RESOURCES

FAQs

Q.A restaurant closed in my town. Are you interested?
Yes, we are always interested in a possible sale. Please visit the Auction Referrals section of this site for more details.

Q.What forms of payment do you accept at your auctions?
We accept cash or a check accompanied by a bank letter of credit.

Q.What is a bank letter of credit?
A bank letter of credit is a document provided by your financial institution that guarantees you have funds available in your account to make purchases via check at auction. View an Example (PDF) or Download a Template (MS Word).

Q.When am I required to make payment for items that I have purchased?
All items must be paid for in full on sale day.

Q.How long do I have to remove items that I have purchased?
Grafe Auction Company makes every effort to give you ample amount of time to remove your equipment. The removal timeframe generally ranges from five to seven days. A removal schedule will be announced and posted on sale day. If you need more time to rig and remove your equipment we will try to work with our client or removal supervisor to accommodate your needs. Occasionally, due to issues beyond our control the timeframe for removal may be very limited. If there is a limited timeframe for removal we try to post the information within our brochures and on our web site.

Q.Will there be anyone onsite to watch or protect my equipment? Once the auctioneer has sold an item it becomes the sole responsibility of the buyer. Transfer of ownership occurs when the auctioneer says, "sold", even though the item may not be paid for. Once you have made a purchase you may begin taking items to your vehicle. It is recommended that you bring a second person with you on sale-day to protect your property. After a sale is completed the removal crew takes over. Even though receipts are checked and general security issues have been dealt with, it is not the responsibility of the removal crew to watch every door and all of the items at all times. Take care of your small items on sale day and try to get to your large items as soon as possible

Q.When can I preview the equipment?
We generally open the doors to an auction two hours prior to the start of a sale. If a specific preview day and time are being offered we will post this information within our brochures and web site.

Q.Do you charge sales tax at your auctions?
All applicable state, county and city sales taxes apply at our auctions. If you will be reselling the items that you purchase please bring a copy of your tax exemption certificate to the auction.

Q.What do I need to bring to register as a bidder at one of your auctions?
If you are paying with cash all you need to register is a valid driver's license. If you will be paying with a check please bring your drivers license and a bank letter of credit.

Q.I cannot make it to the sale in person, how can I bid on an item?
At each of our sales we offer absentee bidding. Further information is available by clicking on the "Absentee Bidding for this Sale" link on the general information page for each individual auction.

Q.Do you accept consignments at your auctions?
If you have items to sell we will make every effort to assist you. Please email a list of your items to info@grafeauction.com, include your contact information, the distance that you are willing to bring your items and your timeframe for selling these items. We will attempt to work your items into our upcoming auction schedule so that there is ample time to market and promote your items. On some occasions the owners of a particular location do not want items added their sale.

Q.What is a buyer's premium?
The buyer's premium is an advertised percentage added to the high bid to determine the total price to be paid by the buyer. If there is a 10% buyer's premium and an item sells for $1.00 the high bidder will pay $1.10 plus any applicable sales tax.

Glossary

Abbreviations

The following are common abbreviations that you may see within our listings or newspaper ads.

Lg. Qty = large quantity
Qty. =
quantity
s/c: =
self contained
SS: =
stainless steel
w/m: = wall-mount

Glossary

The following are common terms that you may read or hear regarding any auction.

Absentee Bid: A procedure which allows a bidder to participate in the bidding process without being physically present. Generally, a bidder submits an offer on an item prior to the auction. Absentee bids are usually handled under an established set of guidelines by the auctioneer or his representative. The particular rules and procedures of absentee bids are unique to each auction company.

Absentee Bidder: A person (or entity) who does not attend the sale but submits, in advance, a written or oral bid that is the top price he or she will pay for a given property.

Absolute Auction: An auction where the property is sold to the highest qualified bidder with no limiting conditions or amount. The seller may not bid personally or through an agent. Also known as an auction without reserve.

Agent: A person who acts for or in the place of another individual or entity by authority from them.

Appraisal: The act or process of estimating value.

"As Is": Selling the property without warranties as to the condition and/or the fitness of the property for a particular use. Buyers are solely responsible for examining and judging the property for their own protection. Otherwise known as "As Is, Where Is" and "In its Present Condition."

Auction: A method of selling property in a public forum through open and competitive bidding. Also referred to as: public auction, auction sale or sale.

