Auction Client Options
As a McBride Auctions client, you can choose the auction client options that best suits your needs:
The most straightforward method of auction is a commission-based auction. In a Commission Auction, a percentage of the overall net proceeds is charged to the client along with a pre-negotiated maximum amount of expenses for advertising, promotion, set-up, sale and check-out labor.
Buyer’s Premium Auctions
A Buyer’s Premium Auction performs in that a fee, paid by the buyer, is simply added to the selling price of each item. For example, if a customer bids $1,000 for an item (and the Buyer’s Premium for that auction is 15%), the final cost will be $1,150.00 (the $1,000 bid plus 15%). n a Buyer’s Premium Auction, as in a Commission Auction, the seller negotiates a maximum amount of expense for advertising, promotion, set-up, sale and check-out labor.
Some clients prefer the additional comfort level of having a certain amount guaranteed for their equipment. We offer our clients a built-in safeguard against over-estimating the value of the equipment by offering Guaranteed Auctions. In a Guaranteed Auction, the auctioneer guarantees you a specific net minimum return for the sale of your equipment. After the minimum, the auctioneer will receive his expenses for the sale; all proceeds in excess of the guaranteed amount and the sale expenses will be divided, as previously negotiated, between the seller and the auctioneer. In any kind of auction the seller assumes a certain amount of risk; our guarantee greatly reduces that risk for you, shifting the greater risks to the auctioneer but also allowing the seller to participate in the potential upside.
In this scenario the auctioneer actually purchases your assets before the auction takes place. In return for the upfront sale, you would agree to allow the auctioneer cost-free use of your premises, for approximately 60 to 90 days, so that they can conduct an auction on their own behalf. Should you opt for a cash purchase instead of co-hosting an auction, you will receive a deposit (typically 10% to 20%) of the purchase price upfront, upon receipt of your signed contract. The remaining balance will be paid and delivered to you the day of the auction. In a cash purchase, you, the seller, assume no risk and have no interest in the outcome of the auction.
McBride Auctions is able to assist in your real-estate sales needs as well. Property is offered, like equipment, at auction; we can sell either to the highest bidder or subject to confirmation. If you choose to sell subject to confirmation, a minimum acceptable sale price will be established prior to the auction; if the highest bid at auction does not exceed your pre-established minimum, you have 48 hours to accept or reject it, or to make a counter-offer. If we sell the property, McBride Auctions receives a small percentage of the selling price or charges a buyer’s premium on the transaction.
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