Auctioning changed forever when eBay made its way onto the World Wide Web. It not only has transformed the idea of bidding on an item, but has also extended the auctioning scope. The methods have become much more comfortable and organized. Those who couldn’t previously participate in the auction process now can do so on an international scale.
Traditional auctions are still held now and then. However, with time, as the internet has drastically evolved auctions, more and more auctioneers are popping up, which has made auctioning better than ever. The new rules and regulations need to be applied with a change in handling bidding. But for the beginner, it can be a daunting task to understand the ways and methods of the online auction. Below we have provided some tips and suggestions for newbies to better understand bidding methods. To learn about them, continue reading!
Attend the Preview
No matter if you have seen the pictures of items in the auction catalog or not, you should attend the preview. You have to make sure that it is possible to repair damaged pieces (if any) without spending a lot of money on them. If you are planning to bid on them, do not forget to write down box lot number and contents.
Set Your Maximum Spending Amount
You cannot just participate in an online auction, and buy everything you see. It is essential to set your budget beforehand. Set your spending limit for things you are interested in buying only. It is easy to get caught up in the auction or bidding fever. Sometimes you don’t even realize, and end up spending more than you have decided.
Check the Payment Term before the Auction
If you are planning to pay by credit card or check, then certify in advance that the particular auction house accepts those payment methods. Make sure to inquire about extra charges as well as deposits. Some auction houses ask you to put down a refundable deposit when you register yourself to bid. While others may add a consumer’s premium to the hammer price, which will be your winning bid.
Auction is not for Only Old People
If older people come to your mind when you hear the word auction, then think once again. When it comes to buying electronic equipment, if you browse auctions online, you’ll see there are exceedingly more opportunities for the younger generation. Apart from electronics, other markets, such as wine, jewelry, prints, and photographs, are considered as good entry marketplaces for newbies.
Sales are final
When it comes to online auctions, there is no such thing as a buy and try. If you buy something which you found attractive online, but don’t like it in person, then there is no way you can return it. It is a bidding contract. The return policy only applies to extreme cases. Most goods come with rescission rights, which means you can return the item within 48 days of purchase, only if the product you purchased comes damaged or differs from described item online. Other than that there is no chance.
Learn the lingo
The massive world of the auction has its specific language which you should know about before registering to bid. Here are a few terms that are most commonly used:
1. Hammer Price
You might have seen in movies that auctioneers announce the final price at the time his hammer falls. That price is known as the final bid price or hammer price.
2. Buyer’s Premium
The price paid in addition to the hammer price by the successful bidder to the auction house is called buyer’s premium.
A single object or a group of items offered for sale at the auction house as one unit is referred to as a lot.
4. Price Realized
The sum of the buyer’s premium, hammer price, and the final selling price are known as price realized.
Image credit: Online auction via Evlakhov Valeriy/Shutterstock