Why are goods sold at
What type of goods are sold at
How does an Auction work?
Hot Auction Tips
An auction is
defined as a public sale of goods or property in which prospective purchasers
bid until the highest price is reached.
You can bid on an item without attending an auction personally by
submitting an "absentee bid". The bid is submitted on an item prior to the
auction starting by whatever means the auctioneer has
Not a true auction. Confidential bids
are submitted and opened only at a predetermined place and time.
Absolute auctions are won by the highest
bidder without any limitations or reserve prices being
This type of auction has a number of
items offered at the same price, the highest bid for the most items wins the
When an item is valued or confirmed by an
auctioneer it is known as an appraisal the person doing appraisals may also be
known as an appraiser.
The person who conducts an
Usually refers to auctioneers who
hold auctions at their own premises, the company is referred to as an auction
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.
An auction where a seller has listed multiples of the same item.
All winning bidders pay only the lowest successful winning bid
The price reached by the auctioneer when
the hammer or gavel is dropped.
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".
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 )
identities are not disclosed in this type of auction.
Submitting a confidential maximum bid to an auction service. The
auction will automatically increase the bid to maintain the high bid. The proxy
bidding will stop when the bid has won the auction or reached the limit of the
The seller has set a minimum
(reserve) price for the lot and can decide wether to accept or refuse a bid.
The reserve price may not be disclosed.
auction where a seller has listed multiples of the same item. Each winning
bidder pays their exact high bid.
Why are goods sold at auction?
several reasons why goods may be sold at auction and it is important to know
why the goods are being sold and where they came from, this information can be
found by consulting with the auctioneers before the sale or it may be stated in
the catalogue of lots relating to that auction sale. One of the following may
- 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
- 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?
anything can be sold at auction here are some examples
Furniture - Jewelry - Antiquities - Artifacts -
Clocks & Watches
Stamps - Coins - Books - Postcards -
Medals - Print - China & Glassware - Memorabilia
Caravan & Camping - Marine - Aviation - Sports
Houses - Flats - Land - Commercial Premises -
Warehouses - Workshops - Studios
Appliances - Fridges - Freezers - Washers - Dryers - Electrical Goods - Hi-Fi's
- T.V's. - Videos - Clothing - Carpets - Beds - Garden
Foodstuffs - Wines - Spirits - Beers -
Equipment - Furniture - Consumables -
Home Systems - Business
Systems - Parts & Peripherals - Printers - Scanners -
Cars - Vans & Commercials - Trucks &
H.G.V. - Motorcycles - Vintage - Motor Parts
INDUSTRIAL PLANT &
Contractors Plant & Machinery - Engineering Machinery -
Printing, Chemical & Fabric Equipment - Commercial Catering Equipment -
Stock Materials - Scrap Materials &
Buildings - Machinery & Tools -
Livestock - Vehicles
Armed Forces - Government
Department Stock - Seized & Confiscated Goods
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.
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
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
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
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.
bid is the final bid and the price reached is above the items reserve
price you have been successful in your purchase.
After you have won the
bid you will have to pay an immediate deposit, the amount of deposit
will be stated in the terms and conditions of the auction catalogue. The type
of payment method i.e. cash, bank drafts, credit cards will be stipulated in
The amount of time given to pay fully for the
purchase and clear the goods from the auction house will also be given in the
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.
travelling any considerable distance to the auction, you should obtain a
catalogue of items to ensure the goods for sale are what you
Certain auctions can be subject to cancellation at short notice and
it is therefore a good idea to phone on the morning of the sale to confirm the
sale is going ahead.
- You should
inspect the items thoroughly as most auction items are sold without guarantees,
if items are described as faulty check that the faults can be easily repaired,
sometimes you can test the goods before the auction starts, ask the auctioneer
if this is possible.
Some motor vehicle auctions give you a period of time
after the sale in which to return the vehicle if it is found to be faulty,
again check this with the auctioneer prior to bidding.
- Think about
setting yourself a price limit on the goods you are interested in and "stick to
it", how much would the item cost new with a guarantee?
Remember a "buyers
premium" may be added to the final bid price at some auctions and local taxes
may also be added to the price ( check the "conditions of sale" in the
catalogue or consult the auctioneer before bidding )
- Catalogues are
not set in stone and items listed can change.
- Listen out for
any changes stated by the auctioneer in the description they give of the item
at the start of bidding.
- If you bid for
the wrong lot, tell the auctioneer immediately, although you have a legal
obligation once you have won the bidding the auctioneer may present the item
for auction again, but this is purely at the auctioneers discretion and you may
have to make up any difference if the final price is lower than your original
If you find a bargain as a result of
AuctionGuide.com please tell the auctioneers where you found out about
their sale. The more auctions listed here the greater your choice and chances
of finding some great deals. Good luck...
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