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Going once … going twice … last call … SOLD! Auction in Georgia.

By
Real Estate Broker/Owner with Richard Weisser Realty

Going once … going twice … last call … SOLD! Auction in Georgia.The auctioneer’s gavel drops and the deal is done. But do you ever wonder what the auction profession is all about?

It is one of the most ancient ways of conducting a sale and determining a price. As the purest form of setting a true fair market value “on the spot,” auction can be one of the best methods for selling anything of value quickly.

But there is a lot more to auction than meets the eye. In the state of Georgia, auctioneers fall under the auspices of the Secretary of State and must be licensed to advertise, conduct, and to close a sale at auction.

In order to auction real property in GA, both an Auctioneer license and a Real Estate Broker license is required, not only by the principle auctioneer, but also by anyone (ring man or ring woman) accepting bids from attendees.

All auctions in Georgia are auctions with reserve by default. However, if an auction is advertised as “Absolute,” an auctioneer must accept any bid on the property. In addition, neither the seller nor anyone bidding on behalf of the seller may participate in an absolute auction.

And most importantly of all: When the gavel drops and the auctioneer cries “SOLD” the sale has become legally binding and both buyer and seller are obligated to perform.

If you have any questions regarding auction in your area, feel free to ask any auctioneer about how it works and if it might present a good alternative for you for selling your property or property that you have listed.

Auctioneers love to talk about auction.

After all, it’s our big mouths that got us into auction in the first place!

Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Great info Richard.  Interestingly, I had a bidder on an 'absolute' auction a few months ago.  We didn't win. Checking the county records, it doesn't appear to have sold.  Will need to see if my buyer wants to pursue this one.

Nov 22, 2011 12:40 AM
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Gabe...

I believe that Florida is one of those states in which auction is LESS restricted, but there are a number of reasons that a sale will not close.

It could very well have been legit and that the bidder forfeited the deposit.

Look at the terms and conditions of the auction. It should have a number of days in which a property may close.

Then again, the seller may have defaulted.

I would call the auctioneer and start asking questions.

Nov 22, 2011 12:47 AM
Carol-Ann Palmieri
RE/MAX Executive Realty, Al and Cal Realty Group - Franklin, MA
"Cal" the Real Estate Gal

Hi Richard.   I seen people buy things at auction that they normally wouldn't have.   Heat of the moment I suppose.  

Nov 22, 2011 12:48 AM
Alan May
Jameson Sotheby's International Realty - Evanston, IL
Home is where the hearth is.

I was unaware that you were licensed as an auctioneer.

Nov 22, 2011 01:09 AM
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Carol Ann...

Then the auctioneer has done a good job! Thanks.

Alan...

Believe it or not, in a state of nearly ten million people there are just over a thousand of us actively licensed. You gotta love those numbers! Thanks my friend.

Nov 22, 2011 01:18 AM
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Richard...

There is always the temptation to bring in a straw-man to bid up the price...I was interested to read "neither the seller nor anyone bidding on behalf of the seller may participate in an absolute auction." This keep a legitimate-ness to the process...just real buyers are going to bid. there are some very good rules enacted by your state.

Nov 22, 2011 01:21 AM
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Steve...

In addition, there must be a clear "intention to sell" in an absolute auction which means that an auction cannot be canceled because of low attendance or by polling the audience.

Nov 22, 2011 01:32 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Steve, love the last line of this post :-)  Have a wonderful holiday with your family and loved ones!

Nov 22, 2011 02:09 AM
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Hi Richard -

My Dad was one of the best Auctioneer ever and you're right it's complicated in more ways than one!  In fact he owned his own Auction company one of the largest in the state on NM.  He called right up until Alzheimer's took him too far down to do it any longer.  It was his love.  In fact the last sentence I heard him say about 3 months ago.  My wife and I were feeding him dinner and got him to auction off a cup of coffee.  I long for the days of hearing his deep, booming voice calling SOLD! 

Best regards from the Q

Nov 22, 2011 02:17 AM
Cindy Edwards
RE/MAX Checkmate - Johnson City, TN
CRS, GRI, PMN - Northeast Tennessee 423-677-6677

Auctions are a great way to sell distressed properties as well.  Great information about auctions in your state.  I know the rules do change state to state and it's important to be aware of your own. Thanks Richard, another great post.

John- I bet that is a memory that will last forever for you.

Nov 22, 2011 04:23 AM
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Kristin...

It is so true! Thanks so much!

John...

Wow, I never knew that auction was so near and dear to your family and your heart. I'll just bet your dad could have taught me a lot about electioneering!

Did he auction livestock, or cars, or just stuff? I can auction anything except cars (need a dealer's license,) livestock, (regulated by the USDA) and firearms.

Thanks for sharing with us.

Nov 22, 2011 09:38 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Richard, you are right about the selling of something of value on the spot, but many times it is not the highest possible price just the fastest

Nov 22, 2011 10:41 AM