Auction Services Proposal

Exclusively Prepared For You!

Matthew Price, Auctioneer & Realtor®
Fuquay Varina, NC 27526
(919) 614-6288 Cell  |  (919) 285-3283 Fax
matt.price@ebbids.com
www.ebbids.com

Introduction Letter



Matthew Price
Auctioneer & Real Estate Broker
Fuquay Varina, NC 27526
(919) 614-6288 Cell
matt.price@ebbids.com
www.ebbids.com

Sunday, October 27, 2024

Good Afternoon,

It was great to speak with you the today, it was a great step back into the past, and it was great to walk through and see your collections.

We have been in this business for twenty-two years and we can proudly say that we have seen the birth of eBay, and revealed with the birth of new venues – as they have grown – we have grown because of our relentless drive to meet our clients’ needs. With our ability to tap into some of the highest honored and celebrated talent, we are able to handle any size sale from Personal Property to Real Estate. 

In the following proposal, we will show you a broad spectrum of advertising and auction services that will expose your items to as many people as possible, giving the best return on your investment.   This includes a mix of online and brochure advertising.

As you see in the following proposal, we provide a broad spectrum of services that exposes your sale to as many people as possible, giving you the best return on your investment.

The marketing will include the following:

  • A strong social media presence in social media sites including Facebook, AuctionZip.com, GotoAuction.com, Twitter, Google and our website;
  • Online marketing through our extensive email lists of 60,291+ buyers and strategic partner email lists;
  • An auction sign and directional signs placed out on the end of the road as well as on the property to give clients direction to the auction.
  • Culminating with the hosting of all property information on our website for easy access by interested parties.

We collect and compare past auction campaign marketing metrics and use the data to transform the information into insight. Because of this, we ensure the effective use of marketing dollars. This insight includes that fact that newspaper marketing is ineffective at targeting interested parties.

Far more effective is the implementation of geotargeted social media campaigns. In fact, our analysis reveals social media use drives over seven times as many unique visitors to a project on our website compared to traditional newsprint marketing.

It is important that our marketing disrupt the normal routines of potential consumers. Direct mail will disrupt mailboxes, social media will disrupt online congregation points, signage will be perpendicular to roadways to disrupt a line of sight, and email will disrupt a person’s inbox.  

It would be our pleasure to serve you in creating a personalized auction marketing solution to satisfy your needs using our marketing expertise. I would like to follow up with you next Tuesday to answer any questions or advise you further in the process. You may also learn more about our company and services by logging on to our website: www.ebbids.com.

Unless you have any more questions or concerns, I think we’re ready to get started.  I look forward to working with you.  We have included the contract for your review and signature when you are ready, so we can begin the process.

Please let me know if you have any questions.

Yours sincerely,

Matthew Price, AMM
Auctioneer & Real Estate Broker
(919) 614-6288
matt.price@ebbids.com

Property Evaluation

The personal property identified in our initial discussion, including personal property in the house including:

  • Real Estate
  • Antiques
  • Art
  • Books
  • Clothing
  • Collectibles
  • Computers
  • Dining
  • Electronics
  • Farm Implements
  • Sports Gear
  • Health & Fitness
  • Homegoods
  • Jewelry
  • Farm Equipment and Vehicles
  • Memorabilia
  • Toys

Types of Auctions


Absolute Auction

Absolute Auction means highest bid wins, regardless of price. The typical result? More money for the seller because of the competitive nature of bidding. The competition typically heats up most intensely at Absolute Auctions because bidders know that by besting a rival across the room or online, the property can be theirs. But of course, other bidders have the same strategy and desire. Absolute Auctions typically get the most bidding. For the seller, the risk associated with an Absolute Auction is greater than the other types of auctions, but so is the potential reward.

