Category Archives: Uncategorized

10 ways auction professionals violate licensing laws

Darron Meares, CAI, BAS, MPPA, presented “The Top 10 Ways to be Disciplined” on behalf of the National Auctioneers License Law Officials Association (NALLOA) on July 19 during Conference and Show in Spokane, Wash.

Auctioneers can find themselves in hot water from state licensing boards if they make these auction law violations:

•    Using money in an escrow account for personal use, or, as Meares describes it, commingling of restricted funds
•    Misrepresenting what is being sold; for example, not mentioning that a car had major water damage
•    Advertising an auction incorrectly, such as marketing an auction as absolute when it is not
•    Allowing unlicensed bid callers to sell items
•    Conducting an auction without a license
•    Letting a license lapse
•    Failing to meet continuing education requirements
•    Violating the Uniform Commercial Code, which prevents Auctioneers from doing things such as opening up tie bids and letting sellers bid on their own items
•    Using the term “absolute” incorrectly, as Meares says he has seen instances where auctions are advertised as absolute over a certain price point or only some items in a sale are without reserve in an auction advertised as absolute
•    Not providing buyers with full disclosure

The group’s presentation provided two hours of continuing education credit. NALLOA’s business meeting followed the session.

NALLOA is a membership organization comprised of 18 licensing board members and 52 associate members. It serves to improve reciprocity and make it easier for Auctioneers to obtain licensing.


Leave a comment

Filed under Uncategorized

NAA members select leaders

This slideshow requires JavaScript.

National Auctioneers Association members affirmed by acclamation the appointment of Paul C. Behr, CAI, BAS, as the organization’s Vice President during the NAA and National Auctioneers Foundation’s Annual Business Meeting and Election on July 19 at Conference and Show in Spokane, Wash.

Before he was voted into the position, Behr told NAA members that the association was a strong, vibrant and fiscally sound organization. He also said he plans to be an inclusive leader who will work to welcome all auction professionals into the association.

Also during the morning event, NAA members chose Devin Ford, CAI, CES, and Terri Walker, CAI, BAS, CES, as new Directors for the association. Ford had 259 votes, and Walker received 202.

Ford describes himself as a workhorse who will consistently put his best efforts toward serving members. He says the NAA has a rich tradition of integrity, professionalism and innovation.

Members have selflessly shared ideas and advice with one another throughout the NAA’s history. He says education and technology should be a top priority for the association.

“We have big shoes to fill, but I passionately believe that if we respect and learn from our past, if we are good stewards of our present, the greatest days of the National Auctioneers Association are ahead,” Ford said before he became Director.

Before the election, Walker said she would focus on promoting the auction method and serving NAA members.

“We’re in for some challenging times,” she says. “We’re in for some great changes. We have a Board that is already in place that is excited about changes. They’re looking for the betterment of the Auctioneer. I, too, am looking for that.”

In other NAA news during the Business Meeting, Outgoing President Christie King, CAI, AARE, BAS, announced the Board of Directors had voted during its July 17 meeting to approve the following:

•    Creating one class of membership that provides all members the right to vote in NAA elections
•    A reduction in Education Institute Trustee terms from four to three years
•    The elimination of the Candidate Information Review Committee and establishment of a Nominating Committee

Also, King announced the 2014 NAA Conference and Show will take place in Louisville, Ky.

Auctioneers Foundation

In addition, the NAF affirmed its entire slate of leaders for its 2012-2013 Board of Trustees.

Randy Ruhter is NAF President; Sandy Alderfer, CAI, MPPA, is Vice President; and new Trustees are John Dixon, CAI; Lonny McCurdy, AARE; and Randy Wells, CAI, AARE, BAS, CES, GPPA.

Ruhter describes the relationship between the NAA and NAF as strong, and he says he is proud of how the organizations have worked together.

“I hope that in the next year we can form an even stronger bond,” he said during the meeting. “We both have a common mission in serving you: the auction professionals. During the next year with NAF, I hope to improve our fundraising efforts by extending the online auction. I hope that we continue to recognize that we are successful because of you: our donors.”

