Real Estate Auctions: What to Know

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It is becoming more popular for home buyers to look towards real estate auctions for their big purchase. However, before taking on the auction block, there are a few key things to understand in order to achieve success.

The different types of real estate auctions

Tips for Buying a Home at an AuctionBefore attending an auction, it’s important to understand what type you’re attending. There are two types to take note of: a Sheriff’s auction and a private company auction. The process is similar, but different in location of event and who it’s held by.

Sheriff’s auction

This auction is a legal proceeding and is held by a government official in the county that the property is located. This type is utilized when lenders are foreclosing on a property, but are not the original owners of the home. A Sheriff’s auction is usually announced to the public in the “public notice” section of your local newspaper and is held on the courthouse steps or within the lobby area.

Private company auctions

This type of auction is held by a private company. These events usually offer more information about the property for sale prior to the auction. Companies will normally provide photos on their website and also encourage potential buyers to take a walk-through of the property. The rules of each auction vary based on the company, so be sure to learn the terms and conditions in advance!

These real estate auctions are announced through the company’s website that is holding them, which allows enough time to ask questions and schedule a walk-through inspection.

Practice due diligence

It would be beneficial to learn as much as you can about the real estate before you attend the auction. If you’re allowed to, take advantage of the opportunity to inspect the property beforehand. Additionally, have an attorney conduct a title search and identify any liens that exist so that you can ensure that there are no other existing owners of the property or undocumented costs that could become your responsibility.

Know your financial capabilities

Before attending a real estate auction, it’s vital to decide on the highest price you are willing to pay for the property. Most county foreclosures require a deposit of 5-10% of the final bid. Other private company auctions will ask for the full amount as soon as the auction concludes. As mentioned early, learn the rules of the auction you’re attending or don’t risk the bid!

Each of our realtors at Smith & Co. are native to Northwest Oklahoma and are homeowners themselves, making them great assets to help in your real estate search! Call us at 580-254-3975 today to learn more about our various real estate listings  and feel free to explore all of our upcoming land and real estate auctions here!

Bidder’s Choice: What Does it Mean?

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Definition of Bidders ChoiceWhether you’re a seasoned veteran or just a beginner, everyone can agree that the extensive vocabulary you hear at an auction can be a little overwhelming. Between the statement, the hammer and the rhythmic chant, there’s a lot to take in, but it’s “bidder’s choice” that quite possibly could be the most essential term you should know.

Bidder’s choice defined

According to the National Auctioneers Association, bidder’s choice is the method of sale whereby the highest bidder earns the right to choose an asset or assets from a group of similar items. After the highest bidder has made their selection, a new round of bidding begins with the highest bidder of that round choosing their asset or assets. This process goes on until all assets are sold.

So what does bidder’s choice really mean?

Bidder’s choice is a grouping strategy that both benefit the auctioneer and the buyers. Let’s take, for example, a grouping of power tools. Depending on the value of those separate items, the auctioneer may start the first round with one tool that’s worth more, or they may leave the parameters open and say any tool on the floor is available for buying.

The bidder with the highest unchallenged bid has the right to choose as many tools at that price as they wish. After they’ve made their selection, another round of bidding commences with the same rules applied. This process continues until only a few items are left or the bids are getting very low. Towards the end, the auctioneer may choose to group the rest of the tools together.

What’s the point of bidder’s choice?

This complex process gives buyers the chance to claim specific assets they were set out to buy, as well as give other buyers a second chance to bid on the other items during the later rounds. This is a fair way to give auction goers a good deal as well as some healthy competition. Also, auctioning these items separately is more profitable for the auctioneer than selling the items as a whole, usually losing them money in the end.

Smith & Co. Auction & Realty holds 60-80 live auctions a year for you to test your bidder’s choice at and get exactly what you’re looking for. Be sure to check out our list of upcoming auctions and best of luck!

How to Possibly Get a Bargain at an Auction

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How to Possibly Get a Bargain at an AuctionIf you love shopping for the best deals, then you’re sure to enjoy attending an auction! There are all kinds of great deals to be had, from large properties to small trinkets. So what can you do to find the best bargains?

Attend an auction preview

Auction previews give you an opportunity to take a close like at the items ahead of the auction. Since items purchased at auctions are rarely covered by any warranty, it’s your job to make sure the purchase is worth your while. During a preview you can closely inspect the items, so make sure you test as many features as possible. Consider taking photos of the items as well so you can make sure they are in the same condition on the day of the auction.

Do your research

Make sure you know the market value of the item to avoid overbidding. A simple Internet search will provide information about product value, devaluation, repair costs, and the current value that will help you decide what to bid.

Know your budget

It’s easy to get lost in the moment during an auction, and once you make a bid you can’t back out. Set your budget ahead of time and stick to it to avoid getting stuck with an item you really can’t afford. Also be sure to know what methods of payment are accepted so you come prepared.

Whether you are searching for a bargain at a land auction or qualified potential buyers for your home, the experts at Smith & Co. Auction & Realty will make sure that you are in the best position possible to find your desired results. Contact us today for more information!

