After the holidays, my DH and I wnt to start to attend auctions in order to furnish our basement into a rec room w/pingpong table, furn, etc.

I have no knowledge of protocol of auctions; do they take only cash? How do you bid? anything to be cautious of??????????

Thanks in advance for any insider info

All different auction houses set different numbers for their terms, but they all follow the same convention. They charge a buyer's premium, say 15%, that you pay on top of what you bid. So if you bid 100, you'll pay 115 plus your state sales tax. If you intend to go into business you could become a dealer, and then you don't have to pay your state sales tax. Some auction houses accept credit cards, I've been to many and they've all accepted checks. Check out the preview times so you can go in advance, even the day before, so you can go home and remeasure, or look up values on the internet. Bring packing material and rope to tie things down on your car. Check out auctionzip.com to find auctions in your area. Warning, it's addictive! Have fun!

Most auction houses around here have websites or pages, so you can check our their buyer's premium, and the terms regarding removing the property in case it takes a few days to move large items.

Be sure to examine every item up close before you bid on it. I've learned the hard way that chips and the condition of the finish is hard to ascertain when it's up there on the block.
Also, decide on your final price before the bidding starts because it's so easy to get caught up in the bidding and over pay for something. Another thing I learned the hard way.

me too

quote:

Originally posted by My dog:
Be sure to examine every item up close before you bid on it. I've learned the hard way that chips and the condition of the finish is hard to ascertain when it's up there on the block.
Also, decide on your final price before the bidding starts because it's so easy to get caught up in the bidding and over pay for something. Another thing I learned the hard way.

In my area you pay what you bid not plus a premium and there is no sales tax on top. The SELLER covers all of that and gets less money that what the buyer pays. If I bid $100, it costs me $100. The seller might only get $75 to cover the sales tax and auctioneers commission. So ask locally, every area is different.

In my area the usual premium for buyer is 10%. You have to be very decisive in bidding. . . can't lollygag around!
There is also a certain rhythm to the bidding process which you will latch onto after you have gone to a few. i.e. the auctioneer usually asks for an opening bid of maybe 4X as much as the item will really open at, say he'll ask $100 and it might drop down to $25 or even $10, but then you have to watch out cause it can climb fast! Also always be prepared to be surprised. Something you will think is worth nothing will be the highest priced item of the evening. And you can also get some great buys. If the auctioneer or an audience member destroys that rhythm I am speaking of; interest in an item can evaporate & you could get a great buy! I adore auctions!

I really miss going to auctions - here in the "back-of-beyond" they are few and far between.

I advise going the day before to preview what is being offered. Try not to rush this step and make notes of what you might bid on. Check each item out thoroughly, flaws are not bad if you know about them. You could also do on-line research on the item if necessary.

If you are interested in something in a miscellaneous box make sure you keep your eye on the box before it goes up. There is a possibility that someone might switch items. These boxes can go very cheaply but there could be mostly junk in them other than that one thing you wanted. I haven't had that happen but have heard of it.

For the first couple of auctions you attend if there are no large items you are interested in try to find an item which may go for a lower price just to "practice" on. Decide on the maximum amount you will pay and then jump in and bid. It's very important to know what your maximum is. I like to set the max a little lower than what I am willing to pay, write it down and then I can go up once if I really want to. It's kind of a psychological thing for me, otherwise I feel I've set the max too low if I'm outbid.

Good luck and hope you enjoy the process. I can't wait for the next opportunity to attend one.