Auctioneers’ business models are largely efficient, equitable, transparent, and affordable. Property can be sold quickly and efficiently, equitably open to [all of] the public, with no hidden costs or terms, and auctioneers’ fees are generally very affordable.
However, clearly, some business models are not efficient, equitable, transparent, nor affordable where there is widespread price fixing, pervasive lack of loyalty, misrepresentation, and antiquated systems that are anything but efficient and affordable.
Auctioneers represent only sellers and otherwise assist bidders and buyers as customers. Yes, many auctioneers charge not only the seller but also buyers (buyer’s premium) which is fully disclosed and as such is quite transparent.
In fact, buyer’s premiums almost always help the seller. Still, when buyer’s premiums are charged in lieu of seller commissions, auctioneers often make less in commission, while their sellers profit more. Auctioneers are terribly transparent and affordable in this way.
Buyer’s premiums often help bidders and buyers with property availability. Bidders have grown accustomed to them, and the actual percentage amounts (as well as seller commissions) are anything but uniform in the industry. https://mikebrandlyauctioneer.wordpress.com/2023/05/04/buyers-premiums-can-help-sellers/.
Focusing on real property (real estate) auctioneers, those in that business need not worry much about the current environment, as our practices are almost the definition of efficient, equitable, transparent, and affordable and we can accurately attest to that for anyone interested.
No occupation’s entire membership acts in unison regarding these traits. Yet, it appears to me that most auctioneers understand the importance of these tenants of good behavior much better than most in some other similar occupations.
I see advertisements noting that this other membership “abides by a code of ethics, and stands for fair housing for all” as if non-members don’t? It seems to me keeping non-members out of the systems that service much of the industry is not “fair housing for all” and codes of ethics typically stand for equitable and transparent treatment of others, right?
What’s the lesson here? Obviously, it’s more important to truly act (behave) efficiently, equitably, transparently, and affordably rather than not be any of the above, but scream to your members, and the media and tell judges and juries that you are nonetheless. — providing evidence of even more misrepresentation.
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 formerly at 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 Auction 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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