FAQ

What if I just need an Auctioneer as a bid caller, are you available?
We can supply an Auctioneer to call bids without our full service for some Banquet Auctions or for Association Members who need a hand.  Click here for information on our Benefit/Fundraising Auction packages.

We have an entire Estate to sell including the Real Estate, are you able to help us?
Yes. We have a highly skilled Real Estate Auction team in which Tim Narhi is a Real Estate Broker as well as a Certified Estate Specialist.

We have a Business that we have decided to close, are you able to assist here?
Yes. Whether you are retiring or just changing operations, be it a Farm, Industrial Manufacturing, Construction, Retail, or whatever it may be, we have the staff and the network to serve your needs.

How do I know if I have enough for an auction?
We can help you determine that without cost or obligation; simply call our office 810.266.6474

I only have a few pieces to sell, can you help me?
Yes. For your construction equipment, tractors, farm equipment and tools we have regularly scheduled consignment auctions.  Click here to consign equipment.  For other items contact john@test.narhiauctions.com for online auction opportunities. 810.266.6474

How long does it take to have an auction?
Real Estate Auctions require 6-8 weeks from contract to auction day and will generally close within sixty-days (sometimes less).
Personal Property Auctions require 4-6 weeks depending on what we are selling for you and where it needs to be marketed.

What is the best time to have an auction?
As soon as you are ready.  You should get with us as soon as you have an idea of the time of year you would like to have the Auction. Some Auctions are booked as much as a year in advance. Some Auctions are annual events and have set dates. Prime dates tend to fill in quickly. Don’t hesitate to call. 810.266.6474

What can be sold at auction?
Virtually anything that can be sold by any other methods can be sold at auction.

How do I know if I should have an online or an onsite auction?
Our experienced staff can help you determine which method or a combination is best for your unique situation.

Do I have to pay in advance to have an auction?
Many auctions do not require money up front; the expenses are deducted from the proceeds of the auction.

When will I receive payment from the auction?
Most personal property auctions can be settled the same day.  Auctions with online bidding there could be a slight delay in order to collect payment from online bidders. 
Real Estate auctions are paid at closing which is usually within 30-60 days.

What are the benefits of selling at auction?
People compete to purchase your goods or property.  There are no contingencies.  Fast turnaround.  There is no set ceiling price.  It is FUN!

How does an auction work?
An auction is simply a competitive means of selling that also expedites the time required to do so.  The Auctioneer puts an item or property up for bids, upon accepting a bid allows competitors to make better bids and continues this process until it is determined that all timely bids have been placed, closes the opportunity to bid by selling the item or property to the person who bids the most.

Do I have to guarantee the items in the Auction?
No. Many times we are selling items for personal representatives of an Estate who have no idea of the condition of the items being sold. We always sell “As Is” though where there is a known flaw we do announce them.

What can I do if I do not have a good location for an Auction?
We can help you find a facility that will suit your needs.

How far will you travel to conduct an Auction?
We will travel anywhere in Michigan. The size of the Auction may affect the feasibility. We are located in the “Palm of the Mitten,” in the corner of Livingston, Shiawassee and Genesee counties, serving these and the surrounding counties on a regular basis.

What is a buyer’s premium?
It is simply a method used by Auction companies to be compensated for their labor and efforts in conducting an Auction.

• Why is it charged at some Auctions and not at others?

Some Auctions are commissioned by the seller, in which the seller pays the Auctioneer a commission while others decide to use the Buyers Premium method. It is a matter of choice negotiated between the Auction Company and the seller.

• Isn’t this a penalty to the Buyer?

No. A properly executed Auction will have clear Terms and Conditions posted and/or announced well before you ever place a bid. The Buyers Premium as well as what the percentage amount being charged should be a part of these Terms and Conditions. Once you are aware of this you do need to pay a little closer attention to your bidding, then you place your bids accordingly.

• If I bid x% less because there is a x% Buyers Premium doesn’t that penalize your client the seller?

No. Strictly for an example: let’s use the amount of 10% commission ($1,000.00 on a $10,000.00 purchase) and the client/seller nets ($9,000.00). At a Buyer’s Premium Auction you would “bid accordingly,” you would probably bid 10% less, therefore your bidding would stop at $9,000.00 (the client/seller net). 10% will be added to compensate the Auctioneer ($900.00); the total amount you pay is $9,900.00. In this scenario the seller nets as much and you pay a little less!

