Auction Tips

Types of Auctions

Estate auctions. Most people think estate auctions are only held when someone dies and heirs need to liquidate the estate. But estate auctions can be held for lots of reasons. Maybe someone is downsizing, moving or upgrading all their furniture. Whatever the reason, if the seller is motivated to clear items out, buyers have a good chance of getting low prices. Two terms to know are "limited" and "unrestricted." A limited auction means at least some items will have reserve prices that must be met before they sell. In an unlimited auction, everything sells for the highest bid, regardless of how low the bid is.

Auctions for particular types of property. While public and estate auctions can include a wide variety of items, other auctions involve the sale of only particular items, such as livestock, cars or real estate. These types of auctions can be open to the public, but they are usually not for casual shoppers. Buyers at these types of auctions are knowledgeable about the type of item for sale and have a specific need they are trying to fill or trade in that type of item.

Online auctions. Online auctions are a different animal from in-person auctions. They are the most common type of auction these days since anyone can list just about anything on services like eBay. Entire sites exist devoted to online auction tips, covering everything from how to avoid getting scammed to step-by-step instructions on how to bid and tricks for winning items. But a few general auction tips for how to get deals when you buy something from an online auction are:

• Give yourself a reasonable limit on what you're willing to spend and bid accordingly. Online auctions can escalate quickly with little action on your part.

• Watch out for shipping charges. The item may have a great selling price, but if the seller imposes exorbitant shipping costs to make up the difference, you can get stuck shelling out more than you intended. If the seller is local, ask if you can arrange for pickup and avoid the shipping charges all together.
• Look into payment options. If the seller requires an escrow service for payment, ask if there are extra charges for the escrow and what they are.
• Ask about taxes. Most individual sellers don't require sellers to pay a sales tax in addition to the item price and shipping, but if the seller is a professional vendor, they might add it, and international sellers may add an import duty.
• Check out the seller. One of the most important auction tips is to know with whom you are doing business. The deal isn't much of a deal if you win and pay for an item and then it never arrives or isn't what you thought it was going to be. Read any feedback you can find about the seller and see if they have a good track record. If you have questions about the item, contact the seller and see if you're comfortable with their responsiveness.

General Auction Tips

Have a budget. Know how much you can afford to spend, in total or on any specific item, before you get to the auction and stick to it. If you get seized by a competitive spirit and haven't committed to certain limits, you may find yourself at the end wondering how you spent so much.

It's yours. If you bid on an item and win, it's yours. You can't back out later if you decide you don't really want the item or you bid more than you can afford. So, be sure you actually want what you bid on. And don't worry that adjusting your glasses will be misconstrued as a bid by the auctioneer. Most in-person auctions will use paddles or something similar for bidding, so unless you tell the auctioneer in advance that you have a special signal, he or she will only respond to obvious bidding.

Be ready to pay and haul. Most auctions will require you to pay for items right away and to either take your purchases with you or to have the items removed within a quick time frame. So, find out in advance what kinds of payment are accepted, and if you're buying large items, how much time you have to arrange for pickup. If you'll have to take the item with you, make sure you have appropriate transportation.

Auctions can be interesting and fun. These auction tips should help you walk away with some great deals!

Buying Used

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