Commission Bids
A commission/absentee bid is a bid that is left with the auctioneer before the auction takes place. Once you have viewed a lot and ascertained its condition you are in a good position to bid for the item. Before doing so you should be aware of all charges involved in bidding such as buyer’s premium and ARR so there are no nasty surprises when you receive your invoice.
When leaving a commission bid you are stating the maximum that you would like to bid on a lot. So if a lot is estimated at £400 - £500 and you leave a bid of £460, this is the maximum that the auctioneer will bid up to on your behalf. Here are a few scenarios that could occur when leaving a commission bid:
If a higher bid is taken in the room at the next increment above £460, which is £480, you will not be successful in winning the lot.
If there are multiple commission bids left against a lot then the auctioneer will use the second-highest bid as a guide when starting the bidding. (A bid of £460 and £500, bidding would start at £460).
If multiple clients have left commission bids of the same value, priority will be given to the client that submitted the bid first.
If you are the only client to leave a commission bid on the lot then there’s a chance you will be successful without reaching your maximum bid of £460. The auctioneer will start the bidding at the low estimate (assuming that it has been met by your bid) and wait for any bids to be submitted in the room, online or on the telephone. If there are no bids or no bids surpass your commission bid you will be successful. In this example therefore you could win the lot at £400 supposing that the low estimate is £400.
There are many ways of leaving a commission bid. This can be done in person, online, via email, via telephone and through a live bidding provider.
When leaving a commission bid in person at the auction house you will need to submit a form with the details of your bid(s). The form will require you to enter your name, address, phone number, email, marketing preferences (GDPR) and then the lot number followed by the bid amount. The personal details are needed so the auction house has a way of contacting you if your bid(s) are successful. With the new Anti Money Laundering legislation, it is also becoming more common for auctioneers to ask for ID before allowing you to bid. This is usually a photo ID (passport, driving licence etc.) and a proof of address (utility bill, bank statement etc.). Once your account has been created and validated your bid will be input into the system by a member of staff.
You can also leave a commission bid on the auctioneers website. Auctioneers will often have their auction catalogue accessible via their website. You will need to have an account on the website to bid. If you are a repeat customer then your account will already be fully set up and you will be able to bid without providing any further information. If you are a new client then you will need to create a client account. This will usually require your name, email, address, phone number, marketing preferences (GDPR) and your card details. Again, with the introduction of money laundering regulations, more auctioneers require you to enter your card details as a way of validating your identity. You may also be required to send identification (scans of documents via email) so the auctioneer can make further checks. This process can be quite lengthy so always leave ample time for the process to be completed.
Once your account is complete and you have been approved to bid you will be able to submit commission bids on the website. You can usually find a link to the current auction catalogue on the home page or auction calendar. Once selected, you will be redirected to the auction search page where you can scroll through the lots and filter the items by using the dropdowns and fields available. Choose the lot that you are interested in and submit your bid. After entering your bid you will often receive a confirmation email telling you the details of your bid. Your bids can usually be edited and deleted via the ‘My Account’ section of the website, but if this is not the case you will need to contact the auctioneer if you want your bids altering. Leaving a bid is usually completely free however, check the auction terms as sometimes the functionality is being driven by 3rd party software which will charge you a percentage of your bid if it is successful.
Most of the time the auction catalogue will be hosted locally on their website but sometimes auctioneers will redirect you to a live bidding platform as their website can’t list lots and receive bids online. If this is the case you will see a rather obvious styling change to the website and the URL will be different. Auctioneers most commonly use the-saleroom.com in the UK to list their lots so be aware of this as platforms will often charge you for leaving a bid via their website. In this case, you will need to create an account with the bidding platform and leave a bid in a similar way as above. You will be able to keep track of your bid(s) in the ‘My Account’ section of the website and you will receive an email if you are successful. Other websites such as Invaluable and Live Auctioneers are available and are a good way of viewing lots belonging to multiple auctioneers in one place. The downside, however, is that they will usually charge a percentage of the bid amount (between 1% & 4.95%) on top of the hammer and buyers premium.
Finally, you can also leave a commission bid via email or by ringing the auction house directly. This process is most similar to leaving a commission bid in person. You will be required to supply your details so an account can be created. After this process has been completed and your account has been approved the staff member will enter your bid(s) into the system. Again, leave plenty of time as you may need to send identification via email.
This concludes my article on leaving a commission/absentee bid. For more information about the auctioneer’s specific conditions please visit their website. They will cover the basics on their ‘How to Buy’ page and mention any charges applicable in their term & conditions.
