Q 29, 30 : If a person holds an auction for his own commodities, should he begin the auction with a price which he has fixed or wait till one of the buyers starts the auction?
Does the auctioneer have the right to raise the price during the auction,
or should he wait till the buyers stop raising it if he wishes to buy it and then he raises the price?
If the auctioneer who is holding the auction wishes to buy the commodity, there is no wrong to begin the auction with his own price (Part No. 13; Page No. 121) or raise it during the auction after the offer of one of the bidders, and if none of the bidders outbids. In this case, the auctioneer has the right to take it. However, it is unlawful to start a price or to outbid for something that he does not want to buy or to delude a buyer that its price is higher than this or to stop the overbidding of his Muslim brother and take it at a price lesser than its real value. If the commodity is his, he should not start bidding or overbid it.
May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.