A Bidder's Guideline to Auctions

This is a compilation of helpful tricks that could improve your bidding power.



How not to overbid.



Overbidding is a common problem among people participating at auctions. In sealed and silent bidding, it is easy to overbid since nobody else knows exactly how high or low the bids are. To ensure that someone wins the bids, he should give it his highest estimated value. On the other hand, the behavior of the crowd and the excitement encouraged by the auctioneer over the properties or items are enough to make people bid excessively. The easiest way to counter this is to do your research.



How to establish your price limit.



Realistic price limits could be made through critically listening to people's advice, from searching the same items online and through researching some information regarding the property or the item being auctioned. With enough information, you could come up with an estimated value of the merchandise. You don't have to be an auction guru to know how much an item is worth though.



It all boils down to research. Knowing something about the item could help you decide on how much you should be willing to bid on it. Doing your homework, getting hold of the actual auction catalogue or inspecting the items during their viewing period could help a lot not only on deciding which item to get but also the price limit you give to each item.



Maximize your time.



Some auctions will give you sufficient time to inspect the item, some provide the catalogues. Whichever method is being used in the auction you are interested in, you should try to maximize your time by coming in the auction site early. By doing so you might get a chance to talk to the auction organizers and inquire about the items. This also gives you the advantage of getting a comfortable seat.



Attend some auctions beforehand.



People who are serious about auctions try to find as much information about them as they can. One good way is to witness live auctions personally. There is so much going on, the hype, the excitement and the wars that normally happen. All these could give you reliable information once you decide to participate yourself. Initially, you should not place any bid- no matter how small the amount. Your intention is to get the feel of the auction process, nothing else.



Observe the crowd.



Bidders have different personalities- each of which work for their buying styles. Work out the differences and similarities among bidders and develop a style of your own. Take note of the style of the more successful ones.

Advantages of Auctions for the Buyers

Why is there such hype regarding auctions? What's so good about them and what do people get from them that they don't normally get from other forms of buying?



Half of Americans, according to the study conducted by the National Auctioneers Association, have seen or attended an auction. This means that auctions are fairly popular among Americans and that the majority of people often prefer to trade through auctions, like in EBay and other live auctions rather than in the actual market. Why? Because first, it is one of the most exciting ways to get the best deals (according to the 83% of all the people surveyed), second, great value for items is often offered to the buyers (this according to more than half of the respondents), and third, buyers are satisfied with the prices they pay at the auctions. Apart from these reasons, there are several others including the following:



Speed of Buying



Most types of auctions are timed so the buyers are pressured to bid their price before the time runs out. This alone gives the excitement for both observers and bidders. Also, buying at an auction offers a fast transaction. Its core rule: give the highest bid and you win the item.



Chance for the buyer to establish his own price



While items at auction usually have reserve prices, auctions still let the bidders decide the highest and lowest value of the items. Thus, the control for pricing is given to the bidders and the real market value of the merchandise is evaluated.



Getting the fair market value



Fair market value comes from the transactions between a willing buyer and a willing seller. In the structure of auction, it is obvious that people participating in it, the sellers and the buyers, get the fair market value of the property or the item they are buying.



Guaranteed sale for both the buyer and the seller



Bidders come to auction with the intent of buying an item and sellers go to auctions to make money off their property. Thus, both parties have the assurance that they will have their intentions satisfied. So it is rare, if not impossible, to have cases where any of the two individuals back out from the transaction since an agreement at auction is legally binding.



It eliminates tedious negotiations



Auctions do not need negotiations between buyers and sellers. If the bidder wins the highest bid, he gets the item whether the seller agrees to the price or not.

A Quick Guide in Hosting a Fundraising Auction

Any successful event needs careful planning. If you are hosting a fundraising auction, you should sit down, talk with your team, and plan for the event.



Gather the Auction Goods.

Items that will be put on sale may not be expensive and of the same kind. They can be things like handicrafts, trips, commemorative items, sports or concert tickets, and gift certificates among others.



Set the stage.

A fundraising auction can be mixed with other event such as Sunday garden cookout, or spaghetti a dinner, or wine and cheese party. Prepare everything from food, chairs, tables, bid numbers, and stage. Your venue should be ideal to the event. If you are holding it indoors, decorations are essential. If you are holding it outdoors, check the weather forecast. Have a backup plan in case something goes wrong. The last thing you would want is for the event to be suspended due to weather or any avoidable disaster. Nonetheless, as long as you have a good venue and people ready to shed some money for a good cause, you'll be fine.



Let it be Known.

Have the invitation set. The people that will attend the auction are the people you will expect to bid the give away money without any hesitations. So when inviting people, it is important to talk to them personally and explain what the auction is all about, its goals and mission. Understanding that the proceeds of the auction will go to a good cause will increase the possibility of getting higher bids. Do not forget to print out invitations and auction brochures or catalogues to be given away to the invited people before the bidding starts.



Get a Good Auctioneer.

One secret to a successful fundraising auction is to have a lively auctioneer. He or she may not be a professional or a fast talker; a good auctioneer has to be someone who can stand on the podium and get the crowd going. Because an enthused crowd may buy anything, even the most unlovable object will be sold for a considerable amount. Get it from your group member who has the talent and skill to connect with anyone.



Hosting an action is one of the most effective ways to raise money for a good cause. If you are tasked to prepare for one, use this as a guide to make sure that the auction is a success.

Auction Guide for First Time Bidders

When you are going to an auction for the first time, there are specific things that you should know.



1. Obtain an auction brochure or catalogue. Do this at least a day before the auction date. This ensures that the goods for sale are what you need.



2. From the auction catalogue, identify what you want. If it's a car, do your research on its current market value online. Once you know its value on the market, you can set your budget.



3. At the day of the sale, phone in the auction house and confirm if the auction is going as scheduled as certain auctions can be subjected to last minute cancellations or rescheduling. Phoning in to confirm if the property or an item you are interested in is still on sale is something you should do before going to the auction house as well.