Auction Block: The podium or raised platform where the auctioneer stands while conducting the auction. "Placing (an item) on the auction block" means to sell something at auction.

Auction Listing Agreement: A contract executed by the auctioneer and the seller which authorizes the auctioneer to conduct the auction and sets out the terms of the agreement and the rights and responsibilities of each party.

Auction Value: The price which a particular property brings in open competitive bidding at public auction.

Auction With Reserve: An auction in which the seller or his agent reserves the right to accept or decline any and all bids. A minimum acceptable price may or may not be disclosed and the seller reserves the right to accept or decline any bid within a specified time. The majority of Grafe Auction Company auctions are held without reserve.

Auction Without Reserve: An auction where the property is sold to the highest qualified bidder with no limiting conditions or amount. The seller may not bid personally or through an agent.

Auctioneer: The person whom the seller engages to direct, conduct, or be responsible for a sale by auction. This person may or may not actually call or cry the auction.

Bank Letter of Credit: A letter from a bank certifying that a named person is worthy of a given level of credit. Often requested from prospective bidders or buyers who are not paying with currency at auctions.

Bid: A prospective buyer's indication or offer of a price he or she will pay to purchase property at auction. Bids are usually in standardized increments established by the auctioneer.

Bid Rigging: The unlawful practice whereby two or more people agree not to bid against one another so as to deflate value.

Bidder Number: The number issued to each person who registers at an auction.

Bidder's Choice: A method of sale whereby the successful high bidder wins the right to choose a property or properties from a grouping of similar or like-kind properties. After the high bidder's selection, the property is deleted from the group, and the second round of bidding commences, with the high bidder in round two choosing a property, which is then deleted from the group and so on, until all properties are sold.

Broker Participation: An arrangement for third-party brokers to register potential bidders for properties being sold at auction for a commission paid by the owner of the property or the auction firm.

Buyer's Premium: An advertised percentage added to the high bid to determine the total price to be paid by the buyer.

Brochure: A publication advertising and describing the items available for sale at public auction, including photographs, item descriptions, and the terms and conditions of the sale.

Cashier: The person employed by Grafe Auction Company who does the accounting at an auction.

Clerk: The person employed by Grafe Auction Company who records what is sold and to whom and for what price.

Collusion: The unlawful practice whereby two or more people agree not to bid against one another so as to deflate value or when the auctioneer accepts a fictitious bid on behalf of the seller so as to manipulate or inflate the price of the property.

Commission: The fee charged to the seller by the auctioneer for providing services, usually a percentage of the gross selling price of the property established by contract (the listing agreement) prior to the auction.

Conditions of Sale: The legal terms that govern the conduct of an auction, including acceptable methods of payment, terms, buyer's premiums, possession, reserves and any other limiting factors of an auction. Usually included in published advertisements or announced by the auctioneer prior to the start of the auction.

Contract: An agreement between two or more persons or entities which creates or modifies a legal relationship.

Cooperating Broker: A real estate broker who registers a prospective buyer with Grafe Auction Company, in accordance with the terms and conditions for that auction. The broker is paid a commission only if his prospect is the high bidder and successfully closes on the property. Also known as a participating broker.

Due Diligence: The process of gathering information about the condition and legal status of assets to be sold.

Estate Sale: The sale of property left by a person at his or her death. An estate auction can involve the sale of personal and/or real property.

Listing Agreement: A contract executed by the auctioneer and the seller which authorizes the auctioneer to conduct the auction and sets out the terms of the agreement and the rights and responsibilities of each party.

Listing Broker: A real estate broker who has a listing on a property and cooperates with the auction company by allowing the auction agreement to supersede his/her listing agreement.

Lot: An item or grouping of items to be sold at auction.

Market Value: The highest price in terms of money which a property will bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.

Minimum Opening Bid: The lowest acceptable amount at which the bidding must commence.

Multi-Property Auction: A group of properties offered through a common promotional campaign. The properties to be auctioned may be owned by one seller or multiple sellers.

Multi-Seller Auction: Properties owned by many sellers, offered through a common promotional campaign are auctioned in a single event.

Opening Bid: The first bid offered by a bidder at an auction.

On-site Auction: An auction conducted on the premises of the property being sold.

Preview: Specified date and time property is available for prospective buyer viewing and audits. Also known as Open House or Inspection.

Reserve: The minimum price that a seller is willing to accept for a property to be sold at auction. Also known as the reserve price.