Leave a comment

Filed under Uncategorized

Spokane sets the stage for Conference and Show 2012

This slideshow requires JavaScript.

Leave a comment

Filed under Uncategorized

Considering absorption in equipment values

Jack Young ASA, CPA

The concept of absorption is used relatively often in real estate appraisals and the same concept, known as “blockage,” is well-documented in the art valuation world, particularly in tax-related appraisals.

The term “blockage” — used by the IRS — derives from issues related to selling a large block of stock and seeing the related market decline. Equipment Auctioneers, whether familiar with the term or not, certainly see the same effect when selling a high volume of similar equipment, such as a fleet of Peterbilt trucks or a yard full of John Deere backhoes. In the equipment appraisal profession, though, absorption is often underused.

Kyle Martin, Supervisory Estate Tax Attorney with the Internal Revenue Service in Oakland, Calif., has stated in public meetings that, in fact, underuse of blockage is one of the more common mistakes he sees in reviewing estate appraisals.

Defining absorption

So, what is absorption, and when is it appropriate to consider absorption in equipment valuation?

Absorption is essentially an effect of the basic economic law of supply and demand, which states that the greater the supply and the lower the demand, the lower the price will be. Using the concept of absorption in valuing equipment is a way to take into account the length of time needed for the assets to be absorbed by the current market and at a price. The question that needs to be asked, when considering whether absorption is a factor in equipment appraisals, is this: “Are there enough ready and able buyers willing to pay full price if the items were offered for sale at the same time?”

While you may not know the answer to that question, just asking it improves the quality of the equipment appraisal work being done. If you’re not sure, find someone to ask. Your creditable source may be a used equipment dealer, another Auctioneer, or an expert in the particular industry. These are the same folks who can help you formulate your absorption rate calculation. For instance, in a recent equipment appraisal, I was researching values on propane tanks — values that are extremely price/volume sensitive.


In talking with industry experts, it was determined that if the number of propane tanks in question were released into the used tank market at the same time, the result would be a 50 percent reduction in value. In light of this information, and given the fact that we were opining on the fair market value, we decreased the opinion of value on the tanks by 50 percent to account for the negative effect that would occur if this volume of tanks were to appear on the market at the same or relatively same time.

In the seminal art tax case in which blockage was first applied as a valuation concept, the agreed upon discount was 37 percent. In perhaps the most famous art valuation tax case — Estate of Georgia T. O’Keefe v. Commissioner — the executors of the estate sought a 75 percent discount in value, arguing that monetizing the estate would “flood the market” and reduce the instant fair market value. The court conceded a 50 percent discount on the collection’s undiscounted valuation of $36.4 million.

While most equipment appraisers may not be applying discounts to valuations in the millions of dollars, even smaller estates can benefit from the consideration of absorption. In a case involving gift tax, for example, parents were transferring assets of a very large farming operation to their heirs. The operation included 93 tractors and 500 miles of irrigation pipe. After doing the appropriate research, I established absorption discounts for each of these two categories.

When calculating absorption discounts for opinions of values, the critical elements of research are the following:

1. Actual past cases in a related industry (often hard to locate)
2. Creditable, independent industry experts

Support your results

Just as important is the process by which absorption is referenced within the written valuation report. Because absorption is not a commonly used or well understood concept, the narrative report needs to explain clearly and thoroughly why the concept of absorption is being used, how the absorption discount was researched and how it is being applied to the assets being appraised. In addition, be sure that your work file contains all the documentation needed to support your results.

As more and more equipment appraisers become familiar with and confident in the appropriate and well researched use of absorption discounts in their valuations, we will be doing our clients, and the equipment appraisal profession at large, a great service by bringing this valuable and underused tool into wide-spread use.