4. Once you arrive at the auction house, register to obtain a bidding number. You will be asked for your name, address, and contact number and will be asked to pay a deposit or pay a certain amount for the registration fee.



5. Come early. This allows you to inspect the auction goods properly before the bidding starts. An auction brochure may be helpful in providing information of the goods for sale; but physically inspecting the items before the sale allows you to determine if the goods are really worth any amount of your money. Do an ocular inspection, days before the scheduled auction if it is a piece of property.



6. Each item is designated with a lot number for easy reference. Take note of these numbers when you are inspecting the goods. The same number will be called during the actual auction.



7. Before the auction starts, the auctioneer will explain the rules. Listen attentively and keep your ears open for additional information on the goods up for bid.



8. Once the auctioneer calls for the starting bid, the bidding process begins. Each item may be sold within seconds. Once the lot number you are interested in is called, be alert and stay focus. Do not bid an amount you cannot afford. Stay within your set budget. Most first time bidders get carried away and bid higher than what they have originally planned.



9. If you have won an item, you will be asked to pay in partial or in full and to give your personal details the day of the auction.



Once it is all settled, you will be asked to sign an auction memorandum. The deal is done!

Auction: How Does It Work

Auction is not like buying something from the department store- you get it, grab the item, go to the cashier and pay for it then get out of the store with the item at hand. In auctions, there is fierce competition especially during bidding wars. There are only few items being auctioned which means that only a few people can win the bid so in most cases, even if the bidder comes well-prepared for the battle, he could still get out of the auction site with nothing in hand.



So how does auction work?



Registration



It is a must for auctioneers to have their potential bidders register before they participate in the bidding. The bidder has to give the correct information as this may be use as reference for future transactions. Typical information required are personal information such as name, address and bidding history if applicable. Also during registration, the participant will be asked to pay a returnable deposit. Some auctioneers require large deposits, thus anyone who wants to participate in an auction should be well-equipped with knowledge on the particular type of auction.



Afterwards, the bidder will be given a bidding number which is often used to substitute for the name of the bidder as the bidding happens.



Bidding proper



Each bidder should be given a catalogue which is a list that contains details regarding the items being auctioned. (NOTE: Under normal circumstances, viewing time is allowed which could last anywhere from a few hours to several days. This allows the potential buyer to view the items he wants to bid on before the auction begins. For some auctions that provide catalogues though, viewing is not allowed. To be sure, it is best to confirm details regarding viewing time and catalogues before the date of the auction.)



After this, the auctioneer will announce the item being auctioned and some important details regarding the item which is usually tied with the information given on the catalog. The auctioneer will then suggest a starting bid- this is not necessarily the lowest available price for the item. In most cases, the first bid usually begins at a price below the starting bid. On the other hand, if the item has a set reserve price, the bidding will usually start above this price until it reaches the reserve price. For guiding the bidders, the catalogues usually have guide prices.



After the announcement of the starting price, the bidders are free to outbid each other until the highest bid is reached. Bidders typically get the attention of the auctioneer by raising their hands or their bidding numbers. But clear gestures can also be used. The auctioneer will normally return to the most active bidders for confirmation of bids. If the bidder wishes to withdraw from the bidding, he can shake his head. The one with the highest bid will win the item.



After the bidding, the final bidder will pay a deposit according to the terms and conditions of the purchase. Payment methods are normally stated in the auction catalogue.

Auctions: How to Bid Safely

Every movement on the bidding floor- even the slightest nod- could mean a bid to the auctioneer. Some people accidentally win items being auctioned because of some gestures that were natural for them, say waving at a friend during the auction. This could happen to anyone and it could happen to you.



Here are some bidding safety tips:



EYE CONTACT



You may be sitting far from the auctioneer but whenever you have the chance, catch his attention. Maintain eye contact afterwards. Keep your eye contact whenever possible, this will establish your identity to him. Thus, when it is time for you to bid on an item you intend to buy, you will have no problem in communicating this to the auctioneer.



ESTABLISHING CONNECTION



Once you start bidding see to it that you don't lose the connection with the auctioneer. You could start by making a determined hand gesture or unabashed bidding using your card. From this point on, he will come back to you whenever your bid is upped. A simple nod or a slight gesture will tell him that you willing to raise the price a bit higher.



DROPPING OUT



Sometimes people feel pressured if the auctioneer keeps on coming back to them. If you want to quit from the bidding, a polite shaking of the head will signal the auctioneer that you are backing out.



ENTERING THE BID



You should always know when to enter the bidding. Some people come in too early, some are too late. Both positions have low chances of getting the item or property being auctioned at a price they want. If you want to set the price, try to enter midway into the bidding. This way you are giving yourself a fair chance of getting out of the bid if you want to quit or pursue your bid if you are serious with the item. If you are doubtful on whether or not you should buy the item, never enter the bid when you feel that there are fewer people participating on it.



If, however, you intentionally entered the bidding game late, there is a chance that you could be overlooked by the auctioneer. If this happens, try to get his attention by politely saying a word to signal your interest.



QUICK DECISIONS



Bidding often happen fast and sometimes it leaves you no room for analyzing whether you should place the next highest bid. In this case, try to think as fast as you can because the bidding will never stop for you.

Auctions: Where to Find the Best Deal?

If you are looking for your next car, real estate, clothes, jewelry, arts and antiques, household furniture, personal gadgets or anything you want to buy at bargain prices, you should be heading to any of the following places



Police Auctions.



Police confiscate items and impounds vehicles. But if the items are left unclaimed for a definite period of time or there is no possible way to trace the owners and return the items, they become auction goods. Police also seize properties and items associated to crimes people commit. The police seized properties will then go to an auction. Police auctions are often held at local police agencies, federal law enforcement agencies, police departments, and county sheriff departments at specific time and date.



