An auction is defined as a public sale of goods or property in which prospective purchasers bid until the highest price is reached.

Definitions
Why are goods sold at auction?
What type of goods are auctioned?
How does an auction work?
Hot auction tips:

Definitions

Absentee Bids
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 specified.


Absolute Auction
Absolute auctions are won by the highest bidder without any limitations or reserve prices being imposed

Appraisal
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.

Auctioneer
The person who conducts an auction sale

Auction House
Usually refers to auctioneers who hold auctions at their own premises, the company is referred to as an auction house.


Hammer Price
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".

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 )

Why are goods sold at auction?

There are 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 apply:

 

Estate Auctions Business Liquidations

• 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 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!

ANTIQUES
Furniture - Jewelry - Antiquities - Artifacts - Clocks & Watches
FINE ART
Paintings - Sculptures
COLLECTIBLES
Stamps - Coins - Books - Postcards - Medals - Print - China & Glassware - Memorabilia
LEISURE
Caravan & Camping - Marine - Aviation - Sports Goods
PROPERTY
Houses - Flats - Land - Commercial Premises - Warehouses - Workshops - Studios
HOUSEHOLD
Furniture - Appliances - Fridges - Freezers - Washers - Dryers - Electrical Goods - Hi-Fi's - T.V's. - Videos - Clothing - Carpets - Beds - Garden Equipment
OFFICE
Equipment - Furniture - Consumables - Telecommunication Equipment
COMPUTER
Home Systems - Business Systems - Parts & Peripherals - Printers - Scanners - Modems
TRANSPORT
Cars - Vans & Commercials - Trucks & H.G.V. - Motorcycles - Vintage - Motor Parts
INDUSTRIAL PLANT & MACHINERY
Contractors Plant & Machinery - Engineering Machinery - Printing, Chemical & Fabric Equipment - Commercial Catering Equipment - Stock Materials - Scrap Materials & Equipment
AGRICULTURAL
Buildings - Machinery & Tools - Livestock - Vehicles
GOVERNMENT
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.

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.

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 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.

After you have won the bid The type of payments are cash and verified credit cards

All items must be paid for before loading on auction day.

Remember you are responsible for items once the auctioneer says sold. At this time you should have someone with you to assist in taking care of your purchased items.

If the items for auction are large, heavy or difficult to move, plan ahead with hand trucks, dollies and your guys.

Hot auction tips:

1. 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.
2. 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 )
3. Catalogues are not set in stone and items listed can change.
4. Listen out for any changes stated by the auctioneer in the description they give of the item at the start of bidding.