BUYING AT AUCTION
What is the Buyer’s Premium?

The Buyer’s Premium was a creation of the two major English auction houses, Sotheby’s and Christie’s of London. The auctioneers at these two firms invented the premium, proved its worth, and ultimately exported it around the world. It was first introduced to North America in 1975, where Christie’s New York Gallery first implemented a 10% buyers premium (it’s now 20%). Within days, Sotheby’s Manhattan Gallery quickly followed suit, and since then it’s been a growing tool in use by all progressive auction companies.
Basically, A buyer’s premium is a marketing tool used by auctioneers to induce sellers to bring quality assets to auction. The premium is a stated percentage that an auctioneer adds to the highest bid for each lot sold to determine the lot’s selling price. It’s a price surcharge provided for in the terms of the auction and assessed against buyers on their purchases.

Here’s how it works. If an auction charges a 10% buyer’s premium and a lot is sold for $100, the lot’s selling price is $110. The price is calculated by adding the 10% surcharge ($10) to the $100 hammer price

Understanding a key principal of auctioneering explains a lot about the popularity and growth of the buyer’s premium. An auction equation has two sides, the buyer who comes to purchase the goods up for auction, and the seller, who offers the goods for sale. Since the Depression Era, the sellers have been more valuable to the auctioneer than the buyer. That’s because sellers of quality assets are much harder to get than are quality buyers for those assets. If this weren’t true, every auctioneer would be booked solid with quality auctions, and that’s far from being the case.

The foremost challenge facing modern auctioneers has nothing to do with conducting an auction. It centres on the constant struggle to attract sellers of quality goods. It’s much easier for auctioneers to attract these sellers if they can offer a worthwhile incentive, such as a reduced selling commission. The buyer’s premium makes it possible to provide this inducement when an auctioneer either (a) does not increase his commission rate, as business overhead would otherwise warrant, or (b) actually reduce the rate.

The buyer’s premium has become an invaluable marketing tool. It was designed to lure sellers to the auction markets by offering them reduced selling commissions. An auctioneer can afford to reduce (or at least not increase) a commission for a seller by offsetting the reduction with the use of the buyer’s premium, along with the seller’s agreement to pay the premium collected to the auctioneer as an additional selling commission. This commission flexibility is powerful bait that brings many desirable goods to the auction markets that would not otherwise be offered. Some buyers overlook this advantage of the premium, while others jump at the chance to buy goods that they would not otherwise see at auction.

Why is HST charged at Auctions?

Taken from Revenue Canada’s Web Site “SS177(1.2)87. A supply of tangible personal property made by a registrant auctioneer on behalf of a principal in the course of the auctioneer’s commercial activities is deemed to be made by the auctioneer and not the principal. This means that the auctioneer will be responsible for collecting and remitting tax on all taxable supplies (other than zero-rated supplies) of tangible personal property made by auction, even if the principal would not have been required to collect tax on the supply, and the auctioneer’s commission will not be taxable.”

Are there Exceptions?
Surprisingly, yes, there are a few exceptions, such as the sale of Coins and Monies.

Why is there a Preview?

The pre-sale exhibition, or PREVIEW gives you the opportunity to scrutinize the items prior to the auction, and it generally begins 2 hours before the auction starts. You are strongly encouraged to attend this preview and to closely examine all the lots that interest you. It should be noted at this time that all lots sold at our auctions are sold strictly “AS IS”, it is up to you to inspect every item beforehand to your satisfaction. This is what the preview is for, because once the Auctioneer declares “SOLD” you are now the proud owner of that item, regardless of any flaws, imperfections, or what you “thought”. We encourage you to speak with one of our staff about any piece you find interesting. What happens if you miss the preview? No problem, you’re more than welcome to inspect each item to your satisfaction during the auction. If at any time during this process you have any questions our knowledgeable staff would be more than happy to answer any questions, you might have. It is a good idea at this time to set a general price limit on each item that your interested in, it is easy to get caught up in the excitement if you don’t. The best way to do this is to think “What is it worth to me?”, after that everything else is easy.

