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What Is Hammer Price?

What Is Hammer Price?

The “Hammer Price” is so named referring to the final amount bid and called by the auctioneer at the fall of the hammer.

Of course, a gavel or hammer is not always used by the auctioneer to call the final bid. The auctioneer may simply call sold or use other methods such as clapping hands, slapping the leg, using a stick, and so on. Whatever the method used by the auctioneer the final bid is still referred to as the hammer price.

In the world of online auctions, the final closing bid is also referred to as the hammer price.

BUYERS FEES & TAXES

In many auctions including those facilitated by Hinter Auctions, the hammer price does not include fees such as a buyer’s premium and taxes such as GST that may be applicable. These fees (if applicable) are usually added to the hammer price on invoicing. It is worth noting that any additional fees and taxes are added to the hammer price separately and not compounded on top of each other.

For example, if the hammer price is $100 and a 10% BP + 10% GST applies the final invoice amount will be $120.00.

Please note – Under QLD Office of Fair Trading rules any additional fees must be declared prior to the auction or the lot offered. It is the buyer’s responsibility to account for any additional fees when bidding at auction.

SELLERS COMMISSIONS & FEES

A commission is usually charged to the seller and at times additional fees such as listing fees, PPSR checks etc. These fees are deducted from the hammer price.

For example, if the seller’s commission is charged at 10% and a listing fee of $1 applies the settlement amount payable to the seller would equal $89.00.

DISCLAIMER

The fees and commissions used in this post are examples only and do not necessarily reflect the actual fees used at individual auctions. When bidding at auction please refer to the terms and conditions for the actual fees. Sellers fees/commissions are outlined in the consignment agreement.

 

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Director/Auctioneer

Bidding Increments Explained

Bidding Increments Explained

 What are bidding increments and how do I know what they are?

There are various methods by which auctioneers will accept bids at auction. Most chattel auctioneers will accept bids at certain increments and possibly update the amounts as the auction progresses. This post explains the incremental bidding process used by the auctioneers at Hinter Auctions.

What are bidding increments?

Bidding increments are simply the amount the auctioneer will increase the bids during the auction.

As a general rule, the bidding increment will be approximately 10% of what the current bid is. For example, if the bid is currently $200 you may expect the bids to be increased by $20. The auctioneers at Hinter Auctions (and most auction houses) have a set base of increments to work with. These are called number brackets.

Whilst the auction house does have these number brackets to work with they are a guide only and the auctioneer does have full discrepancy as to what the bidding increments should be. The auctioneer may increase or decrease the bidding increments during the auction for various reasons to maintain flow and efficiency.

Below is an example of the Hinter Auctions number brackets.

How do the bidders know what the increment is?

There are 2 answers to this. One for on-site bidders and another for online bidders. As Hinter Auctions often run simulcast auctions (on-site and online) I will answer them both.

On-site Auction Bidders

In a live auction format, the auctioneers will state what the increment is to be. With the fast pace of the usual chattel auction, it is important to listen to what the auctioneer is saying. Auctioneers often have their own unique style of stating the increments. You may hear the auctioneer say something as simple as “$10 bids” or another way of asking for the same increment may be “taking teners”. Another way of stating increments may be in percentages for example the auctioneer may say “1/4 bids now”. The increment in this case would depend on where the bidding is at eg. if bidding is in the hundreds then a 1/4 bid would be $25. If it is in the thousands a 1/4 bid would be $250 and so on.

This may seem a little daunting but if you listen to the auctioneer call a few lots you will soon understand the general bidding increments and how they are called.

Online Auction bidding.

Whether you are bidding online in a live or a timed format the answer is simple and basically the same. On the screen, you will see what the asking bis is, rather than the increment. For example, if the current bid is $50 and the current increment is $10, then displayed on the screen will be the asking bid of $60.

Can a bidder ask the auctioneer to accept a bid out of increment?

A bidder can ask the auctioneer to accept a bid that is out of increment. For example, there is the so-called “killer bid” where a bidder may call for a high bid in an attempt to put off other bidders. The opposite is also true where a bidder may call for a lower increment in an attempt to hopefully secure the item at a lower price.

It is totally up to the auctioneer what bids are accepted. In order to maintain control of the auction the auctioneer may not accept bids that are out of the increment stated.

Keep it fun and flowing

The main reason Hinter Auctions auctioneers use set number brackets is to keep the process fun and flowing. Most of our auctions contain between 300 – 400 lots and so it is imperative that the sales are conducted in a smooth, flowing, and fun manner. We love to see new bidders learn about the auction process and get amongst the bidding action.

If you would like to learn more about increments or the auction process feel free to contact us any time.

