I’m not sure why. I’m fairly sure it’s not a good idea. Would any auctioneer know that not one single lot in this auction wasn’t worth more than $25? Unless this property belongs to the auctioneer, it’s a horrible idea.
This upcoming Saturday we have a unique auction setting. Nothing will be sold for more than $25. The first person to bid $25 gets the item. Want that item really bad? just raise your bidder card and yell out “$25!” and the bidding stops, and you bought it. There will be single items, lots with multiple items, and some times-the-money items.
The “buy-it-now” concept is with merit. However, that maximum number should be far higher than the market value. Of course, as most auctioneers would know, “value” is an estimate — approximation — guess — and as such, how does anyone know every lot is “worth” $25 or less?
As we alluded, if the auctioneer owns this property, he or she can do anything with it … but if not, this would be a clear agency violation with anyone else’s property. Further, what message does this send to the public generally? That we’ll sell your property in this fashion too?
English-style increasing auctions typically start low and the price increases until there is nobody willing to bid higher. There’s nothing wrong with this method which has worked well for centuries. There’s quite frankly no need for any nonsensical variations for the sake of “being different.”
This is similar to a “third bid buys” auction, where the third bid placed, wins. We’re asking the same questions today we were asking when this was first published: https://mikebrandlyauctioneer.wordpress.com/2010/04/24/what-auction-where-third-bid-buys/.
In our “third bid buys” analysis, it was suggested to us there was a lack of auctioneer loyalty to the client, as he might often be the “third bid.” Likewise, could these “$25 buys” be in the auctioneer’s interest, to the detriment of his or her client?
Nevertheless, I suspect this was done to “try something novel” to get attention. Yet, it’s our view that this is more damaging to the profession than the so-called anticipated novel benefit.
Mike Brandly, Auctioneer, CAI, CAS, AARE has been an auctioneer and certified appraiser for over 30 years. His company’s auctions are located at Mike Brandly, Auctioneer, Brandly Real Estate & Auction, and Goodwill Columbus Car Auction. He serves as Distinguished Faculty at Hondros College, Executive Director of The Ohio Auction School, and an Instructor at the National Auctioneers Association’s Designation Academy and Western College of Auctioneering. He has served as faculty at the Certified Auctioneers Institute held at Indiana University and is approved by The Supreme Court of Ohio for attorney education.
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