Government-Seized Auctions. Due to foreclosure and seizure laws, the government accumulates properties from private owners who were unable to pay their mortgages or loans. These will then become government property and will be put into auctions. The Customs and Border Protection, US Department of Homeland Security, U.S. Postal Service, U.S. Marshals Service, U.S. Bankruptcy Court, Internal Revenue Service, and State Tax Department are some of the government agencies that hold government-seized property auctions.



Bank and Loan Companies. Bank and loan companies often repossess properties from owners who are unable to make loan payments. These repossessed properties range from real estate, vehicles to home furniture, become bank or loan company properties. Since the cost of storage is high, bank and loan companies want to convert the repossessed properties into liquid assets right away. The best way to do it is through an auction. Bank and loan companies often announce auction schedules online, in office bulletins and in newspapers.



New and Used Car Dealers. In order to make a sale, new car dealers allow their costumers to trade-in their old cars for new ones. The old vehicle that was traded-in will then go to an auction. Used car dealers also employ the same system as other auction houses to generate sales. While there are some used vehicles up for bidding, there are also very well-maintained vehicles you can buy at a price that is usually lower than their current market value.



Auction Companies. Auction companies sell a wide array of auction goods. Check newspaper ads, auction brochures, and the yellow pages. They often hold valuable information on when and where the next auction will be.

Auto Auction: What You REALLY Need to Know!

If you are planning to buy a car at an auction, you are likely to buy a car 'in its present condition'. This means that if in case you have discovered later on that the car you have bought has certain defects, no one will be held accountable for the expenses you made for the repairs (unless the contract gives a special condition or if the manufacturer warranty is still valid). Thus, it is your responsibility to know exactly what you are buying so that you will not regret your purchase if you encounter any problem.



First things first: do not expect perfection. No matter how much the final price is, expect the possibility that the car needs some repairs or some parts need to be replaced. To avoid frustration, include in your budget the amount that may cost you on possible repairs. Inspect the car's condition before bidding for it. It is wise to come early before the auction starts so that you have enough time to make your car selections. Make a shortlist and inspect them one by one.



Check the papers of the car you want to buy including the mileage, repair record, VIN, and safety ranking. Test drive if the auction house permits it.



Beforehand, do some research on the current market value of the car you are interested in. This will give you a clear idea on how much you will have to set aside on each car you see at the auction site.



The highest bid price you should set for each car of your choice must include the possible repair costs you may have. For example, the current market value of the car is $2,000 and the possible repair cost is at about $400, bid at the maximum of $2,000 minus the repair cost, minus the extra fee you have to pay at the end of the bidding.



Bring an expert if you can so that you can get an impartial assessment on the condition of the car you are interested in.



Things happen very quickly in a car auction so be attentive. A car can be sold within 30 seconds. And before you know it, there are no more available cars for you to bid on. Again, stay within your budget. You should not pay more than the actual market value of the car.



Remember, you can get great deals at a car auction but make sure that you know exactly what to expect in order to increase your chances of getting the best for your money.

Auto Auction: Winning the Right Car at the Right Price!

Bidding with a reputable auction company is not a guarantee that you won't get ripped off on the car you want to bid on. So before engaging into a bidding war, make sure that you know what you are fighting for.



First, get auction listings. The listings may be a brochure or a catalogue. Getting hold of one allows you important information about the history of the cars that will be put on auction. Look for the vehicle identification number (VIN) and do your research online. Check their history report. The VIN will allow you to discover what happened to the vehicles before they were put up for auction. Check the current market value of the cars of your choice so that you will have an idea on how much money you should place for each car. (Select 3 or more cars you want to bid on as you are not assured that you will win your first choice.)



Pre-selecting the cars and researching their current market prices isn't enough. You need to go to the site before the auction begins and inspect the vehicles personally. This way, you will be able to know the general condition of the vehicles.



Vehicles at auto auctions are sold "as is" and most auto auctions do not allow bidders to test drive the vehicle so the only way to know if it's really worth your money is to do a thorough inspection off the vehicles.



Take note of the information posted on the windshield of the vehicles (seller's name, mileage, lot number, year and model, and lane assignment). This will be your guide on the auction floor.



Once the bidding starts you must stay focus. The auction process happens very fast and one vehicle may be sold within a few seconds. When their number is called on the floor, do not hesitate to bid. Take note, there may be others that are also interested in the same vehicle. If this happens, the price may go well above your expectations. Keep within your budget. Stop bidding if the price is above your set budget.



If you didn't win one of your chosen cars, move on and be ready for the next one to be called. Keep trying without breaking your budget. In the end, if you have done enough, you will be able to drive home the right car, at the right price!

Benefits of Auctions for Sellers

Many sellers, property owners and brokers often prefer to sell items through auctions due to the following reasons:



An item is considered sold once auctioned



Chances are the items will be bought once listed at an auction. The fact that it is being auctioned means that it has some good market value and this value could increase depending on the bidders. The buyers will always find good reasons to buy the item presented to them even if they may have no intention of doing so.



All buyers are willing to bid



There is no other way for potential buyers to get the item they want but to bid at an auction. Thus the seller has the assurance that his items and properties will be sold at the end of the day.



Quick disposal of items



Probably one of the fastest ways to sell things, auction gives the sellers the advantage of fast disposal of the merchandise. Once an item is presented to the crowd, someone will always be willing to get hold of it. This then will cut the expenses on maintenance, taxes, and even inventory costs.



Assurance of true market value



The market value is the price that is both competitive and acceptable to the buyers. If the price is bid, this means that the true market value of the item is being given therefore; there is no way for the auctioneer or the seller not to get the price that is fair for the item.



Accelerated sale



Unlike when a car is sold individually or a foreclosed home is negotiated between the owner of the property, the broker and the willing buyer, items being auctioned only need a moderator to announce the item and the buyers will bid on it. This makes the sale both efficient and fast. The process eliminates the negotiation or the waiting process.



