We have compiled some of the most frequently asked questions here. If there is anything that you would like to know that is not covered on our website – please contact us, we will be happy to help you.

Remember, at many Auctions, the majority of people are visiting for the first time – and each Auction is slightly different, please do not feel intimidated if you’re not sure what to do. Our staff will be happy to walk you through the process and explain things to you. Don’t worry - we won’t sell you a house for touching your ear or waving to a friend!

Hammersmiths Auctioneers conducts many different Auctions and all are open to the public. You are welcome to come just to watch. Please come early to inspect the property, we facilitate on-line and telephone bidding and therefore try to keep to a strict timeline to ensure maximum convenience for everyone.

If you have a property that you would like to be considered for Auction – please go to our Sellers Information page for additional information or Contact Us to discuss your options.

Essentially there are three types of Auctions:

1. Absolute Auction (or auction without reserve)

• The property is sold to the highest bidder.
  
• Since a sale is guaranteed, sellers and buyers can be assured that the property will be sold.
  
• Many buyers and sellers, as well as financial institutions and government agencies favor this method for a quick guaranteed sale.

2. Minimum Bid Auction

• The minimum bid will be published and announced at the auction. The auctioneer accepts bids at or above the published minimum bid.
  
• Buyers know that they will be able to buy at or above the minimum bid and are therefore aware of where their bid has to start.
  
• The seller gets their acceptable level and the buyers determine the maximum they are prepared to purchase the property for in the current market.

3. Reserve Auction (Sellers Confirmation)

• The seller predetermines the price at which they will sell the property and are not obligated to confirm a sale other than at a price that is acceptable to them.
  
• The high bid is, in effect, an offer to which the seller reserves the right to accept or reject within a specified time – normally within minutes following the auction.

In all of the above cases the Seller and the Buyer both get what they want - at a price that is acceptable to them. An Auction removes what can amount to weeks of negotiation and uncertainty and can be a quick and uncomplicated way for all parties to come to an agreement in the sale and purchase of Real Estate.

How do I preview the property?
Each auction has published Preview Dates, these are scheduled open times when you can come and inspect the property.

How do I register to bid?
When you arrive at the auction – you will be directed to the registration area, here you will need to show your ID and fill out a bidder card. This will give you a bidder paddle and number. You may pre-register to bid by contacting us directly before the auction.

What do I need to bring to bid on Real Estate?
You will need to bring a Cashiers Check or Bank Guarantee letter in an amount specified before the Auction. Immediately following the auction the winning bidder will need to bring the deposit to 10% of the total price. The balance of the contract will be due at closing. If you intend to obtain financing, you will need to qualify for your loan before auction day; the winning bid can not be contingent on financing.

Bidding on Real Estate – By registering to bid, buyers acknowledge that they have reviewed and understand all the information in the bid package and the Contract for Sale agreement. The buyer also acknowledges that immediately following the auction they are prepared to execute the Contract for Sale and pay the appropriate deposit required in any one of the acceptable forms.

What is a Buyers Premium?
A Buyers Premium is a percentage that is added to the bid price to determine the total purchase price. In most Real Estate Auctions there will be a 10% buyer’s premium added to the successful bid to create the total purchase price.

Bidding for Personal Property/Additional items. (Jewelry/Art/Cars etc)
In most cases Items will be sold piece by piece. A 15% Buyers Premium will be added to the top bid. We accept Cash, Visa, MasterCard, Discover and American Express.

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