Auctions
The History
The word "auction" is derived from the Latin augēre, which means "to increase" or "augment".
For most of history, auctions have been a relatively uncommon way to negotiate the exchange of goods and commodities. In practice, both haggling and sale by set-price have been significantly more common. Indeed, prior to the seventeenth century the few auctions that were held were sporadic and infrequent.
Nonetheless, auctions have a long history, having been recorded as early as 500 B.C. During the Roman Empire, following military victory, Roman soldiers would often drive a spear into the ground around which the spoils of war were left, to be auctioned off.
The Romans also used auctions to liquidate the assets of debtors whose property had been confiscated. For example, Marcus Aurelius (of ‘Gladiator’ infamy) sold household furniture to pay off debts, the sales lasting for months. In some parts of England during the seventeenth and eighteenth centuries auction by candle was used for the sale of goods and leaseholds. This auction began by lighting a candle after which bids were offered in ascending order until the candle spluttered out. The high bid at the time the candle extinguished itself won the auction.
Further information and history can be found at www.en.wikipedia.org/wiki/Auction.
The Reality
Undoubtedly, auctions do have a place in the toolbox of options for potential vendors. However it is obviously not a viable or sensible option for every property. In brief we would argue the case for a property to go to auction only if a genuine ‘Unique Selling Point’ exists or if the property has qualities that elevate it substantially above the ‘normal’ market. There does not have to be a clear and identifiable reason as to why auction is the best option in a particular case; however it stands out that there must be a combination of:
- Demand
- Interest/Intrigue
- Noteworthiness
Many notable Bailiwick landmarks have been sold by Auction, often with many islanders attending merely to observe.
The Process
How does a sale by public auction operate?
The auctioneer starts proceedings at the scheduled time by introducing himself, welcoming those present and giving a brief description of the property being offered for sale.
Auctioneers in Guernsey must be registered with the States of Guernsey and have to pay a licensing fee annually. The license is issued by the States on receipt of satisfactory references, including enquiries as to whether the applicants Douzaine consider them to be ‘of good character’. The license costs £3 per annum, which whilst a small sum by today’s standards, but substantial when considering this was the price when introduced in 1914.
The law has remained relatively unchanged since 1914 and provides that the Auctioneer reads out the conditions of sale that govern the auction and that are binding on anyone who makes a bid for the property. No one must bid at an auction unless they are prepared and able to complete the purchase if their bid is successful. The deposit must be paid immediately by the successful bidder and fully binding conditions of sale signed.
People are then invited to ask any questions before the bidding starts. The auctioneer then commences the sale by suggesting a figure and bidders raise their hand or in some way signify that they wish to make that bid. Auctioneers and their team of ‘spotters’ are experienced and trained. The old cliché about ‘not scratching your nose or waving to a friend’, whilst amusing, really doesn’t apply. There is no risk of inadvertently buying a property and the bidding continues until the auctioneer is sure that everyone wishing to make a bid has had an opportunity to do so.
In addition to being physically present, phone bidders may also be in contact with a member of the Auctioneers team.
To discuss whether an auction is a practical and feasible option for your own property, please contact David or John on 729891.