Reserve Auction: An auction in which the seller reserves the right to establish a reserve price, to accept or decline any and all bids or to withdraw the property at any time prior to the announcement of the completion of the sale by the auctioneer. See also Auction With Reserve.

Ringman/Ringperson: The employee of Grafe Auction Company responsible for assisting with the auction, most often watching the crowd for bids.

Sealed Bid: A method of sale utilized where confidential bids are submitted to be opened at a predetermined place and time. Not a true auction in that it does not allow for reaction from the competitive market place.

Seller: Entity that has legal possession, (ownership) of any interests, benefits or rights inherent to the real or personal property.

Terms: The period of time that an agreement is in effect.

Terms and Conditions: The printed rules of the auction and certain aspects of the Purchase & Sale Agreement that are read and/or distributed to potential bidders prior to an auction sale.

Tie Bids: When two or more bidders bid exactly the same amount at the same time and must be resolved by the auctioneer.

Times the Money: A method of sale where multiple items in one given lot are sold per piece multiplied by the number of pieces. For example: if a lot has five spoons which are to be sold five times the money and if the high bid is $1.00 the high bidder would pay $5.00 for the lot.

New Buyer Guide

Prior to Sale Day:

Prior to sale day, you should carefully review the auction brochure or web site information regarding the auction that you are interested in attending. If you are planning on using a check for the purchase of your items please visit your financial institution and obtain a bank letter of credit. If you are reselling the equipment that you purchase make sure that you bring along a copy of your tax exemption certificate. Arrange to have assistance on sale day and adequate transportation for your purchases.

Feel free to contact us if you have any questions prior to sale day. 800-328-5920 or info@grafeauction.com.

Sale Day:

Preview: Generally we open the doors to an auction location two hours prior to the start of a sale. If there is a specific preview date or time we will post it within our brochure or web site. Once you arrive onsite you may register for the auction or feel free to walk around and preview the equipment.

Registration: The registration process is where you obtain a bidder's number. Your bidder's number is used to identify you and the items that you purchase at auction. The registration process is very easy. There will be a counter set-up onsite with two or more people using computers to register buyers. If you arrive close to the start of the auction expect a line of people waiting to register. Once you are at the registration counter you will be asked for your driver's license, your method of payment and general contact information. If you are paying by check you will be asked for your bank letter of credit. If you plan on reselling your purchases you will be asked for a copy of your tax exemption certificate. When the registration process is complete you will be issued a bidder number. On the back of the bidder number there is a Bidder Contract, you will be asked to review and sign the back of your bidder number. After you have signed the contract, welcome to the auction, you are ready to bid.

Sale Start: Prior to the start of the sale the auctioneer will begin with opening comments. The auctioneer will review the auction procedure and the terms and conditions of the sale. The auctioneer will also answer questions and make general sale day comments. If you have any questions this is a good time to ask.

Items offered at all of our auctions have a lot number sticker affixed to them. The lot numbers begin with number 1 and work through the location in numerical order. We sell in numerical order at an average pace of 100 lots per hour. If you are interested in lot 300 you can be assured that it will be at least three hours before we get to the item. The lot numbers also specify how many pieces are in a given lot. For example, lot 12 may have 5 spoons, the 5 is noted on the lot number. If there are multiple pieces in a given lot that lot will be sold "times the money". If the high bid on the spoons is $1.00 it would be multiplied by 5 to arrive at $5.00 total for the lot.

The Auction: The auctioneer starts with lot number 1 and begins the process of selling. Along with the auctioneer there will be clerk who keeps track of the purchases and assistants who watch the crowd for bids. The auction pace is very fast, be prepared to place your bids. If you are having difficulties understanding the auctioneer seek assistance from one of the other employees onsite. Before long, you will understand the rhythm of the auction chant.

When you are ready to bid raise your bidder number or make contact with the auctioneer by raising your hand or nodding your head. Once you have become the high bidder on an item you are the new owner of that item. Ownership transfers when the auctioneer says, "sold". It is a good idea to protect your small items; you may collect and hold onto them or have someone take them to your vehicle.

Payment: All items must be paid for in full on sale day. When you are ready to make payment go back to the registration/cashier counter and present your bidder number.

Enjoy the auction! Feel free to contact us if you have any questions. 800-328-5920 or info@grafeauction.com.



JOIN OUR MAILING LIST

We’ll keep you in the loop for all future auctions!