Minimum Bid Auction

Minimum Bid Auctions begin at a minimum price established by the seller. Bidding must begin at least at that minimum before there can eventually be a sale. The minimum bid is published and announced by the auctioneer at the start of bidding for that particular property. These auctions offer a certain level of safety to the seller but are not usually as attractive to buyers as an Absolute Auction. A key strategy for a Minimum Bid Auction is for the seller to set the minimum bid low enough to attract the interest of buyers. Setting the minimum bid too high will discourage initial bidding.

Reserve Auction

Reserve Auctions allows the seller to accept, reject or counter the “winning” bid, for any reason. Sellers typically make this decision before the auction event ends. This gives sellers protection so their properties will not be sold below what they consider acceptable. However, sellers should be aware that Reserve Auctions typically generate the least amount of interest among potential buyers, because buyers know their “winning” bid can ultimately be rejected.   We do not recommend this, as our experience shows anything with a reserve does not sell and later is the responsibility of the seller.

Marketing Plan

Means of Advertising

  • Professional signs indicating location, time and date of sale.
  • Creation of a Brochure Graphic that has items situated like a brochure graphic for social media.
  • Variety of different advertising on Facebook, Instagram, and other social media sites (Twitter, etc.), advertised across the nation.
  • Color pictures with gallery on AuctionZip and GotoAuction
  • Staging of products prior to auction for sale day.

Plan of Action

  • As soon as contract is signed, initial advertisement can be placed.
  • The Initial AuctionZip and GotoAuction advertisements will be placed. With rough pictures for the auction
  • As photos are taken they will be placed in the gallery.
  • Directional Signage will be placed at the end of the road, and on property.
  • We will then start the process of Facebook, Instagram and other social media advertising.

Support System

  • Our auction staff consists of full-time Licensed Auctioneers, clerking staff, auction manager & support help for auction day.
  • Twenty-four hour answering service for after hour calls.
  • Voice Mail, email support
  • Professional photos & virtual tours for large auctions.

Our normal marketing process begins 2-3 months in front of the event.   We send initial marketing materials (Posters, Brochures, AuctionZip & Gotoauction, and initial online marketing on Instagram and Facebook.

During this time we are taking photographs and updating the online marketing as we go.  For the online listing sites, we utilize the gallery feature to highlight all of the items.

Two weeks to one month out, we begin the email campaign first as a save the date, then continue to send one to two a week up until the date of the auction.    During this period, we will start to take online bids as absentee bids.   Those items that are bid on whatever the bid is up to online, will start the bidding at that level.   Say for instance, an item is at $1,000 online – we will open the bidding at that $1,000 and go up by a factor until bidding is exhausted.

Same Day Marketing.  There are two forms of thought.  First same day marketing is scheduled emails to client list the night before (about 1:00 AM) and then one at 8:00 AM.  All of the onsite marketing will be still available.

When we get to a point in the sale where we know a large dollar item is, we will start the bidding high.  An example is a Cargo Trailer that we believe is worth $1,000 we will start at $1,500 and go down until we get a bid.   Once the bidding has started we will work them up until we get to that $1,000.  This kind of psychological marketing allows us to be able to get the best money for the items.

Marketing Timeline

How long does it take?

On average, 4 to 8 weeks are needed for site preparation (tents, chairs, logistics, parking, etc.) plus any marketing such as print and online advertising, including cataloging and picture taking.

Seller’s Responsibilities 

Your responsibilities as the seller help market the property to gain the best possible price.  These include providing:

  • Any information on the property that may help or hinder a successful sale.
  • Title information.  If you have paid off any notes or liens against the personal property, any documentation helps with marketing.
  • Property descriptions.  If you have knowledge of the particular piece such as a history, it always helps.
  • Any appraisals on personal property that can be used to increase or substantiate additional value.
  • Marketing expenses
  • Information about previous attempts of marketing and the results.
  • Disclosures of known defects
  • Availability for showings or previews

If you are unable to obtain information or unsure of the process:

  • Seek advice during the process from your auction professional
  • Refer all inquiries to your auction professional
  • Be realistic about the value of the property (ask for sources from your auction professional)