Jack Young is an Accredited Senior Appraiser (ASA) of the American Society of Appraisers with a focus in Machinery and Equipment. He is also a Certified Public Accountant (CPA). His experience in auditing, accounting, financial analysis and auctioneering provides a strong base for the asset valuation concepts embraced by the Uniform Standards of Professional Appraisal Practice (USPAP) and the appraisal industry today. Jack is the owner of NorCal Valuation (, a machinery and equipment appraisal company serving the Northern California area.

Leave a comment

Filed under Uncategorized

Creating conversations: Good things happen when people talk to each other

(This column was first published in the May issue of Auctioneer magazine. Part one of a two-part column)

By Carl Carter, APR

I’ve always been intrigued by street preachers. There’s one who sets up shop on the shoulder of a four-lane near my office and talks into a bullhorn several afternoons a week to people who are often zipping by at 40 miles per hour. As many times as I’ve passed by him, I’ve never once seen him having a conversation. He just preaches away.

Most of us have a little “street preacher” in us. We need to get out the word about our next auction. Or we want to tell people what great Auctioneers we are so they’ll let us sell their assets.

So we collect a lot of names and addresses and send people stuff. Brochures. Newsletters. E-mail blasts. We set up Facebook pages and dump everything into them. We set up Twitter accounts and post links to our websites, then we disappear.

Then we whine about how nothing seems to be working.

It’s because we’re not really having conversations. We’re street preaching.

Think about all the things you hear and read, and what prompts you to respond. Let’s say you get an e-mail — complete with graphics and fancy layout — announcing that Ames Assets has just hired a new account executive, and that they’ve got a catalog of rare antiques for interior designers and other firms just like yours.

But you know (because you send out email blasts, too) that the sender hasn’t given a single thought to your business. They may not even know you exist as anything other than an e-mail address they got somewhere along the way.

But suppose you get a simple e-mail like this:

“We met recently at the Mideast Antique Show, and I believe you mentioned that you were looking for more Arts & Crafts and Craftsman pieces. I just settled in as a broker with Ames Assets, and we have a couple of West Coast suppliers who have some collections they’re trying to move, including some Greene & Greene and Stickley originals. Would this be of interest to you?”

It just might.

Sure, you can send your email blast to 1,000 people faster than you can reach out to a couple personally. But one good conversation beats 1,000 cars driving by at 40 miles per hour.

Since everybody seems to be hanging out on Facebook and Twitter these days, it makes sense to go there for some good conversations that can lead to business. But there again, you need to make it personal. That starts with actually investing some time finding people who need your services, or who might be interested in bidding on the type assets you sell (Hint: They probably aren’t your cousins and childhood buddies).

There’s a right and wrong way to use social media, and it’s too big a topic for this column. But we’ll talk more about it next month. Meanwhile, my best advice is to look for groups and individuals with compatible interests. For example, I do a lot of work with farmland auctions, so I searched Twitter for posts that had #agriculture and similar tags. I found a number of editors of agriculture publications that I’d already had dealings with, opening the way to strike up conversations leading to articles about my Auctioneer clients.

When using social media, just remember to keep the “social” in it. It’s rude to just go in, post promotional messages and leave without speaking. That’s the equivalent of walking into a Chamber of Commerce mixer, throwing a bunch of brochures in the air, and walking out.

Carl Carter is president of NewMediaRules Communications, which has provided public relations and marketing communications services to auction companies throughout the United States since 1994.

Leave a comment

Filed under Uncategorized

Former IAC winner becomes first female to take top spot in auto competition

Cheri Boots-Sutton won the 2012 World Automobile Auctioneers Championship on March 30 at Sanford Auto Dealers Exchange, Sanford, Fla.

In her 11th attempt at the title, she was the first woman to win the competition, which featured 78 contestants, according to a news release. Boots-Sutton won the National Auctioneers Association’s International Auctioneer Championship in 1999.

Boots-Sutton, of Horizon Land & Auction, Bowling Green, Mo., received a trophy, diamond ring and $5,000. Reserve Champion was James Pendleton, of Salt Lick, Ky.

