Many people are afraid of auctions. It’s a fact. The auctioneers talk so darn fast and it seems like everyone there knows more than you do. But when it comes to getting great deals, you can’t beat a good auction.
Most auctions have a preview day or time. This is a period right before the auction that you will be able to closely inspect items that will be sold. The number one key to being successful at an auction is to know what you want to bid on and more importantly, know what you are bidding on. The preview will allow you to look closely at the items so that you can better determine the authenticity and condition of the items.
Do your homework. While you don’t have to pour through a dozen books to determine the value of every item you will be bidding on, it is helpful to know the general range that those types of items sell for. If nothing else, have a firmly fixed number of what you will pay for that item and stick to that number. It is very easy in the rush of an auction to get caught up in the excitement and to overbid on an item. If you think before the auction that you would only pay $5 for an item, when the bidding goes up over $5, stop bidding. Tell yourself that there will be other auctions and other items to bid on. You don’t need to have that item. If you don’t do this, you may end up paying $100 for that $5 item.
When you attend an auction, you will be asked to register. Typically, you will be asked to fill out a little card with information about yourself. You will probably also be expected to give your license or some other form if identification for the auction company to hold for the duration of the auction. You will get it back either when you leave, if you haven’t won anything, or when you buy what you have won. The auction company does this to ensure that you will not leave without paying. In exchange for your identification, you will be given a bidder number.
Most auctions will have what is known a buyer’s premium. This is an extra fee that you will be expected to pay when you win the auction. Depending on the value of the items being sold, a buyer premium can range from 3-20%. A buyer’s premium works like this. Let’s say you win an item for $100 and there is a buyer’s premium of 3%. When you go to pay, you will be expected to pay $103 (plus any local taxes). The buyer’s premium is how an auction company normally makes its money. It is a fee you pay for the privilege of being able to get a good deal on the items.
When the auction begins, do not be intimidated by the auctioneer. The auctioneer will speak fast, but he has been trained to speak clearly. All auctioneers must be certified. They must either have attended an auctioneering school or have apprenticed under a certified auctioneer. If you listen carefully, an auctioneer is very easy to understand, but you do have to be quick. It is advisable that while bidding on an auction you make sure that you are within plain site of a spotter (these will be the auctioneer’s helpers). Listen to what the auctioneer is saying, he will be stating the price that the item is currently at. Also keep in mind that the auctioneer has also been trained in how to drive the price up for an item. He will attempt to do this by creating a sense of urgency and need. Remember that fixed number in your head and don’t let the auctioneer push you into bidding more than you should.
Try not to be the first person to bid on the item you are interested in, unless the price gets down so unbelievably low that you can’t pass it up. The auctioneer will start the price at just below what the seller would like to get for the item. If no one bids he will continue to drop the price until someone does bid (unless there is a reserve, which is a price the seller won’t sell below). You want to drive that price down as low as possible. The best way to do this is not to bid until someone else does.
Once you have won an item, one of the spotters will record your win, the price that you won it for and your bidding number. You don’t need to keep track of your winnings but it is always a good idea to do so just in case the spotter makes a mistake.
Once you are done bidding, you will need to pay for the items you bought. All of your wins will have been recorded and tallied by the time you are ready to go. Pay for your items and turn in your bidding number. Once you have done that, you will get your identification back and you will be free to take the items that you won.
Attending auctions can be a great hobby or even a career. Many people these days buy items at auctions and then either sells them at flea markets or on eBay. Whatever you do with what you win, it is a great way to save a little money or find that one of a kind item.