Your Guide to Buying and Selling Goods at Auction
Finding high-quality goods for auction in Nairobi offers an excellent way to acquire assets like vehicles, office furniture, electronics, and machinery at competitive prices. These auctions are a primary channel for banks to dispose of repossessed assets, for landlords to recover rent arrears, and for businesses to liquidate stock. As licensed auctioneers located at International Life House, Mama Ngina Street, Swipe Recoveries Experts Ltd provides a transparent and regulated marketplace for both buyers and sellers. We ensure that every auction is conducted professionally and in strict adherence to Kenyan law, giving you the confidence to bid on and acquire valuable goods.
The Legal Process of Auctioning Goods in Kenya
The auction of movable goods in Kenya is a legally defined process, primarily governed by the Auctioneers Act (Cap 526). This act ensures that the process is fair, transparent, and conducted only by licensed professionals. Goods come to auction through several legal avenues. One common path is Distress for Rent, where a landlord, through an auctioneer, seizes a tenant's goods to recover rent arrears. Another is through a court order, where a court bailiff or auctioneer executes a warrant of attachment against a debtor's property to satisfy a judgment debt. Banks and financial institutions also use auctions to sell repossessed assets, such as vehicles, after a borrower defaults on a loan.
Before goods can be sold, the auctioneer must issue a Proclamation of Attachment. This legal document lists the items that have been earmarked for seizure and sale. The debtor is then given a specific notice period, typically 7 to 14 days for movable goods, to settle the outstanding debt. If the debt remains unpaid after this period, the auctioneer can remove the goods and advertise them for public auction. The advertisement must specify the date, time, and location of the auction, providing the public with an opportunity to participate.
How to Participate: Bidding on Goods for Auction
Participating in an auction for goods is a straightforward process. The first step is to look for auction advertisements in local newspapers (like the Daily Nation) or on the websites of auctioneering firms. These ads provide crucial details, including the types of goods available, viewing days, and the auction venue. It is highly recommended to attend the scheduled viewing day. This allows you to physically inspect the items you're interested in. Remember, goods at an auction are typically sold on an "as is, where is" basis, meaning the seller provides no warranties, and the buyer is responsible for collection.
On the day of the auction, you will need to register to bid. This usually involves providing identification and paying a refundable bidding deposit. The deposit amount varies depending on the value of the goods; for example, a deposit of KES 50,000 might be required to bid on vehicles. The auctioneer will then begin the sale, item by item. To bid, you simply need to catch the auctioneer's attention and signal your offer. The highest bidder wins the item. After the auction, the successful bidder pays for the item and arranges for its collection.
Understanding Auction Costs and Finding Bargains
To get the best value from an auction, it's important to understand the associated costs and bid strategically. The main cost is your winning bid amount. In some auctions, a 'buyer's premium' may be added to the hammer price, which is a percentage-based fee paid to the auction house, though this is less common for distress-related auctions in Kenya. The most common upfront cost is the refundable bidding deposit, which can range from KES 10,000 for general goods to KES 100,000 or more for high-value vehicles. This deposit is returned immediately if you do not win any items.
The key to finding a bargain is preparation. Before the auction, research the approximate market value of the items you are interested in. This will help you set a maximum bidding limit for yourself. During the viewing day, thoroughly inspect the condition of the goods to factor in any potential repair costs. By sticking to your budget and not getting carried away in the bidding excitement, you can secure goods at prices significantly below retail value. For sellers, the costs are primarily the auctioneer's commission, which is calculated as a percentage of the sale price as stipulated in the Auctioneers Rules.
