We’ll be joining our Mecum Auctions friends at their 6th Annual August Gone Farmin’ Tractor Auction in Harrisburg, Pennsylvania on Friday, July 31, 2015 through Saturday, August 1, 2015. Come and see us at the Pennsylvania Farm Show Complex and Expo Center! Rachel of “Wrenching with Rachel” will be on hand, along with our free 2015 print catalogs and tractor repair tutorial DVDs. Be the first to stop at our booth and receive a free pink Steiner hat. Limited supply, one per attendee. Check out more auction details. See you at the auction!
Know Before you Bid: An Auctioneer’s Best Bidding Tips
For my last installment in this three-part series on antique tractor auctions, I’d like to share my best tips on exactly when and how to place your bids. As a professional auctioneer and a frequent buyer at tractor auctions, I’ve had plenty of time on both sides of the auction block. Here’s how to get the best deal at an antique tractor auction.
The auctioneer will often start things off by asking for a high opening bid – don’t take the bait. It is in your best interest for the bidding to start low and go slowly. If I’m placing the first bid, I usually start things out at about half of the tractor’s value. A bid like this is low enough to be a good starting point, but not so low that it would be an insult or a waste of time.
Auctioneers are in the business of selling things quickly, so they will usually try to drive the bidding in large increments. Do what you can to avoid this. You can get the auctioneer to take smaller increments by gesturing for “half,” or calling out or signaling the amount you are willing to bid. Bottom line: don’t let the auctioneer pressure you into moving too quickly.
For this reason, I find it helpful to stand right in front of the auctioneer or one of the bid spotters. I don’t see any reason to be shy about bidding – winks and nods are difficult for the auctioneer to interpret and make it hard for the auctioneer to work with me. I also think it’s a good thing for the people I’m bidding against to see me bid – the competition can often be scared off by a confident buyer.
Bidding openly can also be a protection against schilling. Schilling is a dishonest practice where auctioneers or their employees will place false bids to artificially drive up prices. Whenever possible, I like to know that I’m bidding against a real person. By bidding openly, I extend this same courtesy to others.
Pay attention to the pace of the other bidders, especially once things get down to just you and one or two others. People generally set a price in their head that they aren’t willing to cross, and are likely to stop bidding on that number. This stopping number is almost always predictable – something round and even, like $2,500 or $5,000. By being aware of these invisible thresholds, I’ve set my maximum bid just a little bit higher and purchased plenty of tractors for $2,600 or $5,100. This strategy works for sealed bid sales, too.
Finally, be aware that bids are legally considered a binding contract. Your winning bid will immediately be recorded by a clerk, and the auctioneer usually has some sort of a voice or video recorder running as a backup. When you win, be sure to hold your bidder number so that it can be clearly read aloud in order to prevent any errors.
Buying an antique tractor at an auction sale is a really fun experience. I hope that you get to experience the thrill for yourself soon!
Know Before You Bid: An Inside Look at an Auctioneer’s Chant
When I tell people that I’m a licensed auctioneer, the first question is always the same – “So, can you do that fast talking thing?” Each auctioneer’s chant is unique, and we’re so proud of them that we show off our chants at our annual conventions – we even have contests! Award-winning auctioneers practice for years to develop a chant that is both understandable and very fast.
If you are new to auctions, the auctioneer’s chant can be confusing at first. Spend some time listening, though, and you’ll catch on soon. A good chant is made up of filler words and numbers. Filler words can range from the basic “bidding now” to the rapid-fire “bada boom bada bing.” Don’t worry too much if you can’t understand the filler – it’s not the point, and auctioneers will often choose nonsense words to fill in the gaps anyways.
Focus on the numbers you hear. The number the auctioneer repeats the most is the one he’s asking people to bid. If you are really lost, attend your first sale with a veteran buyer who can help you. Never place a bid that you don’t fully understand!
Bidding usually starts with many potential buyers, but before long things will narrow down to just two interested folks, going back and forth with the high bid. Others are always invited to jump in, though. The auctioneer may signal that the bidding is coming to a close by asking the crowd “Going once? Going twice?”, “All in? All done.” or “If you’re done, I have to be”. If no one jumps in to offer a higher bid, that sale will close with the word “Gone” or “Sold,” and sometimes a banging gavel. The auctioneer will then repeat the item number, the bidder number, and final price for the clerk’s records.
All of this happens very quickly. Auctioneers are often paid on commission, and the more they sell (and at higher prices), the more money they make. On smaller lots, auctioneers will aspire to sell an item every 30-60 seconds. At large sales with hundreds of antique tractors, the gavel will usually fall every 45 seconds-2 minutes. Of course, at a smaller sale where one of two tractors are the main event, the auctioneer will slow things down and take his time selling.
In order to speed things up on smaller, similar items auctioneers will sometimes sell items on “choice.” This means that the crowd is bidding on a per-item price, and the winner can select as many items from the group at that per-item price as he wants. Then, the auctioneer will usually offer that price to the second place bidder, who gets a chance at any items he wants at that per-item price. If items are still left, the auctioneer will either repeat this process or sell the remaining items at one group price.
Auctioneers may also try grouping and ungrouping items to see what brings a better price. I see this happen most often with tractors that come with special extras, like wheel weights, a loader or dual wheels. The auctioneer might first see what bids he can get for the items separately – first the tractor, then the extras. He will then add the winning bids for all the items and ask the crowd for a higher bid for the whole package. As long as the auctioneer explains this process before any bidding starts, this is an ethical way for him to sell these items. Be careful, though, before you bid on something sold in this manner – if the extras are attached to the tractor and sell seperately, it will often be up to you and the other buyer to figure out how to get them off!
You’ll find auction-goers to be a friendly group, so don’t be afraid to ask questions along the way if you don’t understand what is going on. A good auctioneer will also do his part to explain unfamiliar things along the way – auctioneers want people to bid confidently! Armed with the knowledge we’ve covered here, you are well on your way to becoming a capable buyer.
Next time I’ll cover some bidding strategies and techniques you can use to get the best deal on auction day. Until then – happy bidding!