Auctioneer Responsibilities

  • Ensure that all of the Sellers needs are met
  • Determines the objectives of the auction sale
  • Uses an automated tasks management system for quality assurance
  • Auction professionals inspect the assets for auction
  • If the estate requires to be moved, sets up the labor and trucks to pick up the auction items.
  • Meets with planning and development offices, planning boards, surveyors, attorneys, and potential buyers to prepare for an auction (Real Estate)
  • Tours the local community and neighborhood
  • Speaks with Home Owners Associations on Signage and Parking Options
  • Works with you to determine selling features
  • Works closely with their in-house advertisement team to create a unique marketing plan that may include local, regional, or national media, radio, brochures for direct mail, trade journals, signs, Open houses or previews, websites, social media, and email campaigns
  • Provides the seller with leads, inquiries and other marketing results
  • Provides the seller with proof of auction marketing including all electronic medias
  • Prepares an auction catalog of assets for auction
  • Photographs and videos of the property for auction
  • Handles all inquiries to free up the sellers time
  • Works with the seller to determine what is the best auction day and location
  • Conducts the auction, and has bid assistants for online and live bidding
  • Assist in follow-up and closing the transaction in less than 30 days.
  • Works with the closing attorney and title companies (Real Estate)

Commission Structure

  • 15% commission on personal property less than $5,000
  • 10% commission on personal property over $5,000
  • $300 per additional auctioneer per 8 hour period, which ever is greater.
  • 4% commission on real estate less than $800,000
  • 2% commission on Real Estate over $800,000
  • 2.4% Buyers Agency Commission (Buyer Paid)
  • 10% Buyers Fee (if by cash)
  • 15% Buyers Fee (if paid by credit card)
  • 20% Buyers Fee (Online Sales Only)
  • $1,500 Auction Advertising and Labor for setup.

The Buyers fees are costs that are paid by the buyer to assist in the costs of the event and for other assistance and help during auction day. The seller agrees to pay the auctioneer those fees including expenses and commission as the total commission. Auction help also provides for buyer assistance to be tipped by the buyer in loading.

The Time Frame for the auction is 12 weeks from today starting at 10:00 AM until completion.  Times to set up and to catalog will be agreed on by the owner.  Restaurant Equipment auctions online or live happen during the week, closing Thursdays. Estates and Personal Property Live Auctions close Saturday’s, with Online Estate Sales ending Tuesdays.

Support Materials

The Following Materials have been used for Successful Auctions. Fishing Ads, Real Estate, Email, and Printed Flyers are presented.

Our Contract is simple, 12 point font

Agreement Dated: __________________________________________________

                                               
RE: _____________________________________________________________________________________

Owners: _________________________________________________________________________________

Address:   ________________________________________________________________________________
City:  ________________________________________________State: ______  Zip Code: ______________ Phone:  _________________________________ Fax: _________________ Sec. Phone: _______________ Email:                                            ______________________________________________________________________________________
WITNESSETH

This agreement is by and between the above named person(s), hereinafter called “Seller(s)” and Matthew Price, Auctioneer & Real Estate Broker, hereinafter called “Auctioneer”.

The Seller and Auctioneer do hereby covenant and agree that the Seller shall employ the professional services of the Auctioneer to sell the personal property of the Seller by the terms and conditions of this Agreement and outlined as follows:

