If you enjoy hunting for bargains, then you may enjoy attending the local auctions in your area. Live auctions offer wonderful opportunities for finding good deals on treasures that you can keep or sell for profit.
The most difficult part of buying at an auction is the first time you make a bid and controlling future bids. Once you break the ice and place a bid you will on your way.
There are different types of auctions, each with their own dynamics.
- Estate Sales
- Police Auctions
- Government and or Seized Property Auctions
- Public Auctions
- Charity or Fund Raising Auctions
The First Step - The Auction PreviewThis is the most important step in auction success. Find out when the preview of the auction will be held and always attend it. Items sold at auctions are rarely (if ever) covered by a warranty so it is your job to check out each item that you are interested in bidding on. Plug it in, try it out, turn it upside down and inspect all the features of the item when possible.
Tip - Previews are generally held days before the actual auction so it is a good idea to bring along a camera, flashlight, extension cord, magnifying glass and a notebook. On the actual day of the auction walk through and preview the items you are interested in to make certain they are still in the same condition.
Second Step - Doing the ResearchAfter the first preview go home or to the library and do your research. The Internet provides endless resources on product value, devaluation, repair costs, and the current value of a multitude of items.
Third Step - Determining the High BidLog the information you learned in your research and decide what the highest price is that you are willing to pay for the item. If you are interested in turning the product around for profit, do not omit all the cost involved in purchasing the item such as taxes and transportation.
Tip - Once you determine the most you are willing to bid on something log it in your book and stick to it when the bidding war begins. It takes discipline but it is what keeps a good bargain a good bargain.
Have Your Money ReadyIf you place a bid on an item and you win the bid you cannot pull out of the deal so come prepared with the proper amount of money to cover your bids. Contact the auction company before you go and find out what forms of payments they accept such as personal checks and charge cards.
When Is the Best Time To Attend?Weekend auctions are the most populated adding a lot of pressure to the bidding war. Try to attend mid-week auctions instead. The attendance is usually considerably smaller which increases your chances to get the items you want for the price you are willing to pay.
Look for Odd Items on the Auctions ListingsIf an auction is centered on a special interest but a few items that seem out of context with the rest of the items are listed, chances are you will scoop those items up at a super price. For example, if it is an Oriental rug auction but they list a few office desks you may be able to get a desk at a great price since most people attending are there for the rugs.
Become a RegularBeing recognized by the auctioneers is to your advantage because they will be more inclined to approach you and show you items that may be of interest to you. You do not have to be a big spender to get the respect of an auctioneer.
Tip - Remember not to waste the time of those helping you by asking about items that you really are not interested in bidding on.
Signup on Mailing ListsAsk to sign up on the auctions mailing lists so that you can get advanced notice of when an where auctions will be held and a list of items being offered.
Know When to Start BiddingBeing the first person to bid on an item is not always the best strategy. Patience is an important key to good bidding. Bidding late into the game can make other bidders think that the price is going to go out of their range and they may be more inclined to pull out of the bidding war.
Sold!If you win the bid you are obligated to pay for the item. You cannot change your mind after the bidding has ended. You can stop at anytime during the bidding process but once you hear the words -- Sold -- consider the item yours.
Tip - If you have any reservations about an item you are bidding on, pull out of the bidding process.