BIDDING AT AUCTION
What is a Phone Bid?

A phone bid is a way to still participate in the live auction yet not attend the auction, by bidding via telephone through one of our trained staff. It offers more flexibility than standard absentee bidding. A representative of our staff will call you from the auction room several minutes before the item you are interested in goes to the block. The representative will talk you through the auction and bid on your behalf. Please accept that we do not accept phone bids for lots with a low auction estimate of less than $500.

What is an Absentee Bid?

Absentee Bidding Liptay Auctions offers absentee bidding as service for buyers who are unable to participate in the live auction, or by telephone. Absentee bids work exactly as if the bidder were in the auction room bidding up to a predetermined maximum bid, except that the price limit is confidentially given to Liptay Auctions. Our Auction Staff will try to bid just as you would, with the goal of obtaining the item at the lowest price possible. “Buy Bids” will not be accepted; all bids must state the highest bid price the bidder is willing to pay. In the event that identical absentee bids are submitted, the earliest bid submitted will take precedence. Liptay Auctions will contact the Absentee Bidder if their bid is successful, but we will not contact you for unsuccessful bids.

The Absentee Bid Form can be obtained from the registration desk.

How does a Live Auction Work?

Live Bidding Once the sale has begun, the auctioneer will announce each lot in numerical order as listed in the catalogue, and then open the bidding. Bidding progresses in sequentially higher increments. To place a bid simply raise your hand or paddle for the auctioneer to recognize your bid. (And don’t worry, just by scratching your nose or waving your hand, you will not be the reluctant owner of a painting). If no one tops your bid, the auctioneer will state that the item is sold, and then announce the hammer price and your bid number. It is advisable to keep your paddle raised until you have reached your preset maximum bid, there is nothing worse than having the auctioneer miss your bid because you were playing the up-down game and were not fast enough in raising your paddle the last time. Also it’s important to clearly show your intent to bid, it is very disappointing to have the auctioneer miss your bid because you didn’t show clearly enough that you were bidding. Raise it and Raise it HIGH!

AFTER THE AUCTION
Are there Packing Boxes available?

Yes, Usually the packing boxes are located at the back of the auction room, these are offered free of charge as a service to our clients.

Is Delivery Available?

Delivery is available for a small fee, but please understand we are not movers, we offer it only as a service to our clients, therefore our policy is threshold deliveries only.

SELLING AT AUCTION
Post Sale Notification & Payment

After the sale of all your item(s) is complete you can expect from Liptay Auctions a complete listing of every item sold by us, its description and the price it sold for, and a complete breakdown of our fees and expenses incurred, and of course your cheque. All this should be completed within 6 days of the auction. We’ve made selling as Quick and Easy as possible.

What do I do if I want to consign items or have an estate to sell?

The first step is to contact us so that we can set up an appointment with you to inspect the item(s) that you wish to sell, so that we can determine the best route to take to sell the items for you. There are many advantages to selling at auction, but the most important is the assurance of a fair price. Through competitive bidding, the seller knows there is no limit to the price an item may realize. Another advantage to selling at auction is access to our wealth of knowledge. Once you make the decision to sell at auction, we will guide you through the process- going over the contract, discussing the best sale category for your pieces, and setting a sale date. Our experienced staff also won’t miss items of significant importance that may be overlooked in “yard”, “house” and “estate” sales. Whether you wish to consign an individual item, a collection, or an entire estate, we can accommodate your needs. For more information about our services, please call (506) 859-7497

OTHER QUESTIONS
Exposure

Even the best property will not reach its potential unless the right buyer knows about it. We do extensive presale marketing, either via the newspaper, the radio, our catalogue, and most of all via our website. We have a large clientele which includes local, national, and international buyers, who check our online catalogue daily.

When is the next auction?