  1. OFFER AND ACCEPTANCE.
    • The terms of this Contract, once executed, shall represent a binding contract between Seller and Auctioneer.The Auctioneer agrees to continue to hold license and be part of the North Carolina recovery fund during the time of auction.If at any time during the existence of the contract one of its provisions is determined to be or to have become invalid, illegal or unenforceable, the validity, legality and enforce ability of the remaining provisions of the contract shall not in any way be affected or impaired.Seller understands that once contract is signed, the Auctioneer is in charge until auction is completed.
    • Seller acknowledges that Auctioneer and /or his agent(s) cannot accurately predict the price the property will bring at auction and Seller further acknowledges that Auctioneer and/or his agent(s)have not made any such assurances or predictions of price to the Seller or his/her agent(s).
  2. EXCLUSIVE AUCTION AGREEMENT:
    • Seller hereby grants to Auctioneer the exclusive and irrevocable right and privilege on behalf of the Seller to offer for sale personal property.Seller agrees to turn over all combinations, keys, or other security codes and methods to Auctioneer at contract signing.  The property is to remain closed to all persons and entities for the exception of the auctioneer and his staff.The Auctioneer does not recognize any verbal promises made by the seller to any other individual or entity.The Auctioneers does not recognize any person or firm’s verbal or written promises or demands that are made and or written if the parties are not authorized to make said promises or demands.In the case of Executor ship or Estate Administration, Auctioneer shall only communicate with the duly authorized and sworn in representative of the Estate.  Seller agrees to provide Letters of Testamentary as evidence.
    • Seller shall not attempt to register for the sale for the sake of bidding against other bidders to intentionally raise bids higher.  ($250,000 fine & 10 years in prison)
  3. INVENTORY:
    • Seller shall deliver to Auctioneer a complete inventory listing all items to be sold at auction. No item shall be added, withdrawn, or sold from said inventory by Seller or Sellers representatives prior to the auction.
    • If seller does sell or withdraw any item from inventory, the Seller shall present auctioneer the full commission on the item to be added to Auctioneers commission for the entire sale.  The Auctioneer shall determine the items value based on previous sales.
  4. TITLE:
    • Seller guarantees that all inventory to be sold at Auction is free and clear of all liens and encumbrances of any kind whatsoever.The seller agrees to present to the Auctioneer any and all documentation pertaining all liens and encumbrances so the lien holder can be contacted prior to the sale.If the seller cannot guarantee property free and clear of encumbrances, the Seller must document the liens below:
    • Item                            Lein Holder                                Contact Info & Unpaid Balance
    • _________________________________________________________________________________
  5. METHODOLOGY:
    • All inventory will be sold at (   LIVE  / ONLINE   ) auction.All inventory is to be sold at “Absolute Auction” to the highest bidder(s) without restriction, reserve or minimum as to price(s).If the Seller requires a Reserve for any property, the auctioneer will charge a 7% buy back fee, in addition to the commission at the Reserve rate if the property does not sell.Auctioneer complies with all Federal and State rules and regulations relating to the purchasing, registration and shipping of firearms.

    • A Bidder is required to provide appropriate documents and the payment of associated fees, if any. Bidder is responsible for providing a shipping address that is suitable for the receipt of a firearm.If the bidder for firearms is disqualified to purchase firearms for any reason, the item will be placed up for sale using the method agreed in this contract. If the firearm has been purchased and has been paid for, the bidder shall forfeit payment, and the item will be resold at the next available auction sale.

    • If the seller cancels this contract for any reason, the seller agrees to pay the auctioneer a $1,500 cancellation fee, plus any marketing and labor that has been completed to date.

    • Auctioneer will take absentee bids and will start the bidding at the absentee’s highest recorded bid. If in the case of bids online, auctioneer considers those a hard bid.

    • The auction will be held in accordance with the North Carolina Auction Law 85B and the Uniform Commercial Code UCC 2-328.

    • The Auctioneer will retain a complete accounting and file concerning this auction and any private sales for 2 years, as adopted by State Law.
  6. ADVERTISING:
    • Seller agrees to pay for all advertising expenses necessary to promote Seller’s Auction.The Auctioneer will require advertising deposit of $1,500 on signature of the contract.   Article V. Section b. required ( YES    NO  )  Auctioneer Initials:  ________________  )The Amount of Auction expenses not to exceed:  $   _____________________________Seller will advance the advertising expenses, and records of expenditures will be retained.