 

 

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Director/Auctioneer

Navigating The Auction Online Catalogue

Navigating The Auction Online Catalogue

 Navigating The Hinter Auctions Catalogue 

Here at Hinter Auctions, we have worked towards presenting the best online catalogue and bidding platform out there. The online platform provides numerous options for the viewer and potential auction bidder.

Auction Info

Once you have clicked into the auction you are interested in we recommend that firstly you go to the “AUCTION INFO” section. This will give you all the information regarding the auction including:

  • Address details
  • Viewing times
  • Contact details
  • Shipping and collection details
  • Terms and Conditions

Auction Catalogue Search Features

The Hinter Auctions online catalogue gives the ability to search by a number of methods including:

  • Keyword
  • Category
  • Price range
  • Lot number (you can go directly to the lot if you know the lot number)

Taking A Closer Look

If a lot or item attracts your attention there is a lot more to discover. Click into the lot and scroll down to find more information in the description. Further details could include measurements, blemishes/faults, background information, additional terms and more.

Images

The team at Hinter Auctions endeavours to capture as much detail as possible with images. There are usually several images taken of each lot detailing various aspects of the item/s. We encourage you to take the time to look at the detail in the images. If you are on a computer there is the magnifier feature and of course, if you are perusing on a smartphone or tablet simply zoom by expanding with your fingers.

Add The Lot To Your Watchlist or Ask For More Info

If after looking at the description and photographs there is the ability to add to a watch list (if you have created an account and are logged in) and/or ask for further information on the lot. To add to your watchlist simply click on “Add to Watchlist”.

If you want to know more about the lot click on “Ask a Question” enter the question in the text box and it will be directed to support for a response.

We hope you enjoy using the platform whether you are bidding in-house or online. We hope to see you at our future auctions and we are always on hand to answer any questions. Feel free to reach out at any time here…

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Director/Auctioneer

Presenting The Blacksmith’s Anvil For Auction

Presenting The Blacksmith’s Anvil For Auction

How To Present A Blacksmith’s Anvil For Auction

Why go to the effort to present the blacksmith’s anvil for auction?

Simply put, by going to the effort to present your blacksmith’s anvil you will attract more bidder interest and potentially more dollars. At Hinter Auctions, we believe that presentation is key not only for a blacksmith’s anvil but for any item submitted for auction. Well presented items also photograph well against a clean backdrop (we use a photo booth at the auction house) which will attract the attention of catalogue visitors also.

How to simply clean the blacksmith’s anvil

For the most part, the simple use of a soft brass brush will be sufficient to clean up the blacksmith’s anvil. The use of a brush on a drill or grinder will speed up the process but a hand brush will also do the trick. During the cleaning process, the brass brush will also lay down some colour to really emphasize the clean and shiny black steel look that is pleasing to the eye. Note – be careful not to overdo it with the brass brush as to bring out an overly golden look.

Oiling or coating the blacksmith’s anvil

Oiling or coating the blacksmith’s anvil is definitely NOT RECOMMENDED. For the blacksmith to use the anvil effectively the oil or coating must be burned or cleaned off. For presentation in the auction house, it presents a real problem as firstly the lot number will not stick and as viewers will naturally want to touch the anvil there is the potential for the oil or coating to tarnish other lots.

Not just for the blacksmith’s anvil

Whilst I have demonstrated how to present the blacksmith’s anvil, this technique can be used on almost any stell item that the nice black steel look will present best. For finer items definitely opt for the handheld brass brush. For heavily rusted items it may be necessary to use a steel brush prior to the use of the brass brush.

Whatever the product is remember that presentation is key to attracting bidder interest and the best dollars at auction.

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Director/Auctioneer

Auction Reserves

Auction Reserves

Auction reserves can sometimes be confusing in many ways for both the buyer and seller alike. Reserves are sometimes set prior to the auction, but what are they and what do they mean for the vendor and bidder. This post will explain auction reserves and how they are handled during the bidding process.

What are auction reserves?

Auction reserves are simply a minimum price that the vendor is willing to sell a lot for. The auctioneer is obligated to follow the seller’s instruction and cannot sell the lot below the reserve price.

Reserves can often be confused with estimates. At Hinter Auctions, we often include a high and low estimate for lots offered in our catalogues. Estimates are a guide only and should not be confused with a reserve.

How are auction reserves set?

Auction reserves are always set by the seller. Whilst often sellers seek guidance from the auctioneer for setting the reserve price it is ultimately their decision. The auctioneer is then obligated to follow the seller’s instruction.

Is the reserve disclosed to buyers?