We advertise all of our auctions in local newspapers under the auctions column, we also send out e-mails to registered bidders, and we post all of our upcoming sales on this website under the up-coming sales page

How do I reserve a seat?

You can reserve a seat by arriving early during the preview, or in limited circumstances by calling us to reserve a seat.

What if I have to leave the auction, can I have a piece put up earlier than it’s catalogued number?

Unfortunately no, If you have to leave and you just have to have an item we offer you to use our Absentee Bid Services. Just ask for a form at the registration desk.

I didn’t notice a scratch, crack or flaw. Can anything be done?

The majority of items sold at Liptay Auctions come from Estates and Private Collectors, and may show signs of use and age. All property is offered in “AS IS” condition, and prices are not reduced due to pre-existing flaws. Once again we encourage you to thoroughly inspect the property before you bid.

I won the bid, but now I’m not sure I like the item. Can I cancel the sale?

We encourage everyone to bid wisely and responsibly. At the moment the auctioneer says “SOLD” at the end of the bidding on each lot, the title transfers to the new owner. The sale is final, and there are NO returns.

What is an Absentee Bid?

Absentee Bidding Liptay Auctions offers absentee bidding as service for buyers who are unable to participate in the live auction, or by telephone. Absentee bids work exactly as if the bidder were in the auction room bidding up to a predetermined maximum bid, except that the price limit is confidentially given to Liptay Auctions. Our Auction Staff will try to bid just as you would, with the goal of obtaining the item at the lowest price possible. “Buy Bids” will not be accepted; all bids must state the highest bid price the bidder is willing to pay. In the event that identical absentee bids are submitted, the earliest bid submitted will take precedence. Liptay Auctions will contact the Absentee Bidder if their bid is successful, but we will not contact you for unsuccessful bids.

The Absentee Bid Form can be obtained from the registration desk.

I won the Item! Now what?

The next step is to pay for and pick up your purchases. Accepted forms of payment are Cash, Cheque with proper ID, Interact, and VISA/MC). Don’t forget the Buyer’s Premium and that HST will be added to the sale price.

Delivery is available for a small fee, but please understand we are not movers, we offer it only as a service to our clients, therefore our policy is threshold deliveries only.

GENERAL TERMS & CONDITIONS
General Terms and Conditions

TERMS AND CONDITIONS

Bidding by number only. Every Bidder must pre-register for a Bid Number.

All Items sold “AS IS” with all imperfections. Any descriptions by Auctioneer, Staff, and Catalogue, are for I.D. purposes only. While the Auctioneer has endeavored to catalogue and describe correctly each lot to be sold, guarantee is not made of the correctness of the catalogue or other descriptions of the physical condition, size, importance, authenticity, attribution, provenance, exhibitors, literature, historical relevance of any lot and no statement anywhere shall be deemed such a warranty, representation or condition, and no sale will be set aside on account of any imperfection not noted.

Please inspect items before bidding for your own satisfaction.

The Final Bidder acknowledged by the Auctioneer shall be the purchaser.

Liptay Auctions or Auctioneers, reserve the right to reject a bid from any bidder, and to advance the bidding at their absolute discretion.

In the event of any dispute between bidders, the auctioneer shall have sole and final discretion either to determine the successful bidder or to re-offer and resell the article in dispute.

If any dispute arises after the sale, the sale records of Liptay Auctions shall be conclusive in all respects.  It is the sole responsibility of the purchaser to secure purchased items to their satisfaction.

Each item must be paid in full TODAY(sale day) by cash or cheque with I.D. and payable to Liptay Auctions, Interac or Visa, and MasterCard. Title of ownership transfers when cheques have cleared the bank. Nothing is to be removed until paid for. H.S.T. is applicable on all items.

Be Careful. You are here at your own risk. Administrators, Auctioneer, and Auction Staff are not responsible for any accidents or public liability whatsoever in regards to this sale.

***10% BUYERS PREMIUM APPLICABLE ON ALL PURCHASES***