Is An Online Only Auction For You?
Auctioneers With Online Bidding – Is It For You?
The world of auctioneering has changed a lot in the past 10 years. In fact since 1995 people have become accustomed to online auctions through Ebay. Today some auctioneers have completely quit doing live auctions opting instead to take all of their auctions online. Some auctioneers continue to offer both options and some like us at DreamDirt offer both options plus a simulcast auction which is a hybrid between live and online auctions.
Live Auction- At a live auction buyers attend the auction and bid as the auctioneer cry’s the sale. Ahead of time the auctioneer will usually photograph, describe and create a sale bill, distribute marketing via newspapers, TV, radio, mail, email, social media, Internet ads and sale bills in public locations. In this case they bid by holding up a hard, card or other customary means to let the auctioneer and his/her ringmen know they are placing a bid. Buyers will compete for assets until a bidder places a bid and no further bids are placed. The buyers will checkout with the cashiers at the end of the sale paying for their purchases and taking them with them at that time.
Online ONLY Auction- Some call these auctions Internet only auctions. The concept of an online ONLY auction is no different than a live auction other than the auction will happen in a different way. The auctioneers will gather, prepare, photograph, describe and upload all of the assets to a website where the bidding will occur. Some auctioneers have a custom platform built just for them, others may use a platform that many auctioneers use which can bring some strength in numbers. Once the items are placed online the auctioneer will create and distribute marketing that is identical to a live auction. For us at DreamDirt the difference is where the auction occurs, all other things remain the same.
Simulcast Auction- A simulcast auction is an auction that is a live auction that allows some bidders to bid online. With a simulcast auction a live in person event is held, bidders come in and bid live in front of the auctioneer. For those that could not be present because of other engagements, distance or other reason can still bid. These auctions offer sellers the best of both worlds and maximum exposure of their assets. The addition of online bidding to a live auction has reduced and almost replaced absentee bidding for those auctions offering it.
Anything can be sold online. I really mean anything. I could give you an example of literally every type of asset that has been sold online at some time or another. DreamDirt specializes in the sale of farm and agricultural assets and our most typical assets sold are farmland, residential real estate and farm machinery. Our company offers all 3 auction types mentioned above and have successfully sold sellers assets by each method.
The question today “Is an online auction for you?” I ask the question because online only auctions are fairly new to most people and platforms are cropping up everywhere, even places where you can list your own auction and sell it avoiding paying commission. Many people believe its a really easy way to sell something, even cheap. For some, initially its some sort of miracle. They can take some pictures, put it online and just wait for the bids to roll in. Many that I have spoken with have found out that their initial impressions were wrong, its really not all that “easy” to do and achieve maximum price.
If you are interested in an online only auction you have to know they can achieve the exact same results as a live auction, BUT ONLY IF CONDUCTED PROPERLY. That is a really really important part of the equation. Today many are conducting these auctions with no auction experience, with no education or specialized training and that is a recipe for disaster. Some have had to learn that the hard way. This leads me to the #1 ingredient, the #1 consideration, the #1 way to make your online auction successful and that is for it to be conducted by a trained, qualified and experienced auctioneer.
What should you expect if you were to have us conduct an online auction for you? First the only difference is the event itself. An online auction is not cheaper in terms of marketing. It is no less labor or preparation on our part either. Literally the only difference is the auction event itself is held online and not in person. This does provide convenience for buyers, but it does not change anything the auction company does in terms of preparation or marketing.
An online auction will have behavior very typical of a live auction. We often market the asset and allow for a bidding period from 14-30 days but most of those days will be spend answering bidders questions, giving them previews and tours and in most cases bidding will not be very aggressive until toward the end of the auction. In the last 24 hours bidding will become much more aggressive as buyers take to the computer to place their bids and you’ll see the competition in the final 2-3 hours can be fierce, in the same way a live auction is.
DreamDirt has invested in the technology and training to ensure our company provides exceptional services for both buyers and sellers for online only auction experiences. What assets can be sold by online only auction?
- Homes, Acreages and Farms
- Cropland Leases
- Recreational land
- Farm and Construction Machinery
- Collectibles and Farm Primitives
- Estates and Personal Property
- Agricultural Businesses
I mentioned earlier that if an online auction is for you then you should strongly considering an experienced professional auctioneer to conduct the online auction. An auctioneer properly qualified with the right resources to conduct your online only auction will bring you greater success and less frustration. At DreamDirt we have been among the early adopters of new technologies including online bidding and we welcome the opportunity to visit with you about the sale of your assets and help guide you through the process to ensure you have everything necessary to bring the most money for your assets. Call us at today to learn more (855)376-3478
CAI Auctioneer, Land Broker
Founder, Auctioneer, Broker, and Agent at DreamDirt, Jason Smith is a lead farm real estate professional in the Midwest. He has achieved the pinnacle of auction education earning the CAI designation and is one of only 11 CAI auctioneers in Iowa. Jason graduated from the World Wide College of Auctioneering, and has achieved the PRI designation from the Professional Ringmen Institute. Jason and his wife founded DreamDirt in 2005, and the company continues to be a leader in the farm auction space and prides itself in offering extensive land seller and buyer information.
Email: email@example.com | Phone: (515) 537-6633
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