We’ve said auctioneers should treat all bidders the same — and they should. In that, we are suggesting you set your auction bidder registration requirements and then invite all bidders to register who satisfy those requirements.
For example, an auctioneer could advertise “10% and bank letter” in order to register. This would mean anyone lacking 10% and a bank letter cannot register. An auctioneer could advertise “10% and bank letter, or possessing a permanent number.” This would mean anyone without 10% and bank letter, and without a permanent number cannot register.
The important concept here is simply this: Set your auction registration requirements up-front, and stick to them. Relatedly, design your registration requirements to disqualify bidders you don’t want to bid while allowing all bidders you do want to bid.
This might be the greater challenge for auctioneers — finding the right mix and strength of requirements that provide the seller the desired bidder pool and protect the seller from unwanted bidders. It seems to us that auctioneers are bound to guide their clients as to the proper registration criteria.
As we’ve previously noted, any registration policy should be unmistakable. 10% and bank letter, or a permanent number is an acceptable policy, whereas 10% and bank letter, or “known by” the auctioneer is not an acceptable policy: https://mikebrandlyauctioneer.wordpress.com/2022/01/12/alex-lyon-case-and-the-larger-issue/.
Even more critical, inform your sellers (knowledge) of your policy, and secure their agreement (consent.) Of course, memorialize that policy in your contract with your seller/client. All sellers should know who you are inviting to “their party.” This simple matter of course helps avoid unhappy sellers, bidders, buyers, and related unwanted issues.
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 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 is 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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