AUCTION FAQs
Here is a list of some common Frequently Asked Questions regarding auctions, how they are conducted, and how to best
approach them as both a buyer and seller. For specific information on how we can best assist, please contact us .
| WHAT IS AN AUCTION? | |
| An auction is defined as a public sale of goods or property in which prospective purchasers bid until the highest price is reached. | |
| Return to Top ^ | |
| DEFINITIONS | |
| Auctioneer
The person who conducts an auction sale Ringmen A person who assists an auctioneer by spotting bids and signaling the information to the auctioneer, often from the ring where livestock sales occur or from an audience such as in a fundraising event. Auction House Usually refers to auctioneers who hold auctions at their own premises, the company is referred to as an auction house. Catalogue Auctions These auctions are usually held in a location different to where the actual goods for auction are kept. Viewing of the goods will have taken place prior to the auction. On Site Auctions If a company has gone into liquidation and its assets are to be sold at auction that auction sometimes will take place at the company site rather than at an auction house , this is done when it is not practical to transport the goods to the sale the goods are sold "On site". Online Auctions This usually means the auction is being held on the auctioneers web site and runs in real time, bids are taken via the web site after a registration process has been completed, the auction will run for a specified amount of time ( this can be hours, days or weeks ), when the end of the auction period arrives the highest submitted bid will get the goods. Online Catalogue The auctioneers often place details of the lots for auction on their website. This can be in HTML, i.e.. as a web page, or can be a file made available to you for download. ( Both a page of HTML and a file for downloading can be saved to disk on your machine for viewing off-line ) |
|
| Return to Top ^ | |
- The goods are being sold to raise cash to pay of debtors if the previous owner has gone into liquidation, receivership or bankruptcy.
- The goods are being entered in the hope of a dealer making a profit from their sale.
- The goods are being sold by the owner to create space for new stock
- The goods are surplus to the owners requirements due to new stock being acquired.
- The goods have been part of a leasing agreement and the term of lease has ended and the goods are not required by the leasing company who are now the legal owners.
- The goods will not sell any other way due to poor demand or over supply.
- The goods may be part of an illegal consignment and have been confiscated by an official department who now wish to dispose of them.
- The goods may have been stolen and the previous owner cannot be traced by the appropriate authorities.
- The goods may be government department or armed forces surplus stock due to being out of date or over stocked.
| WHAT TYPE OF GOODS ARE AUCTIONED? | |
| Just about anything can be sold
at auction here are some examples:
ANTIQUES
|
|
| Return to Top ^ | |
| HOW DOES AN AUCTION WORK? | |
| When you arrive at the auction
site you may need to register with the auctioneers
in order
to obtain a bidding number
, the information required is usually
your name and address and you may also need to pay a returnable deposit.
You should be familiar with the registration requirements for the
particular auction before you arrive in case a large deposit
is required. If you have not viewed the lots for auction prior to the auction day you will need to allow yourself time to inspect your prospective purchases before the auction starts if this is allowed, some auctions may not allow you to view the lots other than in the specified viewing dates and times , with some "catalogue" auctions you may not be allowed to view the lots after the auction has started. You should confirm these details with the auctioneers prior to the auction date. When a lot you are interested in bidding on comes up for sale the auctioneer will announce the lot number ( either found in the catalogue next to the item or placed on the item during the viewing period ) and give a brief description of the item usually tied to the description given in the catalogue. A starting bid will be suggested by the auctioneer and usually bidding will start below this price so do not assume the auctioneers starting bid is the lowest price available. If the item has a reserve price the auctioneer will often start the bidding above this price and reduce the start bid towards the reserve price until a bid is made. The auction catalogue will usually display a guide price for the item which is above the items reserve price. You are free to start bidding at any time after the auctioneer has announced the starting bid. Some auctions especially liquidations, bankruptcies and receiverships have no reserve prices so give it a little time before you start your bidding, if there are no other bidders your first bid may be the price you pay. If similar lots are listed together in the catalogue and you are the buyer of the first lot you may then have the option to purchase the similar lots at the same price as the first. When bidding it is usual to get the auctioneers attention by raising your hand or making some other clear gesture to the auctioneer followed by the amount you wish to bid if different to the auctioneers announced price. Now you have started bidding the auctioneer will return to you every time the bid is against you to see if you wish to raise your offer, a clear shake of the head will indicate to the auctioneer that you do not wish to continue bidding. Bids go up in steps controlled by
the auctioneer and until the bid nears the assumed final price a bid
of less than this amount will not usually be taken. Remember it is usual for the goods to be the responsibility of the purchaser after the hammer has fallen If the items for auction are large, heavy or difficult to move, representatives of removal companies will usually be present, but this is worth checking with the auctioneers before you make your purchase. |
|
| Return to Top ^ | |
- It is important to physically inspect the property or inventory that you are interested in.
- Before the auction event, make sure that you have cash needed - most are cash and carry, and expect payment same day.
- If you will need financing you must make arrangements before auction day because auction day purchases are not contingent upon the bidder obtaining financing.
- Read the Terms and Conditions and familiarize yourself with them.
- Try to arrive at least 30 minutes early for an important pre-auction inspection for bidders. The entire auction process will be explained before the auction begins.
- All items are sold " subject to the SELLERS confirmation " unless noted otherwise by the bid package, Terms and Conditions and by the Auctioneer and can be changed at anytime up-to the time of the bid calling. This means that the SELLER has the right to accept or reject the high bid. SELLERS will be present or available by phone.
- There will be a BUYERS PREMIUM fee added to the bid price of each property that is sold on auction day. This fee becomes a part of the total contract price paid by the purchaser and is used to defray a portion of the costs involved in conducting the auction event.
- If you are a successful bidder, you will be required to make a down payment as per the Auction Terms and Conditions .
 |
