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Farm Auctions and how they are run?

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B. Abseck

01-29-2007 16:23:35




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I have never been to a farm auction so I have a few questions. (1) If a person bids on a piece of farm equipment and is the high bidder, do you have to carry the amount of cash with you or what arrangements do you have to make in advance for acceptable payment later?
(2)Do you have to register with the auction company before the auction or can you just show up and bid?
(3)Are there any telltale signs of something fishy going on in the bidding?

I had the opportunity to go to a auction this past week and tried to get in touch with the auctioneers to ask these questions but all I kept getting was their answering machine. VERY FRUSTRATING!!! Any information is appreciated. B. Abseck

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Leland

01-30-2007 17:30:50




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 Re: Farm Auctions and how they are run? in reply to B. Abseck, 01-29-2007 16:23:35  
Get a letter from your bank explaining just how much your check can be written for



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Hard Knocks

01-30-2007 15:55:41




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 Re: Farm Auctions and how they are run? in reply to B. Abseck, 01-29-2007 16:23:35  
I haved attended 100's of farm auctions over the years in VA,PA,MD,NC,NY,WVA and Ohio and each is a little different.If you are going to a farm sale held on the farm with the seller selling equipment he actually used its one thing consignment auctions where farmers bring items to a yard to sell are a whole different animal.
If you're going to a farm auction and are looking to buy a specific item get there early or if close check it out the day before and try to talk to the owner/farm manager etc about the item. Look it over closely just like you would a private sale. Set in your mind what you want to pay don't worry about who is bidding against you whether they are kin to the auctionneer or whatever just bid your price and quit if you get it fine if not there is always another auction

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Dave Anderson

01-30-2007 15:00:23




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 Re: Farm Auctions and how they are run? in reply to B. Abseck, 01-29-2007 16:23:35  
I second the fellow who doesn't go to an auction with a buyers fee/penalty. The auctioneer is a paid agent of the seller, not the buyer and the seller. I always like to get these auctioneers livid mad when I go to their sales. Once, at a sale the auctioneer and the whole crowd moved from a barn at one side of the farm, to another barn about 300 yards away just to sell one item that went for $5.00. He asked the crowd You mean I walked all the way over here for 5 bucks? I answered no you walked all this way for the commission on 5 bucks! LOL

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big hunter

01-30-2007 08:45:14




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 Re: Farm Auctions and how they are run? in reply to B. Abseck, 01-29-2007 16:23:35  
I've been to equipment auctions, got the list with serial numbers of equipment to be sold, sat there and watched as they (many of them) were sold to high bidder only to go to another auction a month later in the next state over to see the same equipment being auctioned again. I think alot of auctions are rigged somehow.



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NEsota

01-30-2007 07:29:57




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 Re: Farm Auctions and how they are run? in reply to B. Abseck, 01-29-2007 16:23:35  
Gerald J., When I took a Business Law course, this was not for people who expected to practice law just for those wanting to get along in life, we were told that after bidding for an item you have the right to cancel your bid any time until the auctioneer accepts your offer. In your baler example an $800 bid was supposedly accepted. That should cancel any bids made at a lower price. The baler was probably well worth the $700 to you but I, when bidding think of the auctioneer as an opponent and if they get a little egg on their face while representing the best interests of the seller, well, that’s good entertainment. My guess is that if the bidding was restarted, it would have brought <$700. Disclaimer, do not treat this as legal advice.

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mjbrown

01-30-2007 04:54:33




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 Re: Farm Auctions and how they are run? in reply to B. Abseck, 01-29-2007 16:23:35  
I learned that it is a good idea to check the prices of the same equipment at a dealers and use that as your gold standard. If you buy from a dealer you have some one to go to if the item has problems. If you buy at auction it's "as is where is" so you want to pay less than the gold standard , much less. If it goes higher (and it often does) you don't want to be the one takeing it higher.
You see all kinds of wheeler dealers at autions. I once bid on a haybine that quickly went too high for me. A guy who got right up front like he was hot to bid never did. He watched who did bid and after the haybine was sold he approached an unsuccessful bidder and offered his haybine at home for what the bidder dropped out at. I bought it and used it for years.

