A little lesson in Minimum Bids

A little lesson in minimum bids....

We had a call from a bidder today who was upset because we wouldn't accept a $1 bid on a storage unit. In fact, he insisted that we were required to accept his bid. When he was informed otherwise, he insisted that we were required to post a notice that there is a reserve bid. 

No, we were not. Here's why:

By law, specifically the Uniform Commercial Code (UCC), all auctions are considered to be "with reserve", meaning that they all have a minimum bid. The exception is when an auction is advertised as "absolute". 

A reserve auction means the seller can accept or reject any or all bids, at any time, even after the bidding has begun. The seller (or his agent, the auctioneer), determines the bidding increments. If we want to take bids in $25 increments, or $25,000 increments, it's our call. 

There is no requirement to disclose a reserve bid, post it, announce it, or list it. 

On the other hand, an absolute auction is just that... absolute. If advertised as absolute, once the bidding starts, the auctioneer is required to sell the item to the highest bidder, regardless of price. The lot may not be withdrawn, and the auctioneer must accept all bids. 

Storage auctions are "with reserve". The auctioneer can accept or reject any bid, at any time, without any notice, at his or her discretion. 

So, at Schur Success Auctions, we won't accept your $1 bid. It just won't happen. Can you imagine how long it would take to sell storage units if we went one dollar at a time? 

It might be nice to get a storage unit for a dollar. But it won't happen with us. 

Questions? Please let us know.