Buying at Auction - Part Three (Final)

In the last couple of weeks I have shared some of the early processes in buying at auction. You can read about viewing days here and registering to bid here. But it's time to get to the most important fun part of the auction process, bidding for an auction lot, and hopefully winning.

Tullochs Auctions

Most general auctions may be made up of a combination of items that either have a reserve price, or don't have a reserve price. A reserve price is a price set by the seller that they do not want the item sold under. If the item fails to reach the reserve price at auction then the item is 'passed in' or in other words isn't sold and may be offered again at a forthcoming auction...more about this after!

Tullochs Auctions

Often items that have no reserve price may be lots that come from a deceased estate where the family may just want the items sold or where the expected value or interest in a lot may not be considered high enough to warrant a reserve price attached.

Armitage Auctions

You need to pay close attention to the auctioneer who will explain the terms and conditions of the auction. Read more about buyer's premiums here. Auctioneers will also generally speak quite fast and so you need to be listening for your lot number to be called. Fortunately the numbers are usually called sequentially so that makes it easier. The exception to this may be if a particularly desirable item has been advertised to auction at a certain time. The auctioneer might interrupt the sale to conduct the bidding on that item and then return to the regular lots.

Armitage Auctions

Auctions can be crowded and may or may not have seating. Put yourself in a position where the auctioneer can have eye contact with you, and be prepared to raise your hand or call out to bid, especially in the first instance. Once the auctioneer sees your interest they will keeping looking back to you for bids. Generally the auctioneer will start the bidding at a price that is hoped to be achieved. If no one makes a bid they will drop the price until someone starts to bid.  Bids will then go up in increments until the highest price over the reserve price is achieved. If no-one bids at all the lot will be 'passed in'. Bidding increments can range from $5 to $10 or to $50 or even $100 depending on the value of the item and the interest shown. Increments can also be changed midway through the bidding if the lot is showing a surprising amount of interest from bidders.

Armitage Auction

Rule of thumb is that you generally wouldn't offer a bid at the auctioneer's opening price, but will let the price drop. This is probably the standard procedure but there are times when it can work in your favour. Sometimes putting in a bid at the opening offer can silence other competitive bidders, they may assume you really want the item and are prepared to pay top dollar, and it signals to everyone immediately your interest in the item. This move is not without its risks though, and you need to be fairly sure of the items value and what you are prepared to pay. 

Armitage Auctions

On the other hand waiting for the auctioneer to go to bottom dollar, while in many cases would serve you well, can often also lead to the bidding going beyond what you would expect. Say for instance you were after a small vintage chest of drawers, and you were hoping to get them for around $30. If you wait for the auctioneer to drop the price to $20 before you bid, then someone else may well make a bid after yours at $30, which means you will then need to bid $40 to have a chance at being the successful bidder. Often if you had bid at the $30 mark there would have been no subsequent bids. It's a bit of a strategy game!

Tullochs Auctions

Remember you will be bidding against other interested buyers who are present and 'book' or 'absentee bids' buyers, these are the people who couldn't attend the auction in person and for whom the auctioneer is bidding on behalf of. You can read about this process here. 

Tullochs Auctions

If auctions are new to you then you will see many confident bidders or bidders to whom the auctioneers seem to turn to, to see if they are interested. These bidders would be regulars at the auctions and are probably buying for their own businesses, be it antique, second-hand stores or market stalls. There is no need to feel intimidated by their confidence, the auctioneer is just as happy to accept your money if you show the interest. In fact you can learn something important from these buyers and that is, that there will always be something similar down the track so don't bid beyond what you can afford to pay.

Armitage Auctions

So take a deep breath, raise your hand, speak up, nod your head all in direct line of the auctioneer...whatever it takes to get noticed, and keep bidding...until either it goes beyond your price and you gracefully drop out, or until you're the winning bidder... yay! It's then just a matter of raising your buyer's number (don't forget that!) for the auctioneer to record.

Armitage Auctions

The final step is paying for your item at the office, which can often be done before the auction finishes, just give them a little time to process your lot number. Then collect the item. If it's small you can often take it with you before the auction ends. If it's very large you may need to wait.

I said I'd mention lots that are 'passed in'. You can go to the office after a lot has been 'passed in' and usually make an offer on it. The auctioneer will get back to you if your offer has been accepted.

Armitage Auctions

So there it is...the mystery of auctions. I hope you can get to enjoy an auction in the near future and that these tips will be helpful. Lisa xx

Buying At Auction - Part One

Viewing Days

Of everything I do in relation to my business venture, the one thing that elicits the most interest among my friends and clients is buying at auction. I think in general most of us are fascinated and excited by auctions, perhaps it's the thrill of potentially getting a bargain, the competitive nature of the buying, or if you're like me it's the ability to take my time on viewing days and sift through all the goodies on offer imagining what I could do with them.

 

All general auctions will have a viewing time, this may be a few hours before the auction starts or it may be for several days prior, you should check in advance. If you are looking for something in particular, or looking for inspiration, then it pays to take advantage of the viewing times. It is at this time when you can rummage through the 'lots' (a numbered item or group of items on offer). You can pick things up and measure them, check for damage, check for quality and markings, wipe off a bit of dirt and dust to see real colours and look for hidden pest damage (like wood borers in wooden furniture). This is very important as all items sold at auction are sold 'as is' without warranty. If you buy it, you can't return it.

 It's also the only time to search for a gem among the rocks, as it were. Often because many auctions are selling off deceased estates, the 'lots' will be packed with a mixture of desirable and less desirable items. If you bid and win the 'lot' you take everything in that lot with you, even if there was something you didn't want. So casual glances are not really enough. You need to pick things up and look underneath for something that may really appeal to you.

Most auctions sell a mixture of everything. There may be an antique section, which usually includes items that are at least 100 years old, or of great interest and value. The 'general' sale items are really only limited to your imagination. Tools, furniture (old and modern), memorabilia, kitchenware, garden items, computers, household items, toys, rugs, cars, office supplies, white goods, the list could go on and on. Often whole businesses that are closing or updating will sell off all their equipment. In the picture above it was a cafe closure.

Each 'lot' will numbered and so as you inspect the goods at the viewing time, you need to take down the number of the 'lots' you are interested in and write a little description to remind you, alternatively you could take a picture with your phone, just make sure the number is visible. Most auction businesses also have a printed list of every lot on offer, or you can often download it from their websites. This can be really helpful, especially if you are after a lot of things.

 If you're like me this whole viewing process can be very exciting, but now is the first time when you really need a cool head, remember check and double check. Oh and just a heads up, wear comfortable casual, even old clothes, to viewing day so you're not worried about getting dirty. Some places are so packed in you'll be brushing up against all sorts of cobwebs and grime. I always like to have some wipes or antiseptic gel with me too, so I can clean my hands after.

 

Many auction businesses now have websites, like the ones I regularly attend here and here . Some have photos of the lots they are selling. Often the photos will be the best quality things and those that will attract the most interest. If there is nothing on their websites that appeals, or that you think might be in your price range, don't despair, they probably put up less than a third of their items. All the things I love are seldom pictured on the websites.

Next week I'll talk about registering as a bidder at auction. I hope you get to go to an auction viewing day soon. Lisa xx