Choosing
an
​Auctioneer.

Beware of persons claiming to be auctioneers who are not lawfully Registered under the Auctioneers Act 2013.
If you intend employing any auctioneer, first check:
  • Are they Members of the Auctioneers Association and therefore obliged to operate under our code of ethics? 
    ​-  This is not obligatory but will provide you with some assurance and means of redress through our Association.
  • Are they lawfully Registered? 
    - If not don’t deal with them and please point them out to us.
  • Do they operate a Trust Account with their bankers, to hold your money once the goods or whatever are sold? 
    - If not don’t deal with them.

Laws applying to goods sold at auction​

The services the auctioneer provides are covered by the Consumer Guarantees Act. This means auctioneers must provide their services with reasonable care and skill.

Auctioneers are also covered by the Fair Trading Act. That means they can't say or do anything that misrepresents or misleads you about the goods on sale or the auction process.

The Auctioneers Act 2013 makes it an offence for a person to carry on business as an auctioneer unless they are registered.  Individuals can be fined up to $10,000 and companies up to $30,000.

When things go wrong

The Auctioneers Association deals with complaints about unethical behaviour, standard of service, negligent advice or service and non-payment of proceeds due and any other matter of concern.  Click the COMPLAINTS button to find out more.

Read the Small Print

To make a bid at an auction, you usually have to register and sign an agreement with the auction house, often referred to as the Terms and Conditions of Auction Sales.
Make sure that you check and understand this first, and ask if you are unsure.
The agreement will contain some of the rules of the auction that you need to know about before you buy.
Some COMMON EXAMPLES of such conditions include:
  • a "buyer's premium" of 10 per cent to be added to price
  • goods must be collected on the day
  • payment will only be accepted in cash or bank cheque
  • buyer to arrange own delivery.

Advice for Selling at an Auction

  • Remember that auctions are places where people go to get bargains so you may want to put a Reserve Price on the goods you are wanting to sell.  This means that the goods cannot be sold for less.  
    If goods do not "reach reserve" they are "passed in".  The auctioneer will advise you of the highest bid to see if you willing to sell at that price.
  • If the goods are unique or special in some way you may want to get an Independent Valuation to establish a reasonable reserve price.  An auctioneer may not want to sell your goods if they think that your reserve price is too high.
    Talk to the auctioneer about your expectations - this can save a lot of misunderstandings later.
  • Sellers should consider what type of auction would best suit their goods.  Ask the auctioneer what types of auctions they specialise in.  Some auctioneers offer a range of Special Interest Auctions such as antiques, memorabilia, stamps and coins.  Others may specialize in office or commercial products such as computers, plant and machinery, or Police lost and stolen property auctions. All these auctions attract different types of buyers.
  • Always read the Auctioneer's Contract before you sign it.
    The contract should set out what commission the auctioneer will take.
    Commission is the price of the auctioneer's services and is often a percentage of the price that the goods sell for.
    Do not sign a contract with an auctioneer if you are unsure of any term in the contract. Discuss it with the auctioneer, a friend or a consumer assistance organisation.
  • A COMMON EXAMPLE  might be that the commission is "15 percent or $100, whichever is greater".  In this example, even if the goods don't sell for much, the auctioneer still takes $100 for their services.​​

Advice for Buyers at an Auction

  • Take the opportunity to examine the goods before you buy them - auctioneers normally hold inspection days before the auction so that you can check through the lots that interest you.
  • Make sure that you don't bid more than you can afford - once the hammer hits the table, the goods are yours.
  • Check the terms of sale - Can you afford the price when you add on the buyer's premium and cost of having the goods delivered?  (see 'Read the Small Print', above)
  • Check out the advice from the Consumer Protection & Standards branch of MBIE for Buying at Auctions.
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Photo used under Creative Commons from Cedpics

New Zealand's Professional Body of Registered Auctioneers.

Website by psyclone.rangers@gmail.com
Photos used under Creative Commons from Ewan-M, Melia Skinner