Reserves are never disclosed to bidders prior to the auction. The exception to this is when the seller has instructed the auctioneer to disclose the reserve.

How do I know when auction reserves have been met?

When an auction lot has a reserve price set, the auctioneer is required to disclose:

  1. That the lot has a reserve price set (prior to bidding)
  2. That the lot is on the market as soon as the reserve has been reached (during bidding)

When the lot has reached the set reserve the auctioneer will announce that the lot is on the market and bidding proceeds. Some of the phrases that the auctioneer may use to announce that the reserve has been met are:

  • Reserve is off
  • It’s on the market
  • It’s for sale
  • You’re playing for keeps
  • You’re bidding to buy now

If the reserve has been met or exceeded the vendor is obligated to sell to the highest bidder.

What happens if the reserve is not met?

If the set reserve has not been reached during bidding the auctioneer will either:

  • Announce that the reserve has not been met and move to the next lot
  • Pass it to the highest bidder.

 Lots that have not met reserve can be purchased post bidding at the auction. The purchase price is the minimum reserve however buyers can submit an offer. Offers below the reserve price are submitted to the vendor for approval.

If the lot has been passed to the highest bidder they have the first right to buy at the auction. If the highest bidder does not purchase then the lot is open for purchase by other bidders.

The length of time a lot is available for purchase varies at each auction.

Please note that purchase of lots post bidding is still subject to buyers premium and applicable fees.

Feature Photo by Hitesh Dewasi on Unsplash

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Director/Auctioneer

How absentee bids work at auction

How absentee bids work at auction

Can’t make the auction? Never fear, you can still participate in the auction with absentee bids

What is an absentee bid?

An absentee bid is exactly as it sounds. It is a bid placed by a potential buyer who wishes to compete for a lot (or lots) but cannot be present during the auction. Absentee bids are a service offered to our bidders at Hinter Auctions.

How do I submit an absentee bid?

The first step is to ensure you have registered as a bidder with Hinter Auctions. Bidders are required to required to be registered prior to bidding at auction (this includes absentee bidders).

If you are not registered you will be required to supply:

  • Your name
  • Physical address
  • Phone number
  • Photo ID (or valid credit card for online bidders)

Once registered, absentee bids can be submitted :

In person

Download, fill and submit to the auctioneer or auction staff

Must be received by close of business the day prior to the auction

By email or phone

Details required are:

  • Your name (you may be asked to verify your ID)
  • The lot number/s
  • The lot title/s
  • Your maximum bid amount
  • The absentee bid form can be copied and forwarded to us also

Contact details here…

Must be received by close of business the day prior to the auction

Online

To submit an absentee bid online:

  • Register or login
  • Enter your user details (new registrations)
  • Enter your billing information (all online bidders require credit card validation to bid)
  • Go to the item in the catalogue
  • Enter your maximum bid amount

Online absentee bids can be submitted up to the time the lot is offered.

 

Please note that all bids submitted are subject to the buyers premium, online fees and applicable taxes. Please read the terms and conditions of the auction prior to bidding.

How are absentee bids executed?

Absentee bids are recorded and are visible to the auctioneer during bidding. The auction commences as per normal by firstly establishing a starting bid (usually from the floor in a live auction). Further bids are then asked for at the current increment amounts declared by the auctioneer. The auctioneer will bid on your behalf against present bidders up to your maximum bid amount.

When bidding has been exhausted and your bid has not been exceeded you will be declared the winning bidder at the current bid price. Your bid is unsuccessful if your maximum bid has been exceeded.

What if there are multiple absentee bids?

If there are multiple absentee bids on the books, then by default bids will be executed by the auctioneer on behalf of the bidder who submitted the highest absentee bid. The starting bid is established by the second highest absentee bid unless a higher bid comes from the floor.

Let me explain using the below example of absentee bidders #1, #2 and #3 who submitted the below bid amounts:

  1. $40
  2. $50
  3. $100

In this scenario bidders #1 and #2 have already been outbid by bidder #3. The starting bid will be one bidding increment above the bid placed by bidder #2.

In this case, the starting bid would be $55 (using the Hinter Auctions bid increments). On behalf of bidder #3, the auctioneer will bid against the floor up to their maximum amount of $100. If there are only 3 more bids after the start then bidder #3 will be declared the winning bidder buying the lot for $70. If bidding exceeds $100 then bidder #3 is also unsuccessful.

Need to know more about the auction process?

At Hinter Auctions, we strive to take the mystery out of the auction process and make bidding an enjoyable experience.

If you are considering buying, selling at auction please feel free to contact us any time. We would love to help.

 

 

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Director/Auctioneer