Why is sales tax charged at some auction and not others?
The State of Michigan requires sales tax to be charged unless there is an exemption. There are many Auction scenarios that are exempt from sales tax. There are also scenarios that would change an exempt Auction to non-exempt.

How do I bid at an auction?
Bidding at an Auction can be great fun, just remember it is also serious business

• Whether you are physically at the Auction (Live), or you are leaving a bid because you are unable to attend (Absentee), or you are bidding Online (which could be an actual Live Auction Simulcast or strictly Online), you will need to register with the Auction Company
• When you bid you are entering into a contract. Once you become the high successful bidder you will be required to perform, which usually means pay for and procure your purchase. You will want to be aware of the Terms and Conditions of the Auction in which you intend to be bidding at. Not only will the Terms and Conditions vary from one Auction Company to the next, they could be different from one Auction to the next within the same Auction Company. The Terms and Conditions are your Rules so to say on what is expected of you and how the items for Auction are being sold. You need to be familiar with the Terms and Conditions.
• Be sure you are aware of what item is being sold. Sometimes excitement and anticipation run high and bidding could be placed on the wrong items or lot. Many Auction Companies will not honor mistakes and you will be required to pay and remove something in which you have no interest.
• Be aware of any additional fees that will apply such as Buyers Premium, Sales Tax, and shipping, etc. where applicable, so that you will be able to stay within your budget.
• At a LIVE AUCTION once the Auctioneer gets to the item or lot in which you would like to bid the Auctioneer will usually suggest a price which is their quick evaluation of the item or lot. If you are comfortable with this suggested price and would like to bid that amount you simply raise your bid number and attract the Auctioneers attention either directly or to one of the bid assistants that are helping the Auctioneer. Quite often the Auctioneer will not get a bid at the suggested open call and will solicit to open at a lower price to get the bidding started or you may offer a start. For example: the Auctioneer may call “who’ll give five hundred?” You could call “two hundred” and the bidding would start there. Whether the bid is started by you or someone else pay attention to the numbers in the Auctioneers chant. The Auctioneer will go back and forth between two numbers until someone else bids. For example: “I’m at two hundred, will you give three, now three, two hundred’s the bid give three.” Once you hear that change to “three and now four, will you give four now four…” that indicates that someone has bid three hundred and if you would like to bid again you need to increase your bid in an amount to surpass what the Auctioneer has bid and in a suitable increment to the Auctioneer. For example: the Auctioneer may accept a bid of three hundred twenty five at this point but not be willing to accept three hundred and five. This will continue until the bidding has reached a point that the Auctioneer determines that the item has reached its potential for the bidders at hand in which both value and timing come into play. Once the Auctioneer reaches this point and closes the bidding and you are the high bidder they will ask for your bid number and record the transaction. Depending on the specific Terms and Conditions of the Auction in which you are attending, you may need to procure your item immediately or you may not. Many Auction Companies allow you to pay once you are done bidding for the day, some may require a deposit or full payment for each purchase. Once again refer to the specific Terms and Conditions for the specific Auction.
• ONLINE BIDDING: the Terms and Conditions, as well as their specific procedure should be fairly well spelled out on the web site in which you are using.
• ABSENTEE BIDS: some Auction Companies have a system for this and some do not allow or make provisions for any Absentee Bids. We do have a program for this that you can view, see Absentee Bid Form.
• However you are planning to bid remember to have FUN!

What is the difference between an Auction that is advertised as an Absolute Auction and an Auction that does not say Absolute?
There are only two types of Auctions: Absolute Auctions and Auctions with Reserve. Basically in order for an Auction to qualify to be an Absolute Auction it has to have the terminology in the notification and promotion of “Absolute” and/or “All items sell to the highest bidder regardless of price”, which for the most part is the definition of an Absolute Auction. At an Auction with Reserve the seller has a little more control and may choose to place reserve or minimum acceptable bids on any or all the items to be sold.

How do I pay for my purchases?
Refer to the Terms and Conditions for this information.