A common question we get from business owners is "How much will the assets sell at auction?" After reviewing the assets, the auctioneer will give the client a conservative estimate of what the sale will cost based on his market experience and current market trends. The company should be realistic in its expectations to enable the seller to make informed decisions and act in their best interests.
Do you think the company you are looking at working for you is better than the one you're against? This may depend on the agreement you make. If you are searching for an auction company in Nashville, then you can check out the web.
The compensation of the auction company should be considered by business owners. There are several types of commissions: straight commission, outright acquisition of assets, guaranteed bases with a split above to the auctioneer and the seller, guaranteed bases with any excess going to the auctioneer, flat fee structures, and guaranteed base.
A straight commission structure pays a percentage of the sale to the company.
An outright purchase agreement means that the auctioneer is your final buyer. The company buys your assets and moves them. This is an option for some situations. However, they will likely want to buy your assets at a lower price in order to make a profit later.
The auction company will guarantee that the auction will bring in a minimum number of sales by giving a minimum base guarantee. Any amount above this amount is either split with the seller or goes to the auction house.