Heres a different take on farm auctions

[Bruce from Can.]

The post about buyers premiums got me thinking. During the last two years, in person farm auctions have nearly vanished. Auction companies prefer to hold on-line auctions now, even after the ban on public gatherings has been lifted. I dont use the services of on-line auctions, and there are many potential buyers like myself that wont participate. Therefore in the end, the sellers market shrinks.
So my thought is, why couldnt a person just hold their own personal auction? Advertise just the same as the Auction companies do, set up a sale day office. Demand identification and issue a bidding number to potential buyers. Most farmers have a pretty good idea of what their equipment is worth, and could post a reserve bid on a few bigger ticket items. But whats wrong with the owners just offering to take bids from the crowd, and drop the hammer to the highest bidder? I realize the vast majority of us folks cant just produce a auctioneers patter come sale day, but why do you need it ? Ever watched a antique or art auction on TV? Those guys are some very slow talking auctioneers, and they are auctioning off stuff worth millions!! Not just some old farm machinery worth a few thousand or few hundred dollars. So why not do it yourself? Get some family and friends together to help out on sale day, some helping with the equipment, some keeping track of who bought what, and at what price. And someone else acting as cashier. Even if you didnt get quite as much for your stuff, you still save the 10-15% that you might have paid out to a auction company. And when you think about it, if your auction sale grossed $150,000.00 in sales of tractors and equipment, the auction company rakes off 15 Grand , for maybe 3 hours of auction time .
Anyone ever done this ??

 

[Roger Tomfohrde]

Bruce what you are describing is exactly what you have when you advertise something for sale. The main reason for using an auction co. is that you do not have the hassles of selling privately( have to be present for tire kickers, no shows etc.). Also the there is a security of getting paid that a private party does not get sometimes. Another thing is some people cannot simply do it themselves. I have used online auctions, usually the extra cost is made up from all the problems that go with selling something and occasionally I have done better than expected with a auction company. I have also lost a lot too. It goes both ways. I personally use online auctions now when I need to part ways with possessions, because the buyers lately are real works and I do not want to deal with them or have them on my property. Somebody savvy enough could do it though, just not for me.

 

[Tony in SD]

Good idea but not everyone has the time, knowledge to make sales bills, website links, sales tax license, auctioneering license, bookkeeping skills among other necessary skills and things we dont even know about that are required to pull off an auction sale. Thats not to say it cant be done but IMHO the learning curve would eat up your profits. Additionally I dont think most would know were to start. If you dont believe me, watch the confusion at a charity auction some time.
I have viewed many on-line auctions, many with buyer premiums, and they seem to bring higher prices than live auctions. Personally I prefer live auctions. They were a social gathering for me. Talk to neighbors and friends, buy a hotdog from the ladys church group, etc. But I fear the days of live auctions, as with other in person social events, are numbered.

 

[Bruce from Can.]

Most farm auctions I have bought items from, when it is time to settle accounts at the end of the sale, the cheques are usually made payable to the vendor, not to the auction company. So its the vendor that is still on the hook if the cheque doesnt cash. I can understand how it could be different if you sold things through a consignment sale. And the Auction company assumes all responsibility for collecting payment.

 

[Bruce from Can.]

I would think if you were just selling your own personal items, you wouldnt need to be a licensed auctioneer. But perhaps if you were offering to preform auction services for someone else, that would be a different story. I agree, it would require some planning, and some capable help.

 

[Ken Macfarlane]

Locally there are some folks doing similar in a way, they will post the list of equipment on paper, online, and word of mouth advertising the dates the bidding is open. The equipment is numbered and you submit your information and bid, bidding is usually open for a week or two. You can call, email or visit in person to submit a bid depending on seller, they will tell you where the bidding is at.

 

[4520BW]

I actually prefer to buy on line. I don't have to waste a day at an auction I can just browse and place my max bid.

 

[Tslinger]

Well, depending on where you are, auctioneering requires a license, so you may in fact no be allowed to do it.

Otherwise, sure you could do it. There's all the headaches already mentioned. I don't think I saw anyone point out collecting/paying sales tax... That's enough of a headache for me to avoid it.

Having just gone through dealing with an estate, I know I'm very happy that I let the estate sale company have the commission. They handle the paperwork, advertising, money, setup, staffing, etc. They earned their money. I was there the whole time, so I know they did a good job. I could have certainly done it all myself, but not likely in the same timeframe, and not likely with the same success.

The second half of the estate will be going at auction. That will be an in person at the property. We've been buying from this auctioneer, and his father before him for 50+ years. He doesn't do on-line. Electronic advertising, sure, but selling is in person. He's going to earn his commission too. His family will be getting commission on some of this stuff for the second or third time most likely...

For what it takes to do a successful sale, I'd be almost as happy to just drop it off at goodwill as do it myself.

