Another Don't Get Taken Article

When selling your equipment at auction, watch for hidden fees that can cost you money. Be sure you get it in writing what you will be paying for and how much. While most auctioneers are honest and up front, every now and then you run across one that seeks to not only, feather his nest, but plump the feathers as well? I recently heard of a case where an individual hired and auctioneer to hold an auction to sell some items filling up his shed and garage. The percentage of 12% was agreed upon and the seller was told the auctioneer would list it on his website. The seller was also told by the auctioneer, he regularly lists his upcoming auctions in a weekly auction calendar in the local newspaper, the auctioneer said, we will also list it there for a small fee. This is the only time an additional fee was mentioned. The seller provided a list of items. He also listed a bit of information about each item as to condition etc.for the auctioneer to tell the bidders during the sale. Thinking everything was understood the verbal contract and handshake took place. The sale took place as agreed. The seller noticed the auctioneer was failing to represent his items, instead he made comments such as your buying this, as is, I don’t know any thing about it. Rather than approach the auctioneer and remind him in front of everyone, that he did know about the items and he felt the verbal contract had been violated, the seller remained quiet, hurt and angry the seller left before the sale ended. Later when the seller received his settlement check and a description of charges he found his actual charges amounted to 66% of the proceeds. The seller was not only charged the agreed 12% sellers fee, he was charged a ridiculously large fee for advertising, that amounted to 22% of the proceeds, another 11% for use of the facility, 5% for listing it on his website and yet another 40% for the auctioneer and his staff to perform their services. The only thing they forgot to charge for was the chalk to write it on their upcoming events board, he could get a bill for that in the next few days. This seller no longer wonders why the day of a man’s word and handshake has been taken over by legal closed ended contracts requiring a lawyer to interpret. Oh, I almost forgot, the auctioneer brought a few of his own like items to sell at this sale too, since he felt this would be a good crowd of buyers for them. I feel this was tacky and unethical if not maybe even illegal, had this seller demanded a written contract. I have not had much experience with how auctions are run but, would like to hear from auctioneers and sellers on the subject.