FAQ’s (Online Auctions & Auction Rules)
Online Auctions & Auction Rules
Most frequent questions and answers
You will need to refer in detail to each auctions specific Terms and Conditions but in general be mindful of the following general rules of auctions:
- Bids exclude VAT (ie VAT will be added onto the final amount after commissions are added at the end)
- Bids exclude commissions (these could be buyers commission and / or internet surcharge)
- Items are sold “voetstoets” which basically means what you see is what you get.
- If you are the highest bidder at the end of the auction – you are legally bound to purchase the item.
An auction is a system of buying and selling goods or services by allowing people to bid and selling to the highest bidder. The bidders compete against each other, with each subsequent bid being higher than the previous bid. The auctioneer will start at a relatively low price to attract a large number of bidders. The price increases each time someone makes a new, higher bid until no other bidders are willing to participate, and the highest bidder takes the item.
An online auction is conducted over the Internet. OnlineAuctions.Africa offers 2 types of online auctions: Timed and Live Webcast Auctions. In all auctions hosted on our platform, the item is sold to the highest bidder (if bidding has reached or surpassed the reserve price).
A timed auction is an automated process. The bidding for each lot is opened at a certain amount, for a set period of time. During this time, you may place a higher bid at a defined bidding increment. Bidders are automatically informed by email if they are the winning bidder, or if they have been outbid by another competing bidder. At the end of the defined bidding period, if the highest bid offered meets the seller’s reserve price, the lot is sold. Bidding on all lots in a timed online auction will close at a specified time.
A Live Webcast auction is identical to a traditional live auction except you can bid online in realtime along with those gathered in the auction room. The Auctioneer controls the bidding in the room and the bidding online. Live video and audio streams keep you connected with the auction as it happens in real time.
A reserve price is set by the auctioneer and the seller, it is the lowest possible price acceptable for sale. It is not knowen by the bidder. In a timed auction, the system will automatically sell the item should the final bid have reached or surpassed the reserve amount. In Live webcast auction, the auctioneer will only sell if he is satisfied with the offer.