Accurate information



Unlike with the conventional way of selling on the open market, auctions give the seller the assurance that his property will be sold at a certain time.



Buyers are qualified



Registration is a typical part of any auction. The potential buyer has to first register an account that would enable him to bid on the auction and would give the seller the assurance that the potential buyers have the capacity to pay.

Bidding Frenzy: The Problem with Auctions

Why do some bidders stick with their bids even if they are starting to go beyond the rationality of the sale? Why are there so many people who jump into the hype of auctions without really knowing why they do it? And why are there so many bidders who tend to get themselves caught in bidding wars while knowing that they will have to pay more than they can afford?



Bidding frenzy is a common problem in joining auctions which also makes some people reluctant in buying from such. Why is this happening and why are there some people who just can't stop even when the rationality of auctioning is crossed?



Here are three reasons behind this:



One, it may be due to the combination of arousal, excitement, competition, an overwhelming desire to win and extreme reluctance to back out.



Bidding frenzy is comparable with addiction to gambling in terms of the adrenaline rush and the continued excitement running in the psyche of the people involved. The more intense the bidding war becomes, the more interested the bidders become.



The rush of emotions can't be discounted when trying to understand why people participate in bidding wars. At this point, it really no longer matters whether logic is working or not, what is more important is that the person is satisfied emotionally. Also, people loose their best judgment when their minds are clouded with emotions.



Two, it may not be purely on winning the item but on testing the personal threshold of the bidder and the competitor.



People who aren't so interested in the item but get caught in the bidding war no longer feel the need to get the merchandise but the need to make the other person pay dearly when the ending price is several times over than the original price.



Three, it may be due to the lack of experience with auctions.



Bidding wars are more commonly observed among people who are just beginning and are not backed by sufficient information on how exactly they work. It must be noted that some bidding wars are intentionally encouraged by the auction organizers themselves. This is working on the principle that the more interest the public has on the merchandise, the higher the value it receives and the more interested buyers bid on it. This does not only increase the hype over the item but also adds to its market value.

Bidding Tips: Learn to Do Well at the Auction

An auction can be a great place for bargains and a venue where you can get items you are looking for. That is, if you know how to bid right. Here are some pointers you can apply when you are going to an auction.



Inspect the items personally. Deciding whether to bid for an item or not should not be done while looking at the auction brochure. Because no matter how glossy and attractive the pictures are, there is no other way to get the full details on the things or property you want to buy than looking at it in person. So, before you even think about buying an item at an auction, make sure that you have done a physical inspection. Come to the auction site before the bidding starts. This will give you enough time to decide if the picture you see is really something worth buying.



Bring a friend. Auctions can stir a lot of emotions you don't need. Bringing someone who remains neutral can give you a tap if you are going out of line.



Set a budget and bring enough cash. Giving yourself a limit on how much you are willing to spend for a particular item should be one of your top priorities. When doing this, consider the total cost including other fees such as repairs, solicitor's fee, taxes, redecorating or renovation, and mortgage.



Don't panic. The auction process happens really fast. In a matter of seconds, an item can be sold and in a matter of minutes, the auction is over and you are on your way home. But this doesn't mean that you go all out and bid on whatever item that is presented in front of you. Stay calm. If you don't get the item you are after, do not get disappointed. It is better to go back another day and try your luck than to go home feeling sorry about yourself because you have won an item you don't really need.



Be aware of the auction lingo. The sale is about to close if you here something like, "going once, going twice" And when you hear the hammer raps, the item is sold. Do not wait for this moment before you decide that you want to bid more for the item.

Boost Your Sales and Make Money at Auctions

Whether you are planning to make a living on selling items at an auction or just want to maximize your profit from an item you have entered, take note of the following tips on how to boost your sales and make money at auctions.



1. List item(s) on auction houses that sell similar products as yours in similar price ranges. There are auction companies that accept and sell anything. This is okay but your first choice should always be the ones that are selling similar products as yours. Why? Bidders and shoppers look for a particular item to buy and they want to buy it where they have several choices. The more choices the auction offers, the more people they attract. The same reason people go to a department store rather than a small outlet. Placing your item among other similar items at similar price range increases its chance of selling.



2. Make your item stand out. Buying the rights to become a feature auction can cost you money. Unless you are selling something that can yield to a big sale, refrain from paying for extra exposure. What is meant a good advertisement is by making sure that the item you are selling attracts positive impression and interest. If it is property you are selling, do some improvements. Refaced kitchen doors, newly painted walls, and a clean front porch may not boost the cost of your house significantly but they can be the factors that will help potential buyers decide to buy your house. This also applies to any products you want to sell at an auction.



3. Answer to the buyers' wants and needs. Bidders want to buy something worth their money. So the item(s) you sell should be well in the range of the buyer's budget. If you follow #1, you're doing it right. Bidders need to buy items that they can take home as simple and as quickly as possible. Your shipping and handling terms must coincide with their requirements.



4. Be realistic in setting your 'reserve' price. Most bidders do their homework and search for the current market value of the items they see on auction listings. Try not to take this for granted as you will likely not get any sale if plan to rip off your buyers by setting unreasonable prices. Take note, most people go to auctions because they want to save. Don't attempt to sell your item(s) higher than what they are worth.

Buying Something? Tips on Finding the Right Auction House

There are so many police auctions, government auctions, and privately hosted auctions happening across the country. And choosing one may be a bit confusing. Since the type of auction house will make the difference between getting the best deal and going home with nothing, finding the right one is as important as knowing how to bid correctly.



1. Know what you want.



Not all auction houses sell everything you need. Some only sell properties while others focus on certain items such as cars, antiques, artworks, memorabilia or jewelry. Police and government auctions sell various things including real estate properties, vehicles, boats, motorcycles, home furnishings, jewelry, and consumer electronics among others. When you know what you want to buy, you'll know where to go.



