Selling

Is it worthwhile selling at auction?

For general household items and cars, we think auctions are a good, simple way to sell.

Cars, furniture and appliances are commonly auctioned, although more exotic items can also be auctioned.

To get the best price, make sure what you're selling is as good as it can be. Polish and clean the goods, and do any small repair jobs needed.

Second-hand dealers often buy at auctions. If they see items in good condition, they're more likely to bid higher, as they know they can stick the pieces straight into their showroom, without having to go to the trouble and expense of cleaning and repairing them.

What does it cost to use an auctioneer?

The auctioneer will take a commission on the sale price, usually around 10 to 25 percent, depending on the goods being sold, plus GST. The commission may have a dollar minimum and/or include a flat dollar fee.

Commissions may be negotiable for very low or high value items, or for a large amount of items

If you want the auction house to pick up the items from you (that old three-piece lounge suite, for instance), the cost of this is usually deducted from the money made at the sale.

What protection do I have as a seller?

You'll be expected to sign an agreement covering all the sale details. Make sure you read and understand it before signing.

Common clauses in sale agreements cover the commission charged, other costs (such as pick-up costs and GST) and an assurance from you that you are legally entitled to sell the goods (that is, they are not stolen or security for a loan).

Beyond this, the auctioneer is bound by the Fair Trading Act. That means they cannot mislead you in any way. Also, although the goods sold at auction aren't covered by the Consumer Guarantees Act, the services the auctioneer provides are. This means auctioneers must provide their services with reasonable care and skill.

For instance, if the goods are damaged while in the auctioneer's care, they may be liable for the cost of this. However, the auctioneer's agreement may stipulate that you pay a small premium for insurance to cover this liability.

If you end up in a dispute with the auctioneer and they won't pay up, complain to the relevant professional association or take a claim to a Disputes Tribunal.

I'd like to auction off my old car, but I don't want it going for a song.

You can usually set a reserve price. If the car doesn't reach the reserve, it will be "passed in", which means it isn't sold.

If the highest bid comes close to the reserve, you may agree to sell at that price or to negotiate further with the bidder.

The auction house can advise you on a realistic reserve. But if the goods are unique, very valuable, or special in some other way, you may want to get an independent valuation to establish a reasonable reserve.

Be realistic. The auctioneer may decline to sell your goods if they think your reserve price is too high. And remember to factor in the auctioneer's cut: the reserve price will be a gross figure

My girlfriend recently inherited some antique jewellery from a great aunt in England. She wants to auction it off, but it would look pretty weird sitting next to 20 CD players!

There are specialist auctioneers around who can handle such jobs. Some concentrate on antiques, others on military memorabilia, stamps, coins, commercial products and the like.

Specialist auctions attract specialist buyers who have a particular interest in the unusual items up for sale.

Your girlfriend should check out the Yellow Pages, the internet and newspapers for some likely auctioneers. She might also like to contact the professional associations for guidance.