At absolute auctions the bidders
have to drink a fifth of absolute before bidding.
or
FOR IMMEDIATE RELEASE
September 24, 2004
CONTACT:
Robert A. Shively, CAE,
NAA Chief Executive Officer
(888) 541-8084, ext. 11
bob@auctioneers.org
NAA Publishes Position Paper on Absolute Auctions
OVERLAND PARK, KAN. – To help consumers to more clearly understand the National Auctioneers Association’s commitment to professionalism and ethical business practices, and to reiterate to its members the standards set forth in the Code of Ethics, the NAA has published its first “position paper.”
The paper focuses on proper ethnical conduct for absolute auctions of real estate. It will be formally released to members in the November issue of Auctioneer magazine. Consumers can look for it on the NAA web site, www.auctioneers.org. It is the first in a series of position papers planned by the NAA Board of Directors.
“We want to take a proactive role in communicating our position on sound and ethical auction practices,” said Mike Jones, CAI, NAA president. “This paper clearly summarizes our position on absolute auctions of real estate by not only defining what they are, but also by outlining proper conduct and improper conduct for auctioneers.”
As real estate auctions have grown in popularity, so have absolute auctions. However, in recent years, there have been reports that some of these auctions have strayed away from the defined practice. The definition of an absolute auction of real estate is an auction “without reserve.” This means the seller has committed to selling the property without any minimum which must be realized at the sale. Using this method of auctioning a property simply as a marketing strategy defies the definition, as does canceling the sale if a “sufficient” bid is not realized.
“As with all of our business practices, both the seller and buyer must be represented fairly and justly in an absolute real estate auction,” Jones said. “That is the basic principle on which our Code of Ethics was formulated.”
The position paper also notes the NAA’s formal grievance process. Members are encouraged to utilize this grievance process if they witness conduct that is in defiance of the NAA Code of Ethics. Members found to be in violation of the Code of Ethics can be dismissed from the organization.
NAA Position Paper |