2. Do some research.



Finding a public auction is not rocket science. You don't need a degree to find one. Search online and "off-line". Different auction companies and auction houses have websites and newspaper ads where you can get information on when and where the next auction will be. Government and police agencies announce their auction schedules online and on their bulletin boards.



Auctions are also announced in local newspapers especially if the auctioneer is holding it nearby. Do not forget your yellow pages. Auction companies have listings in your dusty old phone book.



Get auction brochures. They contain listings of the items that are about to go on sale which will give you an initial idea on whether the items you are looking for will be sold at the auction or not. In addition, short descriptions are also included in the brochures so that potential buyers get important information on the auction goods.



3. Ask a friend.



Good things are not always a hard find. Sometimes, all you need to do is to ask your neighbor, your officemate or your relative if they know any auction houses.



4. Choose within your proximity.



The main reason why you are choosing auctions over other ways of purchasing goods is because you want to save money. So keep your expenses monitored. The amount to spend on the item is not limited to the final sale. It includes the cost of gasoline you spend on the commute, the food you spend for the day, and the time you waste to participate in the auction, not to mention the depreciation of your car on your way to the auction house and back. In order to keep your expenses low, choose an auction house nearest you.

Car Auctions: Advantageous or Not?

Good and bad deals in car auctions have their equal share. Some first time buyers who've had a good deal may call it luck, but others who are more experienced at car auctions are just responding to some good opportunities. Here are the pros and cons of buying at an auto auction:



PROS

People with limited budgets and who want to buy a car find that there are a lot of choices in car auctions as compared with conventional car distributors and dealers.



For regular cars sold at auctions, buyers could secure reliable if not the best cars at very cheap prices. In most cases, organizers make it a point that the cars they sell are checked well for any damages or malfunctions and are in good condition.



At car auctions, even the best and most popular models are being sold with an added perk- they come at lower prices.



For car collectors, there are available auctions where vintage cars are featured. This may be a good opportunity to obtain some of the best cars without having to go through negotiations with owners who are unwilling to sell their vintage cars. Also, car auctions present great opportunities for buying really old cars without having to pay premium prices for the "vintage tag".



CONS

Cars at auctions are sold at relatively lower prices because the items are typically second-hand autos repossessed by the mortgagors or the federal government. There is an added danger to this- there are cars labeled as second-hand but are not at all second hand, some of them could be third hand or more.



A lot of cars at auction are not in mint condition, many of them even have mechanical flaws. Such flaws may not be apparent during the auction due to refurbishments, repaints and fixes that were made on the car to make the item look their best. These flaws will start appearing once the buyer uses the car.



Some cars that are being auctioned are "hot" cars, meaning these may be smuggled or stolen. Chances are you'll have problems regarding the car's ownership.



Unlike autos being sold at regular distributors and dealers, those sold at auction usually do not have insurance coverage or warranties.



Different car buyers have different opinions on whether it is good or bad to buy a car at an auction. Thus the buyer has to rely on his best judgment backed by a considerable amount of research and use of gut feelings.

Charity Auction: An Effective Fundraising Tool

Charity auction are widely used as a tool to effectively raise funds for a cause. A charity auction works the same as other types of auctions. The main difference is that this auction is a non-profit event and the proceeds of all the items that are sold goes to a common cause.



There are two types of auctions used on a fundraising event: Silent auction and regular auction.



Silent auctions are conducted by setting up a table or a display where all the auction goods will be shown for people to bid on. A minimum bid may or may not be set. A piece of paper is located near the items where participants can write the amount of their bid together with their name. At the end of the auction, the bid is calculated and the person who casts the highest bid wins the item. This is often a better choice for fundraising organizers as it does not detract people from the entertainment.



Bids can be kept privately throughout the auction or can be displayed through a bidding sheet. In a 'private silent auction', all the previous bids are not revealed in public. The good thing about 'private silent auction' is that, it keeps the bidders clueless on other bids. In theory, if a person does not know how much the bids of others are, the tendency is to give the highest amount he or she is willing spend on a particular item. And since it is for a cause, money will definitely come easy.



On a 'displayed-bid silent auction' a sheet of paper reveals all the previous bids made by other people. This allows bidders to watch a particular item or items they like and place higher bids, to write down the amount higher than the previous bid, or to write down the highest bid before the auction closes. This method is currently being used by almost all internet auction sites including eBay.



A regular auction on the other hand requires an auctioneer who will call the price from people who raise their hands or numbers to bid. A regular auction takes advantage of impulse buying as bidders only have a few seconds to outbid each other. If the auctioneer is good and the competition is present, items can be sold higher that their original value.



When executed properly, both silent auction and regular auction effectively yield a good result.

Common Auction Terminologies: A Must Learn

Absentee bid is a bid made by a person not attending the auction. The bid, or often called order bid is often placed online or done through a telephone call. The winning absentee bidder equals the second highest bidder plus one bid increment.



Absolute auction is also known as straight auction. This is a type of auction where there is no amount or limiting conditions.



`As is where is' or 'in its present condition' or simply 'as is' is a term used to describe an item without return privileges.



Auction block is a stage or a podium where the auctioneer stands and calls for the bids. When an item is placed on an auction block, it means the item will go on sale.



Auctioneer is the person who calls for bid during the auction process.



Bid is an offer of a price the buyer has called.



Bid History is a list of all the bids made, usually, in chronological order. This is usually used at silent auctions.



Buy-out is a predetermined price set by the seller. Once the buy-out price is reached, the auctioneer has the option to stop the bidding and award the item to last bidder.



Deadbeats is a term given to a high bidder who fails to pay for the item he or she has won.



Dutch auction is a type of auction where the auctioneer calls the highest asking price and incrementally goes down until one bidder is willing to buy the item. The winning bidder pays for the last price called by the auctioneer.



English auction is a type of auction that starts with a minimum asking price and goes up incrementally. The item is won if the buyout price has been reached or if there is no other person willing to place a higher bid.



