Sellers often ask, “How much will I get at auction?” … for whatever.
It might be land, a tractor or a piece of jewelry.
Sellers want to know before consigning such, or maybe are just curious.
Auctioneers are quick to answer. These answers auctioneers offer sellers include:
All we can get …
Whatever it is worth …
The highest bid …
We recently explored if any of these above answers (or others) are actually true. Our conclusion is here.
I was recently sitting in a courtroom as a witness in a civil action. The plaintiff’s attorney asked me what sellers get at auction — in other words, what do buyers pay?
In answering her question, I submitted the following:
In the English-increasing method of auctioneering used almost exclusively in the United States, auctioneers actually get their sellers just one more bid than the most the second-highest bidder is willing to pay and necessarily offers.
That is, to an extent, except for when the auctioneer is bidding for the seller, or the seller makes or procures a bid. If the seller becomes the high bidder, the property doesn’t sell at all.
Further, something could procure no bids at auction — and therefore not sell, or have only one bidder [as in only one horse in our picture] (offer) and potentially sell for that offered amount.
Now, auctioneers aren’t being disingenuous; we get all we can, but that doesn’t mean the buyer has given us all he can — although that is a distinct possibility.
The marketplace and even the legal community deems the final high bid as market value: https://mikebrandlyauctioneer.wordpress.com/2015/09/07/does-an-auction-price-equal-market-value/
My answer was not what the attorney was expecting, but she conceded my definition seemed correct.
Mike Brandly, Auctioneer, CAI, AARE has been an auctioneer and certified appraiser for over 30 years. His company’s auctions are located at: Mike Brandly, Auctioneer, Keller Williams Auctions and Goodwill Columbus Car Auction. He serves as Adjunct Faculty at Hondros College of Business, Executive Director of The Ohio Auction School and Faculty at the Certified Auctioneers Institute held at Indiana University.
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