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jhill52

01-29-2007 20:10:42




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 Re: Farm Auctions and how they are run? in reply to B. Abseck, 01-29-2007 16:23:35  
Another thing to watch for is auctioneers who also have a used equipment lot. Anything going cheap shows up on his lot Monday morning.



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msb

01-29-2007 19:05:05




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 Re: Farm Auctions and how they are run? in reply to B. Abseck, 01-29-2007 16:23:35  
Auctioneers love the bidder who raises the bid quickly.Some of the unscruplous ones will do like is said, pull a bid out of the air.The auctioneer calls it OLE MO--MOMENTUM.The way to stop that is bid slowly and without any pattern.They hate that because they know you are a savy bidder and that makes their work harder.If you are not sure what the bid is, not hesitate to ask the ringman or the auctioneer.

Purebred livestock auctioneers are the most notorious for using OLE MO aand the all time champ was an auctioneed by the name of Mark Pickle.I am sure he hated for me to show up at a sale.

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Howard H.

01-29-2007 18:29:54




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 Re: Farm Auctions and how they are run? in reply to B. Abseck, 01-29-2007 16:23:35  

Also - around here (west Texas), you need to listen if a pile is selling "one money" or "times the money". The first is the total for the whole pallet full, pile, whatever. The second is price times # of items...

I've seen several guys burned by that.

Also, never assume anything - I wound up with some 220 volt light fixtures one time - not realizing they weren't 110 volt.

Also, sometimes, if the auctioneer is just "pulling bids out of the air", there actually is a reserve on an item. I can't blame a seller for that...

If it is something you are really intent on - be sure and position yourself so one of the ringmen can see you easily. Also, get where you can hear real well.

It's really great fun once you get the hang of it.

HH

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Mark-in-Mi

01-29-2007 18:20:51




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 Re: Farm Auctions and how they are run? in reply to B. Abseck, 01-29-2007 16:23:35  
I don't go to any auction that has a buyers premium percentage added on.Mark



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John in Nebraska

01-29-2007 18:17:24




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 Re: Farm Auctions and how they are run? in reply to B. Abseck, 01-29-2007 16:23:35  
All good stuff here, AND after you sign in, and get that bidding number, DO NOT drop it, even when the sale is done, take it home, tear it up, burn it or eat it. If someone picks it up after you leave, and bids with it, YOU will pay for the item. Guard it just like your cash, I know a guy that had to buy a $3,000 dollar disc, that was sold after he left. John



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fixerupper

01-29-2007 17:18:21




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 Re: Farm Auctions and how they are run? in reply to B. Abseck, 01-29-2007 16:23:35  
At the farm auctions around here you register for a bidding number. The clerk could be in a little camper set up on the grounds or she/he could be in the garage or some other building. There is usually a 'clerk' or 'register' sign by the door but not always. Sometimes you have to hunt around to find the clerk. At some sales with more high dollar stuff they want you to have a letter from your bank to show the clerk but I think that's primarily for people who live a long way away from the sale. I've never been asked for one. At one sale I was at they were fingerprinting all of the bidders. Seems the auctioneer had previously been bit by someone who bought an expensive combine on a sale and then disappeared from sight with the combine without paying for it. Jim

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Gerald J.

01-29-2007 17:17:13




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 Re: Farm Auctions and how they are run? in reply to B. Abseck, 01-29-2007 16:23:35  
If the auctioneer personally knows you he may accept your final bid without a number, but most of the time he will insist on you having a bidder number. Most times auctioneers announce all the conditions before the sale begins and advertise with their PA on the sale site for bidders to be sure and get a bidder number. Most auctioneers demand identification and many want a bank account number and your phone number. Printed sale bills always say, "announcements at the time and place of the sale supercede any printed advertisements."

I've seen a very few nickle/dime bids, say under a few bucks, when the auctioneer has accepted cash payment to his clerk on the spot.

If you are talking big money, cash is always accepted, but most auctioneers want good checks with proof of identification so they can come after you if the check bounces.

