Auction Buying 101

Do Your Homework

If you’re new to auctions, that first means learning about the different kinds of auctions out there. Of course you can take part in live auctions or internet based auctions, but there are a few other distinctions you should know:

• English Auction - The most common kind of auction. In English auction, buyers openly bid against each other for an item, with the item going to the highest bidder. The price of the item is controlled by the bidders, in that it is only worth what people are willing to pay, but a seller may without sale if their “reserve price” - or lowest acceptable price - is not met.

• Dutch Auction - This one works in reverse. The auctioneer starts the bidding at a high price, and continues lowering the price until someone accepts.

• Silent Auction - Bidders submit their bids in writing, and do not know if there are other bidders or what their bids might be. The item goes to the highest bidder.

• Estate Sale - An estate sale involves the auctioning off of all the belongings of person after their death. Generally, the family will remove the pieces they want to hold on to, and a professional auction house will come in, evaluate and price the goods, and have a sales, usually lasting 3-4 days. Estate sales are great places to get collectables and antiques.

Now that you know your auctions, you still have a little bit more homework to do before the actual sale. Most auction houses have preview periods for a few days before the sale, where you can come and check out what is on offer. Additionally, they may offer a catalog with details about the items. Go and see what they have, pick out the pieces which interest you, and research them before the sale. A quick internet search will give you some idea of the value of the items.

For an online auction, check for similar items in other auctions and see how the prices are falling. Additionally, don’t be afraid to ask questions about the history and condition of the items you are considering buying.

Bidding Tips

So, you’ve done your research and you’re to brave the auction itself. Here’s how to keep yourself in the game:

Live Auctions

• If you want to bid on an item, be prepared to wave your arms and card around to get the auctioneer’s attention (once the bidding opens, of course). If you decide to enter the bidding late, a polite, “over here” might be necessary. After that, a nod will keep your bid alive.

• If you want to stay in the bidding, maintain eye contact with the auctioneer. Breaking your eye contact is sometimes seen as pulling out of the bidding. If things get too rich for your blood, pull out of the bidding by shaking your head.

• Don’t try to view the items while the bidding is going on. Remember, that’s why you do your homework. Once the bidding has started, you’re out of luck.

• Set a ceiling price for yourself and stick with it. Don’t get caught up in the excitement and break the bank.

• Find out in advance what payment methods are acceptable.

• Play it cool. There are people who visit auctions simply to drive up the prices of the goods. Never let ‘em see you sweat.

Online Auctions

• Check the selling history of the auctioneer.

• Online auctions offer the best chance to do research, so make good use of your time to get the best deal.

• Remember to factor the cost of shipping into your bidding budget.

• Try to bid near the end of the auction - if you bid early and often, you’ll only drive up the price.

Additional Info

Now that you’re armed with auction buying knowledge, these sites will help you get started.

• National Auction List - Find live auctions listings by area or category.

• Auction Zip - Find live auctions in your area.

• eBay - Of course

• The Bid Floor - More bidding advice, and help finding auctions

• Auctions Galore More types of auctions explained.