Auction Industry FAQ'S: How Auctions Work
Online / Live Auction Buyer Questions
How do I become a Registered Bidder?
*On our website, www.FragodtAuctions.com you will see at the top of the page a tab that says Login/Register. Click that button. If you have already signed up for our auctions, you simply put in your Username or Email, along with your password and you are able to bid on our auctions. If you have not previously signed up for our auctions you click the Red Button that says “Register.” That button will have you verify your email address, ask you a few questions about your name and address, and for our auctions that we charge Credit Cards at the conclusion, it will ask you your card information. When that information gets entered you are registered and able to bid on our auctions.
What is a Timed Online Only Auction?
*Timed auctions run for a defined period of time, allowing bidders to register and place maximum bids on items with confidence. As the auction progresses, bidders have the opportunity to raise their bid amount.
How does a Timed Online Only Auction Close Down?
*A timed online auction ends at the time specified by the auctioneer, however, extended bidding may occur if additional bids are placed in the last three minutes of the auction. This is to prevent last-minute bidders from sniping the lot, and to give all bidders a fair chance to place their best bids. If you are the highest bidder at the close of a lot, you will receive an email at the auction’s close notifying you of your purchase.
What is a Buyer’s Premium?
*A buyer’s premium is commonly used in auctions today as a form of payment for the auction company conducting the auction. The buyer’s premium is an advertised percentage of the high bid or flat fee added on to the high bid to determine the total contract price to be paid by the buyer.
What does “AS-IS, WHERE IS” mean?
*One of the most common statements made at auction, “as is, where is,” simply means the property is being sold without warranty and that there are no contingencies based on the status of the asset being sold. It is important that you inspect all auction properties before you bid, both real estate and personal property. Photos may not show all the details or potential faults with the asset and it is your job as a well-informed bidder to thoroughly inspect and know what you are bidding on BEFORE the start of the auction. Once you bid and buy an asset at auction, you are the new owner.
Where are the items located?
*Most of the items on our auctions are still at the owner’s place. The approximate location, the owner’s name, and phone numbers are in the item’s description. If you wish to view any items, simply give them a call, and set up a time to go and view the items.
Can I inspect the items I am interested in bidding on before the auction?
*We encourage you to view the property before auction day. Due diligence on the part of the bidder is important with auctions. Contact the auction company and inquire about times when open houses will take place. Auctioneers want you to feel comfortable with the items you are bidding on. Always feel free to call and ask questions.
What happens when I “WIN” an auction item?
*Invoices/Receipts are E-mailed to the E-mail address you registered with approximately 30 minutes after the final auction item has closed. If you think you won something and do not see an invoice, check your junk folder or contact us to get a new one sent out. This e-mail will also contain all of the Payment and Load Out information.
I have won an item and received an Invoice, now what?
*Payment Options: Pay Online with a Check or Credit Card, Check or Credit Card by Phone, Cash, Check, Credit Card, Wire Transfer *A 3% Surcharge will be added to all Credit Card Invoices. *Contact our office for wire instructions. Payment can be sent by check, as soon as we get the check we will e-mail you out a Paid Receipt, you can then contact the owner (his name and number are on your receipt) and go and pick up your item. You can also make payment at our office in Milan or over the phone with a credit card. **No items will be released until full payment has cleared our office.
What is the difference between an “absolute” auction and a “reserve” auction?
*An “absolute” auction or an auction without reserve means that the item is sold to the highest bidder, regardless of price. A “reserve” auction gives the seller the right to set a minimum price they are willing to accept for an item. In this type of auction, the seller is only obligated to sell the item if the bid amount meets or exceeds his or her reserve price. Unless advertised as “absolute,” auctions are considered to be “reserve” auctions.
I forgot my password. What are my next steps?
*On our website, www.FragodtAuctions.com you will see at the top of the page a tab that says Login/Register. Click that button. Under the Password box in Blue letters is a link that says “Forgot Password?” There you will enter the E-mail address you’ve previously registered with and it will e-mail you a link to reset your password.
Online / Live Auction Seller Questions:
I’m thinking about having an auction, what are my first steps?
*The first thing we always like to do is come and look at the items you wish to sell. From there we can make a plan that will best fit your particular situation.
When is the best time to have an auction?
*Whenever you are ready. With the world being so connected, any time is a good time. There are always buyers in the market.
I’ve sold an item at your auction, now what?
*The buyer will now make payment to Fragodt Auction Co. When we receive payment we give them a receipt that says Paid in Full on the top. They will then contact you to set up a time to come and get their item. Fragodt Auction Co mails out checks to our sellers approximately 7-10 days after the auction.