    • Auctioneer will advertise auction on their website, AuctionZip, Proxibid, Auctioneers Association of North Carolina, and National Auctioneers Association sites.
  7. COMMISSION:
    • Seller agrees to pay the Auctioneer for his services a commission of the approved schedule.

    • Auctioneer shall collect a Buyers Premium as per the Buyers Fee Schedule, which will become part of the Auctioneer’s total commission

    • Each online lot will have a $1.00 seller fee for preparation and photography.

    • Owner further agrees that all commission and fees due for said auction shall be deducted from the gross proceeds realized from the said auction before the payment and satisfaction of any liens and encumbrances

    • Sales Tax WILL be charged for this auction.  Sales Taxes collected will be remitted by the Auctioneer to the North Carolina Department of Revenue.
  8. EXPENSES
  • Seller agrees to pay for the following expenses for the auction as following:
    • Advertising Expense: ___________________   Labor Expense: ____________________
    • Storage Expemses: _____________________  Truck Rental: ______________________
  • SITE
    • The site of the auction shall be: ____________________________________________________If site is not available, Seller is responsible for the cost of rental of venue, and any related expenses as above under “VII. Expenses”
  • TIME
    • The auction shall be conducted on: 
    • (Day) _________________ (Date) _________________ (Hour) _________________ 
    • In the case of rain or inclement weather, the date will be moved to
    • (Day) _________________ (Date) _________________ (Hour) _________________

  • PROCEEDS
    • The auction proceeds will be placed in the Auctioneers Escrow account in which a certified check will be issued to the Seller at the time of closing.
    • Any interest that is earned on the account will become the Auctioneers and used for fees for maintenance on the account.
    • This auction contract will terminate at the time the closing statement has been delivered to the owners or 30 days after the close of the auction unless there is a dispute, in which it will be delivered at the time that the court has presented a certificate of resolution, or certified letters of resolution has been sent to the auctioneer.
    • At the time of the settlement delivery and cashing of the proceeds check, the contract is thereby considered terminated.
    • The responsibility for bad checks, debts, and unpaid auction items shall fall on the Auctioneer, in which the Auctioneer will charge $50 to the buyer for collection actions, and charge any and all fees to the buyer for legal collection action.
  • PROPERTY TO BE SOLD
    • The Property to be sold is the Personal Property or Chattels of the Address listed under “Site”
    • This includes all items inside and outside that is not part of the real estate.
    • Automobiles, Tractors, and other implements are included in this sale.
  • TERMS AND CONDITIONS
    • All auction participants shall be 18 years of age or older.
    • Any and all guns shall be removed from the property and taken to a trusted gun shop for processing.
    • Seller assumes insurance responsibility for the contents of the property at all times before, during and after the auction.
    • All items are AS-IS, WHERE-IS with no warranty, expressed or implied.
    • Seller shall provide power for the equipment.
    • It is the Bidder’s responsibility and obligation to have the lots fully insured while in their possession. Bidder assumes any and all RISK OF LOSS once th lot(s) have been deemed sold to the bidder.
    • Auctioneer and staff will be allowed to bid on property as long as they are willing to pay for the property prior to closing and disbursement.

  • SIGNATURES
    • WE HAVE READ THE ENTIRE CONTENTS OF THIS AGREEMENT, UNDERSTANDING FULLY THE CONTENTS THEREOF AND ACKNOWLEDGE RECEIPT OF A COPY OF THE SAME. WE ARE NOT RELYING UPON VERBAL STATEMENTS CONTAINEED HEREIN OR THEREOF. 
  • SELLER or EXECUTOR/EXECUTRIX or REPRESENTATIVE (Not the Delegate above)
    • Print Name: ______________________________
    • Signature:  _______________________________
    • Date:  ___________________________________ 
  • Auctioneer/Auction Staff Signature.
    • Print Name: ______________________________
    • Signature:  _______________________________
    • Date:  ___________________________________