Common Auction Mistakes

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Advertising on social media

In this day and age, you may be tempted to post photos and information about your items on social media ahead of your auction. But this can put the security of your items at risk, as people will be better able to find out where they are located. This can be an especially sensitive issue if you are auctioning off farmland or equipment. And if you post the price, you may end up turning away potential buyers or cut into earning potential.

Special deals for friends and family

You may feel obligated to let friends and family have first pick on your items or even offer them a cheaper deal. But doing so could limit the buyers’ pool that may have attended the auction. And by selling the items for a cheap price, you may inadvertently devalue the rest of the assets.

Co-owner agreements

If you share ownership of the items, be sure to come to an agreement about how things will be handled. Decide who will be in charge of accepting bids and making other important decisions.  Will it be a team? One person? Being clear about everyone’s responsibilities upfront will help you avoid potential conflicts that could hurt your chances of having a successful auction experience.

At Smith & Co. Auction & Realty, we know how to spot potential problems with auctions and we know how to avoid the mistakes that sometimes arise.  Let us handle your next auction. We have valuable experience serving Northwest Oklahoma for over 20 years. Call us today at 580-254-3975 with any questions you may have!

Auctioneer Terms You’ll Want to Learn

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At auctions, you can expect auctioneers talking a mile a minute and buyers waving their paddles in the air. So how are people able to keep up enough to actually make a bid? Knowing common auctioneer terms can be the key to success.Auctioneer Terms You’ll Want to Know

Auction chant                                

Known as “the chant,” auctioneers’ fast-talking styles date back to the 1920s. The chant consists of three parts: the statement (“I’m bid ten dollars”), the suggestion (“Ten dollars, twenty dollars”), and the question (“Do I hear 30?”).

Filler words

Filler words are any words used between bids to keep the rhythm of the chant going. Each auctioneer uses words differently to create their own unique style. The use of filler words also gives buyers a brief moment to think about their bids.

Provenance

If you watch shows like Antiques Roadshow, you may be familiar with the term “provenance.” Provenance refers to the item’s ownership history, tracing back to its creation. A long and well documented provenance can increase the value of an object up for auction.

Hammer price

The hammer price is the final, winning bid. The word “hammer” is a reference to the bang of the auctioneer’s gravel or hammer that seals this final bid.

When you’re planning your next auction, contact us at Smith & Co. Auction & Realty, Inc. and let us help you make it a success! We’ve been in business for over 20 years selling everything from farm machinery to 3100-acre ranches, and we are Northwest Oklahoma’s choice for all of your land auctions and real estate needs.

All About Auction Chant

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Auctions can be exciting to attend, with the anticipation of who will be the highest bidder and the auctioneer talking a mile a minute. But have you ever wondered why they talk so fast? There’s more to it than you might think!

TraditionAll About Auction Chant

Known as “the chant,” auctioneers’ fast-talking styles date back to the 1920s. The chant consists of filler words between bids to keep the rhythm going. Although the chant is done at a high-speed, clarity is also important. Every decade since, auctioneers have considered the chant to be the right way to make a bid call.

Quicker sales

Because of the rapid speed of the chant, items sell quicker. Speaking at a normal pace could cause the auction to go for twice as long while still selling the same amount of items. The fast pace doesn’t give buyers much time to think about their decision, which can result in more buys.

Entertainment

People are always fascinated by auctioneers’ ability to talk fast. Their quick speech naturally creates excitement and anticipation, which draws bigger crowds and more potential buyers. It’s also much different from the speech styles we’re used to hearing on a daily basis, making it even more interesting.

If you’re looking for an auction company with the best auctioneers around, contact us at Smith & Co. Auction & Realty, Inc.! We’ve been in business for over 20 years selling everything from farm machinery to 3100-acre ranches, and we are Northwest Oklahoma’s choice for all of your land auctions and real estate needs.

Do You Know the History of Auctions?

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Did you know that auctions have been around for over 2,000 years? The practice of people gathering in groups and bidding to purchase different objects, whether it’s land, jewelry or homes, has been a part of our history for many generations. Ancient Greek records show evidence of auctions taking place as long ago as 500 B.C.History of Auctions

Past

Sadly, the history of auctions began with women being auctioned off for sale as wives to affluent men in Ancient Greece; but a few hundred years later, Romans used auctions to sell family estates, and to sell goods that were won in war.

Quite significantly, in 193 A.D., the entire Roman Empire was placed up for auction by the Praetorian Guard, according to National Auctioneers Association.

The presence of auctions on American soil began with the Pilgrims. Early American settlers sold items like crops, livestock, tobacco and other objects at auctions to townspeople.

Present

In many cities around the world, auctions, especially silent auctions, in which participants write down the amount that they would wish to pay for a certain item or service and the highest bidders are announced later, have become a very popular way to raise money for charities of all kinds.

Some early traditions of auctions, like the selling of land possessed by the state, or the selling of a person’s estate—their goods and their property—when they did not have a will or living relatives, are still very much a part of auction culture.

