Insights and bidding tips from top auctioneers

In this article, we speak to auctioneers about the importance of auctions for the livestock and property markets. The experts also provide some bidding tips for those who are new to the game.

Insights and bidding tips from top auctioneers
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Andre Kock & Seun Limpopo

Why are auctions important for the livestock sectors?
They determine the price of livestock on the market. They serve as a medium for big and small farmers to sell their product on an equal platform to the market.

How do you choose an auctioneer to present you when you are selling livestock?
The farmer will have established a strong relationship over the years with a certain auctioneer; it should be one the farmer feels comfortable with and trusts. An important factor is whether the auctioneer will be able to pay the farmer in full within the contractual time frame.

Please provide some bidding tips.
Know the product you’re bidding on, and do your homework on the product. Make sure it aligns with your farming strategy. Decide on the price you are willing to pay, and stick to it! Don’t let the hype of the auction let you surpass your price.

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How do I become an auctioneer? What are the first steps I should take when embarking on a career in auctioneering?
Being an auctioneer is a passion you are born with and it is usually a career you know from a young age you want to pursue. Getting a role model to teach you the ins and outs from a young age is very important, and competing in junior auctioneering courses and competitions can help you embark on a career in auctioneering.

How has online bidding changed the auctions game?
Online bidding has changed the auctioning game for the better. It has increased the buyer’s market by providing all buyers with an opportunity to participate in the auction without geographical boundaries. But, if a buyer uses an online platform to purchase livestock, he or she should do even more homework on the product than when bidding in person.

Agrisell Auctions

Why are auctions important for the property sector?
Auctions play a pivotal role in the property sector for several compelling reasons. While each of these reasons warrants a more detailed exploration, here is a brief overview of the key points:

  • Auctions provide a distinct timeline for concluding sales, eliminating the vagueness of open-ended negotiations.
  • Auctions establish a secure platform and mechanism, whether through physical or online auctions, ensuring transactions take place in a controlled and responsible setting.
  • Auctions ensure the realisation of the optimal potential price in the shortest time, aligning with the preferences of the market and potential buyers at that specific time and location.
  • Employing a reputable marketing agency becomes crucial to securing optimal exposure and attracting relevant buyers.

How do you choose an auctioneer if you’re considering selling your property?
Start by researching auctioneers in your area who specialise in auctions. A positive reputation for honesty, transparency, and successful sales is essential.

Ask for referrals. Look for auctioneers with a proven track record in selling the type of property you have. Experience in your specific sector can greatly enhance their ability to attract the right buyers and negotiate effectively.

Also enquire about their marketing strategy. A strong marketing plan that includes online promotion, advertising, and attracting a wide range of potential buyers is crucial for a successful sale.

Meet with potential auctioneers to discuss your goals, expectations, and any concerns you might have. A good rapport and clear communication are essential for a successful collaboration.

Remember that the auctioneer you choose becomes your representative in the selling process, so take your time to thoroughly evaluate your options before making a decision.

How has online bidding changed the auctioning game?
Online bidding has expanded the bidding pool, and allows participants to bid from the comfort of their homes or offices, eliminating the need to physically attend an auction.

This convenience attracts a wider range of bidders, including those who might have been unable to attend in person. Online auctions often feature extended bidding periods, which can range from days to weeks.

This prolonged time frame provides bidders with more opportunities to engage and bid, resulting in potentially higher final prices.

Online bidding systems also provide transparent and real-time information about current bids and bidding history. This transparency builds trust among participants and creates a more efficient and competitive environment.

Peter Maskell Auctioneers

Why are auctions important for the livestock and property sectors?
Auctions play a crucial role in the livestock and property sectors because they allow for efficient price discovery. This means that they provide a transparent and competitive environment for buyers and sellers to determine the fair market value of livestock or property.

The bidding process allows for a real-time assessment of supply and demand, helping to establish the current market price. The competitive nature of auctions also encourages participants to bid their maximum price, which can lead to higher prices for sellers.

In terms of property, specifically, auctions can be useful for liquidating properties quickly, such as in cases of foreclosures or estate sales. This can help sellers avoid the costs and time associated with traditional selling methods.

Auctions also allow for the observation of market trends. For example, if a particular type of livestock consistently fetches high prices at auction, it may indicate strong demand for that breed.

How do you choose an auctioneer to present you if you’re selling livestock or property?
When looking for an auctioneer, consider the experience and expertise of the auctioneer. Look for an auctioneer with a proven track record in conducting livestock or property auctions.

Experience in the specific sector you’re dealing with is crucial. An experienced auctioneer will have a deep understanding of market trends, pricing strategies, and effective auction techniques.

Research the auctioneer’s reputation within the industry. Ask for references or look for reviews and testimonials from previous clients.

Also consider the auctioneer’s ability to reach a wide and relevant audience. A strong network of potential buyers is crucial for a successful auction. Ask about their database of interested buyers and their ability to attract buyers from various geographic areas.

Finally, check if the auctioneer is licensed and accredited by relevant industry associations. This ensures that they adhere to ethical standards and professional guidelines.

Please provide some bidding tips.
When bidding, begin by setting a budget. Determine your maximum bid before the auction starts. This will help you avoid getting caught up in the excitement and bidding beyond your financial limits.

Research is also important; know the market value and relevant details of the animal or property you are bidding on. If possible, also attend any preview events.

When bidding begins, start with small increments. This will help you get comfortable with the process and allow you to observe how other bidders are responding.

Also pay close attention to the auctioneer’s rhythm and pace. They often use various cues to indicate the current bid and who is bidding. Understanding these cues can help you stay engaged and avoid missing a bid.

Finally, be prepared to walk away.

If the bidding exceeds your budget or the value of the animal or property, be ready to walk away. It’s better to miss out on an item than to overspend and regret it later.

How do I become an auctioneer? What are the first steps I should take when embarking on a career in auctioneering?
First, you will have to meet eligibility requirements. In South Africa, auctioneers need to meet certain age and legal requirements. Typically, you need to be at least 18 years old and have a clean criminal record. You may also want to go for the relevant training.

How has online bidding changed the auctioning game?
Online bidding has significantly transformed the auctioning landscape because of increased accessibility; we are now reaching wider audiences than ever before.

Online auctions are also more convenient, and help lower the costs for buyers and sellers, as they no longer need to travel long distances to attend an auction. This means that the bidding pool is ultimately bigger, which is good news for sellers.