 

[SDE]

It really sucks to go to an auction and find out that the auctioneer is slow and ill prepared. I doubt that people want to go to one that doesn't even have a real auctioneer. But I do believe that a commoner can do it. After a day of talking, you might lose your voice if you aren't used to it.

At a local charity event a person was used as an auctioneer and I do believe that I could have done better, but he was used for his 'celebrity' status.

 

[ss55]

Online for sale ads through local newspapers, Facebook Market Place, Craig's List and maybe E-bay (local pickup) are other alternatives. I see a lot of older farm equipment and hay for sale on those sites.

Keep in mind that an auction may only last three hours, but the auction company could easily have over 100 hours of employees time invested in a sale if you include initial consulting and sale contract, inventory list, photos and descriptions, sale bills, answering questions from potential buyers, auction day setup, three or more extra helpers during the auction, buyer numbers, payment collection, and settlement with the seller.

An auction works well if there is an absolute deadline to get things gone.

 

[moresmoke]

I sold a loader off a tractor at a consignment auction last summer. Didnt bring as much as I would have liked but those are the breaks.

Went by the yard 3 months later and the loader was still there. Auction cos problem not mine. I had long since cashed the check.

 

[Tslinger]

(quoted from post at 11:28:24 06/02/22)
An auction works well if there is an absolute deadline to get things gone.

Even if it's a soft deadline... If you're selling, you want it sold, and move on to the next thing in life... I'm kicking myself for bringing some items to my house because I know I can get more for them in a private sale than the estate sale could/would. So now, I've got machine tools sitting around I have to take the time to advertise, and then meet with god knows who, at whatever time is convenient for them while I try to work 40 hours, and maintain properties in 3 different states.

Yea, I'll get it done, but now it's like having another job until I wrap it up...

 

[JK-NY]

I think you have to be licensed to conduct an auction here in NY. Many people use auction services that offer both online and live auctions. A friend of mine just had his late father's equipment sold that way for the estate. Also most of the larger consignment auctions are both live and online. I think it would be legal to take sealed bids to sell your own equipment , or just advertise it with a set price. Then you can always haul things to a consignment sale if you can't get them sold yourself. The advantage of using the auction method is it will get everything sold . In my friends case everything that was in good shape and newer brought good money, alot of tractors and equipment needed some work and most of that stuff sold for all it was worth, and some things were a decent deal. Even the worn out junk got a new home. And her the auction service writes the owner a check and it's their job to collect the money from the buyer. It does make sense to me to see if you can save the money that the auctioneer receives, but in today's world the auction method has the potential to get a pretty good price for good equipment, maybe enough extra to cover a lot of the auctioneer cost. One reason why you see less onsite farm auctions is there is so many less smaller farms left , at least that is the case around here.

 

[mjsnodgrass]

i use to look forward and enjoy going to auctions, whether they were at a auction yard or a farm. the auctioneer would spend a minute on item, and it was over. now with the online auctions, one has a week to decide they want the item and the prices seem to be a lot higher than they would have been at a live auction. i do buy at online auctions, but experience just isn't the same. maybe i just miss the greasy hamburgers and the people.

 

[Traditional Farmer]

A lot more to an auction than just the selling,going to need to pay some help to set up,hold up items during the sale,clerk the sale,load out,etc.Then there is advertising to pay for,collecting on bad checks,liability insurance,etc.In the end paying an auctioneer might not seem like such a bad idea.

 

[redforlife]

Local farm was just sold. Local neighbor bought it. Older lady that owned it recently deceased. Her two daughters didn't want it. Opted to sell it. Had it appraised. Offered it to the renter for appraised value, minus what a realtor's commission fees would of been. Renter bought it direct from them. No realtor involved. Perhaps a lawyer was used by both parties. I don't know on that part.

Would it of brought more if sold at public auction? I'm sure it would have.
Would it of brought more extra than the commission fees would of been? I'm sure it would of mostly covered the commission fees.
How much more over that? That I'm not sure about. Maybe a little. Not sure if it would of been enough to mess around with a realtor at 15 whatever percent.

I'd consider it on real-estate. But probably not on the rest of it. Probably wouldn't get top dollar on the good stuff. Probably get left with the junk.

I don't know why, but some people will drive a few miles to go to an auction. End up not buying the bigger items that they came for. But while there, will buy smaller items, and junk. Most of those same people, are not going to even come look at the other stuff, if it wasn't for the bigger items.

Kind of like the guy that came to buy a tractor. But it brought to much, so he bought a log chain while he was there. Take those people out of the equation, and it really hurts on the smaller items.

 

[Traditional Farmer]

Agree I like the on line auctions,no driving 75 miles,stand around for several hrs and get out bid.Plus with fuel prices now if I am going to make the trip I want to be sure I'm going to bring something home.And no dealing with the people that crowd around items to be sold that never have any intention of bidding.