Featured auction are prominently placed on brochures, catalogues, category pages, or home pages of the auction service. Sellers usually pay for the placement.



Jump bid is a bid that is higher than the incremental bid.



Lot can be a single auction listing or a number given to an auction good for easier reference.



Market value is the highest price of the item when it is sold on the open market.



Maximum Bid is the highest amount a bidder is willing to pay for the item.



Opening Bid is the minimum bid.



Reserve Price is the lowest amount the seller is willing to accept for the item. Items with reserve prices are announced before the auction begins but the amount is not revealed.



Snipping is outbidding others during the last moment of the auction.

Do Estate Auctions Interest You?

Estate auctions seem to be the top-rated places for scouring items that may fit your house. If you are out to seek an odd chair, an old designer side table that could be turned into a center piece for your house or an antique cabinet that could be refurbished for your stylish home, estate auctions may offer you better deals than antique furniture shops.



You never know what you are going to find for sale during an estate auction and what adds to the thrill of joining such. If you are someone who makes the most out of anything you see, you may find that an estate auction is more satisfying than you first expected.



But what will assure you of a great deal with an estate auction?



Going to the auction site an hour or half hour earlier than the actual auction schedule. This will give you time to inspect the items that you might want to bid on. Also, using the inspection period will let you see close the items that you want to buy. You can also evaluate the estimated price for each item, thus helping you decide on the ceiling price you'll give it.



While inspecting, look for the labels or manufacturers of the items you want. These will give you an approximation of its value.



Bid later in the auction. The crowd is usually largest at the beginning of the auctions. If you do not want to compete with other bidders, it is best to wait for the last parts of the auction when the crowd is thinning out. This works most effectively among people who are more interested in non-furniture items.



Do not join the bidding wars. If you want to buy a certain piece of furniture so badly, chances are there is someone in the crowd who wants it too. You'll know this for certain if someone in the crowd tries to outbid you. In the end, there will only be you and that bidder (and probably someone else) who'll be left bidding on an item. If this is the case, you can try to outbid him as much as you want but once the price crosses over the actual value of the item, pull the stops and let that person win it. An item is only as good as its original value.

Fundraising Auction Do's and Don'ts

Organizing a fundraising auction is a big task, nonetheless it is possible. But before start, take these do's and don'ts as your guide to a better and more successful auction.



Do's



Do the planning carefully. Set your goal. Gather your team. Draw your plan. Delegate tasks. Prepare everything you need. Execute perfectly.



Get a corporate sponsor. Not only will it reduce your expenses, getting a corporate sponsor will also help you attract more people through corporate contacts or employees. Companies are less likely to refuse since it gives them exposure for a small amount. The thing is: You need them and they need you. Everyone benefits.



Define what auction you will use. You have 3 choices. You can use a regular auction, silent auction, or both. Each has its own pros and cons. It is up to you to decide what approach to take to make the most out of these types of auctions.



Do hire a professional charity auctioneer. Take note: "professional charity auctioneer". Regular auctioneers have a great skill of their own but a charity auctioneer knows how to execute a non-profit event very well.



Integrate the auction into a charity event. Often, a fundraising activity including charity auction is combined with an event. This helps draw invites and keep the guests entertained.



Don'ts



Don't set limitations on the type of auction goods to sell. If you want to gather enough funds for a cause, be ready to sell everything.



Don't assume that your guests know what to do. Not everyone has been to an auction or experienced bidding for an item at an auction. So keep each of your guests informed as to what they should expect during the actual event. Doing this allows you to connect with them personally. In return, your guests are well-informed on the cause of the event which can yield to better bidding results.



Don't spend too much on preparation. This is a fundraising event and your goal is to raise money. The last thing you want is to host an event that requires big money. Keep your budget to the minimum. Any amount you save is added to the money you earn.



Don't stress yourself out. While there are lots of things going on when preparing the fundraising event and during the auction itself, you don't have to stress yourself over the details too much. Trust your teammates. They will do the job as they're told.

Going to an Auction in 5 Easy Steps

The process of buying at an auction can be confusing to first timers. If you get started on the wrong foot, the whole experience can be discouraging. So in order to make sure that you do it correctly on your first try, here are the steps you should follow



1. Go to an auction preview



If you want to increase your chances of success, this is the most important step you should focus on. Auction previews are an opportunity to know the different auction goods on sale and the only time to inspect personally the items you are interested in bidding on. Turn it on, plug it in, try it out and examine all the features of the item when possible.



Auction previews are held days before the actual auction day. It is your chance to take notes, bring a camera, and screen the items through your personal quality check list. At the day of the auction, go through the items one last time and inspect that they are still in the same condition.



2. Do your Research



Once you have seen the items on sale, go home and do your research. Go online and check the market value of the items. Consider the repair costs if necessary.



3. Set your budget



Once you have done your research on the items you are interested in bidding on, determine the highest amount you are willing to pay for each item. Take note, knowing the amount of your highest bid should be based on the current market value of each item, the possible repair costs, and the additional charges the auction company will impose on the sale.



4. Prepare Your money



Winning at an auction is legally binding so you cannot simply pull yourself out after you win an item. Prepare your money that you have set to cover your bids and the extra fee.



5. Bid



When the auction opens and the auctioneer calls for the bids be ready. A second of hesitation may cost you to lose the item you are eyeing. Stay within your set budget. The auction process is fast-paced; things can get ugly, and emotions can run high. Do not let your emotions rule your decision-making. Bidding on impulse may win you an item but make sure that it won't overrule the budget you have set and the research you have done.

Government-Seized Property Auctions: Buy Your Dream Home Here!

Bidding at government-seized property auctions is perhaps the easiest and most effective way to own a dream home. At these auctions, you call the shots; you can choose from any listed properties; you decide how much you are willing to pay for the home; you have the option not to bid if you think you can't afford the property; and most of all, you can buy your dream home at a price lower that its actual value.



