Buyer Tips Auction

Auction is the oldest method of sale known to man and despite some considerable debate, scholars generally accept that the first Auctions occurred in Babylon in about 500 B.C. In 193A.D. Didius Julianus was the highest bidder to become the Emperor of Rome with a bid of 6,250 drachmas per Roman Guard. Ancient Roman Auctions were held in an "Atrium Auctionarium" and the bidders did not call out openly but winked or waved to record their bid. Sothebys was established in 1744, Christies was founded in 1766 and Harcourts was established in 1888 in Wellington by Mr J.B. Harcourt.

Nothing much has changed over the years and the modern Harcourts Auctions are conducted in a similar way with Auctions being held on site or in our Auction rooms by our professional Licensed Auctioneers. The Harcourts Team will be there to provide any assistance you need. Don't be afraid to ask.

Most Harcourts Auctions are subject to a Reserve Price which the seller has advised us is the sum that they will not sell for less than. The Reserve Price may or may not be able to be disclosed and indeed it may not be set until moments before the Auction commences.

When the Auction commences, the Auctioneer will read out the terms of the sale and the conduct of the Auction. When the Auctioneer begins to call for bids, we recommend that you register your interest early and clearly to The Auctioneer by calling out, putting your hand up or winking - just as in Roman Times.

The Auctioneer will state quite clearly when the property is to be "knocked down" (sold at Auction) to the highest bidder. The Auctioneer will also say when it has not yet reached the Reserve Price and the property will be "passed in" (not sold at Auction) to the highest bidder.

If the property is sold to you as the successful bidder, you will be required to sign a memorandum recording the sale and pay a deposit cheque (usually 10% of the purchase price) to The Auctioneer.

If the property does not reach the Reserve Price, The Auctioneer will advise that the property will be"passed in". In this case the last (highest) bidder will have the first right to buy the property at a price and on terms acceptable to the sellers.

Our suggestions
We suggest that you contact your Banker or Mortgage Broker prior to attending the Auction because if you are the successful bidder, you will be required to pay a deposit and your bid can not be subject to any financial conditions. If you have left it a bit late, just ask them to process your finance application urgently and your Banker or Mortgage Broker should be happy to oblige. If not, we can refer you to one who will be.

If the Reserve Price has been disclosed and you intend to pay at least this price we recommend that you bid the Reserve Price at commencement of the Auction.

If your bid is the best bid below the Reserve Price and you hope to negotiate after the property has been "passed in", you will be under no obligation to buy but the seller is no longer obliged to sell to you either. We recommend that you bid the Reserve Price before it passes in to you or someone else.

Without exception, if you intend to buy the property you must be the highest bidder.