In the team competition, Pendleton and Dustin Taylor won the top prize, which included $5,000. Peter Gehres, CAI, CES, of United Country — Gryphon Realty & Auction Group, Lewis Center, Ohio, won the Sportsmanship Award.

NIADA TV (National Independent Automobile Dealers Association) broadcasted the championship live for the first time. It had more than 125,000 viewers.

“This was one of the best championships in history,” says World Automobile Auctioneers Championship President Paul C. Behr, CAI, BAS. “Every contestant did their best, and the close scores reflected the high caliber of talent of the contestants.”

The 2013 World Automobile Auctioneers Championship is scheduled to take place at Midway Auto Auction, Waco, Texas, on May 17.

1 Comment

Filed under Auction Industry, Auctioneer magazine, NAA Members, Uncategorized

NAA member starts heart health support group

By O.C. Mangold, CAI, AARE, CES, GPPA

Acute myocardial infarction (AMI), commonly known as a heart attack, results from the interruption of blood supply to a part of the heart, causing heart cells to die. It is most commonly assumed the cause is plaque, which is an unstable collection of lipids (cholesterol & fatty acids) in coronary arteries. However, Dr. Chauncey Crandall, M.D., F.A.C.C., Chief of the cardiac transplant program at the world-renowned Palm Beach Cardiovascular Clinic in Palm Beach Gardens, Fla. states in his February 2012 Heart Health Report that stress hormones can cause blood clots resulting in occlusion of coronary arteries. This also leads to heart attacks.

Most Auctioneers often create stress in their lives due to scheduling, family malfunctions, overwork, emotional situations, insomnia, indigestion and a variety of unhealthy conditions. The process is known as the “fight or flight” response. Therefore, according to Dr. Crandall, even if you eat healthy you may still be a candidate for heart attack if your life is quit stressful.

Another study by Veronique L. Roger, M.D., MPH of the Mayo Clinic in Rochester, Minn., identifies a 30-day “Red Zone” as the first 30 days after a heart attack when 50 percent of the 1.1 million men and women who suffer heart attacks each year don’t survive. Once again anxiety and stress can be a major factor. These results were published in the Nov. 5, 2008, issue of the Journal of American Medical Association.

Some other factors contributing to heart disease are aging, genetics, obesity, hypertension, high cholesterol, eating habits, psychological issues, use of tobacco and lack of physical activity. Stress may be the precipitating cause of some of these factors, especially eating habits.

I am 73 years old and have had two heart attacks and two heart surgeries. Upon discharge from the hospital the last time I sought to find a heart support group as I had severe depression and anxiety wondering if my next step was my last. There was no support group in our community or northern Phoenix. After much thought, prayer and discussion with professionals, I organized “Heart 2 Heart.” The purpose is to develop spiritual, mental and physical support to heart patients. As well as heart patients we have also had cancer patients attend.

We greet each other with “It is good to see you today.” If I don’t see you or you don’t see me one of us is no longer here. The old standby of “How are you” is frivolous as no one really cares or has the time to listen if you tell them.

A local pastor starts each meeting followed by a professional speaker. Physicians, psychologists, dietitians, fitness directors, pharmacists, EMT’s and other professionals disseminate helpful information for maintaining a heart-healthy life. “Heart 2 Heart” is open to anyone including family and friends at no cost. All speakers donate their time. A recipe exchange is an interesting part of the program.

I have been an Auctioneer for more than 40 years. With certainly I can attest to the tight wire we sometimes experience as Auctioneers. My wife and I work together in everything we do. Sometimes our lives have been stressful, but we are always there when the other has needs to resolve. Our “Golden Years” include travel, our three sons and four grandchildren, our puppy, Ike, two horses, Blue and Rusty, and we look forward to start each day with a “Walk with the Lord.”

This article should not be interpreted to be a source of information for diagnosis or treatment of heart disease but contributing factors used by the writer in his own experience as a result of cardiovascular disease.

Leave a comment

Filed under Uncategorized