Where do these properties come from?



Everyday, many privately-owned properties all across the country are subjected to foreclosure laws and repossession orders; other properties are seized because they were illegally acquired. All of these will become government properties. And since the government doesn't have any use for them, these real-estate properties are brought to auctions to be sold and become government assets.



Buying your dream home at rock bottom prices



When the real estate market is in distress, real estate property prices go down. And when the country's economy is in recession, citizens don't have the financial strength to keep up with the prices. One result of this slow down is homeowners missing their mortgage payments. Both are happening right now! And there's no better time to by property than today.



If you put time in it, you will be able to buy a home 90% below its market value.



Do your research and acquire a property listing. If you have one, go through them one by one and study if any particular property fits your requirements. Once you have chosen a property, it is very important to go visit it before the auction. Houses offered at government auctions are not in perfect condition so it is a must that you check its general appearance before finalizing your decision.



Know your financial strength. Decide whether you will pay cash or use financing. If you choose the latter, get pre-approval first from a bank or loan company.



Government-seized properties may have or may have not been appraised before they are put on sale at an auction. Take note of this as the appraised properties are significantly more expensive.



Generally, properties at government-seized auctions are cheaper than the value on the open market but competition can drive the prices up. The key is, be wise when bidding. Bid only the amount you can afford. If you do all these, your dream home is going once going twice and sold to you!

Guidelines on Buying at an Auction

Here is a guideline to prospective buyers from an auction:



Do your homework: Nothing is more important than knowing what type of battle you are going into. Before traveling towards the auction site, you should first obtain a considerable amount of information about the items being auctioned, the form of bidding and other necessary details. Also, know the requirements of the auction.



Bring cash: Most auctions require the potential buyer to deposit a registration fee which may or may not be withdrawn afterwards. This acts as an assurance to the auctioneer that the person is a serious bidder. Also, know the forms of payment that the auctioneer requires. You might be required to bring cash, to use your credit card or to pay through a bank. TIP: Refrain from joining bids where the auctioneer asks the winning bidders to wire their payment. Once you wire the money, it's lost.



Just be prepared: There are conditions when the auctioneers have to cancel the auction. To get around this possibility, call the auctioneer before going to the auction site. Some auctions are cancelled without notice or with very little notice.



Use the viewing time: Most auctions allow viewing time for the items or properties so that the bidders will get an idea of the items being auctioned. During this time, inspect the item you want to bid on. Check for any indications that will give you hints on whether an item is a good sale or not. Inspect thoroughly because merchandise at auctions come with no guarantees. Foreclosed homes that are being auctioned, for example, are sold as-is. Thus any damages to property, whether it's real estate, a car or just a collector's item will not be recognized through complaints. However, there are some auctions that allow the winning bidder to return the item if proven faulty. But just to eliminate the trouble, try to check the item first before deciding to bid on it.



Set a price limit: Some people get so caught in the bidding wars that they bid beyond their capacity in the process. Don't let your emotions take you to prices that you cannot afford. Set a ceiling for the purchase price and stick with it. This way you won't be a victim of negative spur of the moment decisions because sometimes, even if you can afford the price, it's not wise to buy something priced way beyond its original value.

Home Foreclosure Auction: How to Prepare

Home foreclosure is a very devastating experience. However, for some people who need to buy a home at a much lower rate, home foreclosure auctions could be one of the most favorable choices. Many buyers of foreclosed houses feel guilty. What they don't understand is that it was not their fault that the house is being foreclosed nor was it their fault to want a house for themselves. If you are one of them just remember one thing. If you don't buy that foreclosed home, somebody else will. If someone has to buy it, it might as well be you.



But there are some preparations needed to ensure that you get the best deal.



One, realize that foreclosed homes don't come out clean. The fact that the home was foreclosed only means that the owners failed to meet the regular payments and liens, if there are any. So be sure that the home being auctioned has clean papers. Here's the catch though- most foreclosed homes are auctioned as-is. So any mess or damages done by the previous owners will be your problem once you own the house. So as much as possible research on the particular house that interests you.



Two, don't hop into the auction right away. If you are serious about getting a house through auction try to practice first. Go to an auction but don't participate. This way you'll get the feel of being in the auction pit and it will help you when you actually participate in the bidding.



Three, never get carried away by the bidding wars. Some foreclosed homes increase in value because of exaggerated bidding wars. If there are several people who really want the house and the price has exceeded your budget then do yourself a favor, just back out form the bidding. Emotions can be very dangerous especially during auctions.



Last, do not expect too much. You may or you may not get the house being auctioned. Despite the preparations and research you have done prior to the auction, there might be someone else who may outbid you. If you want to give your efforts some justice and you resort to outbidding everyone else beyond your own capacity, you might find that the auctioned house you won might be a nightmare not a reward. Remember to pull your stops when necessary. If you don't get this house, then think about getting another in the future.

How to Avert Auction Mistakes

Bidding at an auction can be an enjoyable experience but if you focus solely on fun and let loose of your limitations, you may be on your way to auction pitfalls. Here are the things you need to remember to avert auction mistakes.



Inspect the items you are interested in.



While auction brochures can supply you with important information about the auction goods you want to buy, there is no better way to know the condition of the items than to inspect them in person. Remember, bidding at an auction is a form of buying goods. So no matter how inexpensive the item you have won, you still have to pull money out from your pocket.



Know what you need and not what you want.



There are several good items that can be put into a single auction; however, this should not be a reason for you to throw away your money and bid on everything. Set your priorities straight. You are going to an auction to get something you need and not just for the heck of bringing home just anything.



Set a budget.



The bidding process happens very quickly and if you are not attentive, the item you have planned to bid on will be taken by others. But this is not an excuse to engage into a bidding war against other bidders. Set the highest amount of cash you are willing to pay for each item you have chosen. Keep your budget in mind when bidding.