When bids rise without there being visible bidders are suspect. Sometimes those come from phone in or preplaced bids, sometimes they are being invented on the spot. One time I bid $500 on a baler, instantly the auctioneer had 600 asking 700. I bid 700, instantly he had 800 asking 900. I told the ground man (with the cane) that my limit was $700. He made some hand signals to the auctioneer and all of a sudden he had $700 asking 800. I got it for $700. I was the only bidder. I remember that and don't go that auctioneer's auctions. I read recently where someone commented that if he was so good at pulling bids out of the air, you'd think he could pull bidder numbers out of the air too.

As posted below, you don't get to run the equipment like drive it. You may get to hear the engine run if it has one and starts. You have to do everything by visual inspection. Pay accordingly, set your price before you see the equipment, adjust according to what you can detect and then when the auctioneer wants you to go higher, turn and walk away. Many an auctioneer has seen my head shake "NO." Its the auctioneer's job to convince you to pay more than your limit. Its your job to pay as little as possible. Be sure its another buyer running the price up but still figure the worth of the equipment to you ahead of time and don't get pulled over that.

Gerald J.

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David Snipes

01-30-2007 07:59:24




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 Re: Farm Auctions and how they are run? in reply to Gerald J., 01-29-2007 17:17:13  
In Washington I have heard that being called "Salting the auction." I have seen the auctioneers ground men yell out when no one was bidding in order to raise the bid. I try to stay in a position where I can watch the crowd as well as bid. You have to consider auctioneers as slick used car salesmen until they prove otherwise. It is a lot of fun however.



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JK-NY

01-29-2007 17:12:27




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 Re: Farm Auctions and how they are run? in reply to B. Abseck, 01-29-2007 16:23:35  
Most machinery sales around here , you check in when you get there and get a number,which you have to show ID(drives liscence etc) to get. The auctioneer then has your name, address , ph # etc.When you bid and end up the high bidder you show the number , thats how they keep track of who got what and for how much .When you want to leave you go in and settle up. You are responsible for what you bought once you bought it. I suggest getting a friend that's been going to auctions for awhile to go to a few with you till you get the feel for it.Most auctions terms are cash or good check , some may take credit cards . If you are buying big dollar items and need financing ,that needs to be set up ahead of time. You are expected to settle up by the end of the sale unless you have made other arrangements.

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swms301

01-29-2007 16:36:13




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 Re: Farm Auctions and how they are run? in reply to B. Abseck, 01-29-2007 16:23:35  
Most auction have a registration/sign in procedure. Information about payment terms and removal is usually covered in the brochure, or in your registration package. Very rare to just show up and bid. At least that's my experience at construction equipment auctions. It helps to know who works for the auctioneer, who the sale is for, etc. Watch to see if the same people jump in to bid if prices stay low. Also find out if auction is reserved, or has buy back provisions. Look, listen, and learn.

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supergrumpy

01-29-2007 16:34:34




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 Re: Farm Auctions and how they are run? in reply to B. Abseck, 01-29-2007 16:23:35  
well, it depends

purpose of an auction is to sell lots of stuff at best price fast, some auctions are honest and some are rigged

one drawback of an auction from the buyers side is not being able to inspect/operate the item unless you can go there well ahead of time

you have to know how much something is worth and have the strenth of charactor to stop bidding when the price goes beyond sanity

IMHO

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MikeinKy

01-29-2007 17:09:41




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 Re: Farm Auctions and how they are run? in reply to supergrumpy, 01-29-2007 16:34:34  
Most farm auctions will take your personnal check or cash. Usually you need to sign up for a bidders number and show your ID to get it. Pretty informal. I like to see who is bidding against me, so I know I'm not bidding against my self. most auctioneers I have seen are honest, but not all.



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Aowner

01-31-2007 04:59:28




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 Re: Farm Auctions and how they are run? in reply to MikeinKy, 01-29-2007 17:09:41  
Went to a auction years ago and a truck driver for the qauction was bringing in a 4460 and 4020 John Deere. Later on I saw the saw truck driver and the guy helping him unload it bidding on both of these tractors. Have been to numerous sales where one piece of equipment will have 5 or 6 different numbers on it from the previous auctions.



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