Auction Explanations

An Auction is a matter to determine the actual value of your assets. Through competitive bidding the value will be determined by the bidders at the auction. By utilizing Premier Assets you will realize maximum return.

Commission Auction

In a Commission Auction the auction company charges a percentage of the overall proceeds to the seller along with a maximum amount of expenses for marketing and expenses.

Buyers Premium Auction

A Buyer Premium is simply a fee that is added to the hammer price of an item at the auction that is paid for by the buyer. In most cases the percentage is 12%.

Example – If a bidder bids $100.00 for an item the final price will be $112.00.

In the Buyers Premium auction, the seller is responsible for a negotiated maximum amount of the expenses for marketing and labor. In either case as stated above the seller accepts certain risk. Most risk are obvious but the main risk accepted by the sellers is allowing the auction company to voer estimate the value of the equipment.

Unfortunately, not everyone in the auction business has the highest degree of integrity. At Premier Assets we “tell you like it is” not “tell you want to hear”.

Guaranteed Auction

A Guaranteed Auction is one that Premier Assets guarantees you a certain net amount to you the seller. 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 devided, as negotiated, between the seller and the auction company..

In a Guaranteed Auction there are minimal monetary risks for a seller. However the ability for the seller to profit from a successful sale remains intact.

Cash Purchase

In a Cash Purchase, the auctioneer actually purchases the assets for an agreed-upon price. The seller agrees to allow the auctioneer to have a cost free use of the premises to conduct an auction for a specified period of time, usually 60 to 90 days.

Once the price has been offered by the auctioneer and expected by the seller, a formal contract will be executed. Upon receipt of a signed contract from the seller, the auctioneer will issue a check in certified funds or will wire transfer an amount equal to 10% of the purchase price. The remaining 90% will be paid and delivered to the seller in certified funds the day of and prior to the start of the auction. It is the responsibility of the seller to transfer titles, of all equipment purchased to the auction company, The titles are to be free of all liens. In a Cash Purchase the seller assumes no risk and has no interest in the outcome of the auction.