If you’ve never been to an auction before, but are curious about what it’s like, view a list of upcoming auctions and give Smith & Co. Auction & Reality, Inc. a call today at 580-254-3975. We sell everything from farm machinery to 3100-acre ranches and we are Northwest Oklahoma’s choice for all of your land auctions and real estate needs!

Exploring Different Auction Types

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When you think about an auction, images of a fast-talking auctioneer standing on a stage in front of an audience raising bid paddles are likely to come to mind. But did you know that there are actually several different types of auctions?Exploring Different Auction Types

Absolute auction

An absolute auction is the most common type of auction in which items or properties are auctioned off to the highest bidder. In this type of auction, the item or property is guaranteed to be sold because there is no minimum price that the seller is looking to hit. This creates a lot of interest and competition among bidders.

Minimum bid auction

In a minimum bid auction, the bidding begins at a minimum price that the seller is willing to accept. This price is published ahead of time in brochures and advertisements, and is announced at the auction. Holding a minimum bid auction is a good way for the seller to ensure they will be compensated with an amount they consider to be acceptable. But the price must be chosen wisely in order to ensure that as many bidders as possible will still be interested in attending the auction and not feel priced out.

Reserve auction

In a reserve auction, the seller comes up with an ideal price, but does not disclose the price to the bidders. In the event that this reserve price is not met, the seller has the opportunity to reject the highest bid. This gives the seller a chance to walk away if they aren’t getting what they want, but this type of auction can turn some bidders off, as there’s no guarantee they will get the item or property even if they’ve made the highest bid.

Multi-par auction

When selling several tracts of land, auctioneers may choose the multi parcel method of selling. This method allows the buyer to have control of any tracts or parcel throughout the auction. The buyer selects the lots they wish to purchase and bids on them, first by acre and then in whole dollars. After a per acre price is established by individual tracts for the entire acreage, any bidder may add to the total amount bid on any tracts in present dollar amount established at the beginning of the auction or as new bids are posted. The lots will be announced closed if no advance of bid is made within a certain time frame.

If you live in the Northwest Oklahoma area and are looking to hold an auction for anything from farm machinery to ranches, Smith & Co. can help! We have over twenty years of experience, and our experts will make sure you are in the best position to achieve your desired results. Contact us today!

Tips for First Time Auction Goers

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Heading to your first auction? You’re in for a treat! You’ll be enjoying one of America’s most popular pastimes while finding some great deals on unique items you can’t get anywhere else. If you’re new to auctions, however, there are a few things to keep in mind to make your experience as smooth and enjoyable as possible.Tips for First Time Auction Goers

The early bird gets the…

Well, not the worm, but the chance to find a parking space easily, not to mention the opportunity to do your research on the items you might bid on. Most auctions have 90 minutes of preview time before the event gets started. This gives you time to inspect and measure any item that catches your fancy.

Learn the lingo

Buyer’s premium, reserved vs. unreserved, choice out … these are all terms you’ll encounter at an auction. If you don’t know what they mean, make sure to familiarize yourself with them before the action starts.

Chose wisely

Items at an auction are sold as is. If you’re in doubt, bring a friend along who might know better than you do whether an item is in good condition. And remember, unlike at your neighborhood big-box chain store, there are no returns at an auction. You’ll be expected to pay for the items you’ve purchased in a timely manner, even if you want to change your mind.

If you’re interested in attending your first auction, check out Smith & Co. We hold as many as 80 live auctions each year and we post our upcoming auctions so you never miss an opportunity. Give us a call today at 580-254-3975 to find out more!

Tips for Choosing an Auction Company

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Holding an auction can be a great way to sell all kinds of things, from homes to antiques to farm equipment and more. To have a successful auction, you’ll want to go through a reputable company. But how do you know what to look for?

Here are some top tips for choosing the right auction company:

Experience

You’ll want to make sure the company has a strong history of holding auctions. Find out how many they’ve held, and how long they’ve been in business. Also make sure they belong to accredited organizations like the National Auctioneers Association. While you might save money going with a newer company with less experience, you might not be able to sell your items for as much as they’re worth, or even at all. Smith & Co has been in the auction industry for over twenty years, selling everything from farm machinery to ranches in the northwest Oklahoma area, so you can trust that we have the necessary experience to hold a successful auction.

Resources

Many people don’t realize how much is involved beyond the auction itself. You’ll need to be set up with attorneys and lending agencies to help finalize the deal, and good auction companies will do this for you. If issues arise after the auction, you’ll want the auction company you worked with to be able to step in and help.

Marketing

Leading up to the auction, a good auction company will start creating buzz about your items. They should be transparent about their marketing plans and their strategy for getting the most people to attend the auction as possible. Make sure the plan isn’t one-note: a good marketing plan will be a diverse one with outreach on various platforms.

Contact Smith & Co. today and let us help you with your next auction! We are always available to offer personal help to some of the biggest decisions you will make in your life!