sale. In a case like this, you always have the option of making a higher offer to the facility manager after the auction has concluded.

 

The last reason an auctioneer might shut down bidding on a unit is less obvious. In some cases, the auctioneer might halt an auction if the bidding goes higher than expected. This happens because some storage facilities require district manager approval for units that go over a certain dollar amount. We're not exactly sure why this is; however, the most likely explanation is that the that the facility attempt to contact the tenant once more to make payment arrangements. In the event that something particularly valuable is found in the unit, causing its price to jump, the former tenant is more likely to sue the facility for that money, especially if the facility manager did not follow the lien laws to the letter. This is why some auctioneers are super cautious when it comes to pricy auctions.

 

Not every auctioneer will respond the same way to every situation. You may be accustomed to a certain way of doing things, then be surprised when a different auctioneer makes another judgment call. Try not to get too disappointed when bidding is shut down, though, regardless of what might be found inside the unit. It's better for an auction to be put on hold early on than to get caught up in a legal battle of your own once you buy the items inside.

 

Getting to Know Your Auctioneer

Getting to know

Whether you're going to a storage auction, estate auction or even a livestock auction, you'll quickly discover that individual auctioneers have very different styles and personalities. The auctioneer guides how the auction goes, and a talented auctioneer is able to manipulate the energy of a crowd to make the bidding go higher. It's a good idea to research your auctioneer before an auction so that you know what to expect, as different styles of auctioning will do better with certain strategies than others.

Many professional auctioneers have webpages where you can learn more about them. You can also research an auctioneer in advance of a sale by finding videos of them at work online or attending several of their auctions without bidding. In a small community, there may only be a few auctioneers to concern yourself with, so this research shouldn't take you too long and will pay off in the long run.

Primarily, auctioneer styles are different methods of working a crowd to get more bids. Some of these are especially prevalent during the opening stage of an auction when bidders may be reluctant and the auctioneer needs to get things rolling. Here are a few styles to be aware of:

  • Speed. Auctioneers with a large amount of stock to sell are likely to speed through an auction without giving much time between bids for people to contemplate their purchase. If you're holding off on bidding to see how high it gets, you might find the auction over before you even place a bid. On the other hand, fast auctioneers sometimes lower their starting bids to entice reluctant bidders, and you can get a good deal if you manage to land on one of these reduced-cost lots. Some auctioneers tend to be less patient with lots all the time, while others only resort to these speedy techniques when there's a lot of stuff to get through at the auction.
  • Starting bid. These auctioneers like to get the ball rolling by tossing out a figure quickly and fishing for higher bids. You'll hear a tell-tale phrase like, “Who'll give me a $10 to get us started” early in the auction with this type of auctioneer. If no one responds to this starting bid, the auctioneer will try lower numbers, but it can be hard to tell that bidding hasn't started yet when he's quickly reeling off figures. This is why it's a good idea to keep an eye on what other bidders are doing so you know for sure if a bid has been placed.
  • Gab. While some auctioneers are all business, others like to loosen up the crowd by telling anecdotes or humorous stories about the object being sold. They might also describe the item in painstaking detail and make encouraging comments when bids are placed, such as “This bidder knows the value of the item.” All of this is designed to loosen up the crowd and convince you to make more bids. It's crucial to learn how to enjoy the gab without buying into it so you don't overbid.

There are other types of strategies that may be employed by various auctioneers. It's most important to remember that the auctioneer's job is to actively sell the items, not just report on bids as they're made. By recognizing the sales strategies used by various auctioneers, you'll be best prepared for the auction and can be sure to get a good deal on the items you buy.