 

[Keith Molden]

In the state of Ohio the owner can in fact sell his or her own property, but when a neighbor wants to put something in the sale then it's up to him to sell it. If you hold an auction for anyone else you are required to attend school, do a years apprenticeship then take a test to get an auctioneers license. You, as a newly licensed auctioneer also must have a surety bond. I didn't renew my license this year, just getting too tired and old to do the job and all the kids and grandkids are grown and have other things to do. Be prepared if you do your own auction, you can't hold a reserve on everything or the crowd will leave pretty darned quick. What you think is worth a fortune and what you think is junk will usually do good. It's hard to see your stuff going for what seems pennies on the dollar, but when the sale is over is when the total will surprise you. I would not recommend anyone selling their own belongs and I would give another auctioneer the keys and leaver on the sale day, not knowing what stuff brought till the final settlement is done. Col. W. Keith Molden

 

[Traditional Farmer]

With on line auctions the high priced items should sell first.If I buy a tractor and going to make the trip anyway I'll end up bidding on smaller items that I wouldn't bid on other wise.At on site auctions I don't bother with small items many times because of having to carry them to the truck so they don't get stolen.No thieves at on line auctions as the seller has to deliver the goods to the buyer when they come to pick up their items.

 

[paul]

I was a farm auction junkie.

Nearly everything on this farm came from an auction.

Times change, Im the poorer for it in my view. Still many around, but not like it was.

Some folk like setting their price on Craigs list or the like. Others figure they can avoid depreciation recapture taxes if they sell piece by piece.

Auction companies and folk like not having to set up and rely on the weather and the liability of 300 people wandering around a farm site......

Not the same to me. But time moves on.

Paul

 

[db4600]

Ill make a case for online auctions giving a bigger audience then the on site auctions. The recent trend has put more estate type things in front of the masses and if run correctly a diamond in the rough will be displayed individually rather than in a box of stuff. The days of getting a $2.00 box of treasures are gone.
My gripe is that the start up auctions are typically terrible at descriptions and knowledge of what theyre selling and their removal schedules dont accommodate the working man. I frequent online houses and thank the few that allow for pick up during realistic times and dont label a JD hit-n-miss as steam engine.

 

[BarnyardEngineering]

Logical fallacy. There is some loss of IN-PERSON market, but overall the market is MUCH MUCH larger.

Having the auction online attracts people from states away, where if it was local only, it is limited to people who are willing to and able to make the drive to the auction site. Mostly people who live within 2-3 hours.

Having a local auction only benefits the buyers. Most of the hate for online auctions comes from buyers who are mad that they can't buy stuff for cheap anymore.

If it wasn't more profitable auctioneers would not have online auctions.

You would have to check your local regulations regarding "auctions." Some localities require a licensed auctioneer, others don't. I know Jim NY said NY required a license, but I don't think that's the case. You need a license to sell real estate but I think anyone can be an auctioneer.

Nothing stopping you from having a "yard sale" pretty much anywhere. Might need a permit but other than that...

Thing is there's a lot more to it than just putting a few ads in a newspaper and rattling off numbers on sale day. This is where the auctioneer is equipped to deal. They take the risk for all the bad checks, non-payers, all the bookwork before during and after. At the end of the day you get a check.

However, if you think you can do better yourself, you are welcome to try.

 

[RCP]

Regarding online auctions, and how it works in our area;

To Bid you have to provide a payment method in your registration (typically credit card).

As soon as the item is knocked down the account is debited immediately.

Once you pay for item it is yours, if someone steals it before you can pick it up your are SOL.

There have been reports locally of the winning bidder showing up at the assigned place and time to pickup their items and they are missing or partially missing, the seller takes no responsibility for the missing items.

These rules and terms are stated in the sale bill, so the seller feels justified in their refusal to take responsibility for the missing items.

Because of these issues, I will not do online auctions, I prefer to deal directly with the seller, agree to a price, buy what I want and leave.

 

[BarnyardEngineering]

RCP, I don't blame you if those are the terms, but that's not my experience, which ranges across several online auction platforms.

You are invoiced and given time to arrange payment. EVERY area auctioneer I've dealt with operates like this.

The credit card is only used if you are a deadbeat non-payer, OR you authorize them to take payment from the card. Otherwise they will accept cash, check, or wire transfer.

 

[Leroy]

Anyone can be an auctioneer AFTER special school and licence and insurance.

 

[Leroy]

All in person auctions the payment is made to the auction company. And many a time you will walk around and see something you want and if they skip it and you ask they will say we did not think any body would want it so we just ignorerd it but if you want to bid we will put it up. AND FOR THE ONLINE THAT KIND OF THINGS JUST WILL GO TO THE DUMPSTER FOR NO ONE TO EVER BE ABLE TO GET IT IF THEY WANT IT.

 

[redforlife]

I get what your saying about items stolen after being sold. My area is not to bad about that. But, you don't have to go very far away, and it's a bigger concern.
When auctioneer suggests at the begining of the sale, that you keep your small items picked up after buying, you know your getting into a bad area. I've heard them say that, but kind of already knew to beware.