If you are bidding on memorabilia, antiques, artwork, or vintage items which value may appreciate in the future, set your budget so it is worth the investment.



Any items you have won during the auction must be paid for that day. Often, credit cards are accepted as a form of payment but most auction companies require cash.



Do not forget to register.



Before you can participate at an auction, you need to register. You may be asked to give your name, address, phone number, and may be required to give a deposit. You will be then given a number you will use during the auction.



Do not get carried away



Emotions can run high during the bidding process. Stay focused! If the price of a particular item goes over your budget, let it go. Do not get frustrated and bid on other items you don't really want just to comfort yourself or just to have something to bring home. Again, you are putting money on the line so spend wisely.

How to Buy a Home at an Auction?

Go to an auction site, bid for a property you like, give the down payment, and move in to your new home. If buying a home from an auction is as simple as this, then we don't have anything to talk about. However, bidding for a property is not a simple matter. You need to consider all the factors that are involved in the whole process. Sure, you need to do every step above but the unmentioned steps are often the most difficult part of the process. Here are those steps.



Know what you can afford.



It is nice to look at houses listed in the auction brochures. But no matter how deep you fall in love with any of the houses on the list, everything simply boils down to what you can afford. So, before anything else, know your financial capability. Buying a home at an auction is a big step in realizing your dream to become a homeowner but that does not end there. You are responsible in keeping the payment for your mortgage up to date. Identify your present and future financial standing to decide which house you can afford.



Go to the listings.



Now that you have a price range in mind, it is time to go through the brochures and look for the house that fits your budget. The key here is sticking to what you can afford. It is useless to buy the house you really want and lose it in a couple of months because of foreclosure. It is important to have enough savings before you plan to buy a house. This way, you increase your chances of buying better and more expensive property.



Do your research.



A house is sold at an auction because of two reasons: (1) the owner of the house is unable to pay for the mortgage and the house is taken back by the lender through foreclosure and (2) if the owner of the house cannot sell the property and has to seek the help from an auction company. Know the background of the property you are interested in. Schedule a visit so that you know what you are bidding for. Remember these 3 words: Location, location, location. Not being able to afford a first class neighborhood doesn't mean that you have to settle for a house in a crime-ridden area. Bid for a house that is accessible to your daily needs.



Once you have done these 3, it is time to go to the auction. Make sure that you have money on hand as auction houses require the winner to pay at least 10% of the total price as a down payment.

How to Buy a House at an Auction

There will always be a home seller or a home buyer. If you are the buyer, purchasing a home from an auction might be your best shot for a great deal. However, you should make some preparations to maximize your chance of getting the property you want at a discounted price.



RESEARCH: Knowing what you are buying will equip you with the best judgments on how to deal with the owners, how much your highest bid will be and your expectations regarding the house itself. Try to get some information about the house. It is much easier to get information on a foreclosed house that is being sold by the owners. If it is being auctioned by the bank or the government, public information may be limited. If you are just looking for a house to buy at an auction, check the title company for information or the county recorder. Also, houses being auctioned are advertised through auction websites. Auction catalogues could also be a good source of information on the reserve price, the starting bid and the maximum price of the house being auctioned.



COMPARE: If a house is foreclosed in a certain area, chances are there are other houses being sold in the same area. The prices of such other properties may be good estimates of the property's actual value. When comparing, assure that you are putting similar properties in comparison. Get down to the specifics- how large is the property, what is the lot area, what are the amenities, what is the estimated cost of repairs and others. For more reliable predictors, compare the property being auctioned with properties lying within 3 miles.



FINANCING: When buying at an auction, it is not always necessary that you are buying with your own money. You could also get financing from money lenders and mortgagors. However, there is a danger to this- you have to pay the interest of their money on top of the total amount of money you are borrowing. That might hurt your finances a bit. Nonetheless, you must be ready to put some money down as a deposit if you win the auctioned house.



PRICING: Once you consider bidding on a particular property, start setting your price limit. Remember that the reason you are at an auction is to save some money while getting the property you want. If you cannot achieve this then it is senseless to buy from an auction. Try not to join a bidding war if it occurs. This will increase the price unreasonably with you on the losing end.



WALK AWAY: To every house that is being auctioned, there will only be one person who will win it over the others. Thus your chances of winning the auction is a lot lower than you might expect so be prepared to walk away.

How to Prepare Yourself for Buying at an Auction

Maybe you are considering the option of buying at an auction. It may be a car, office supplies, an addition to your collection or real estate property. Whichever is your choice, you certainly have to undergo some basic auction preparations. Here are the general ideas:



FIRST STEP, know the type of item you want and the respective auction where it is showcased. Almost everything under the sun can be bought at an auction. If you want second-hand cars, you must go to auto auctions. If you opt for buying an old building you need a real estate auction. If you have no concrete idea of what to buy, it is best to go to government auctions where they sell just about everything at very low prices. There are also high-end and low-end auctions. Each showcases various items and properties that differ in price ranges.



SECOND STEP, know the rules of the auction house. Each type of auction has a number of auction houses and each auction house has its own rules. If you are a first-time bidder, it is in your best interest to do your homework first and research on the purchasing or selling rules of the auction house. Most auction houses require registration fees from their participants. This could be withdrawn after the auction. Also, many auction houses require a buyer's premium from bidders who've won the item.



THIRD STEP, know the timing. Auctions vary in timing, they could last anywhere from several minutes to days. The candle auction, for example, usually lasts around 15 to 20 minutes until the candle burns out completely while a real estate auction may last up to 4 days.



FOURTH STEP, check for the inspection time and maximize it. Some auction houses allow viewing time to give the potential buyers the chance to inspect the items they want to bid on. However many auctions do not provide this privilege especially if catalogues are given out.



FIFTH STEP, decide on what items you will buy. Once you see the items, pick out the ones you want to bid on and calculate how much you are willing to pay for them. Then set your price limit and stick with it. It is easy to get swept up by the excitement of bidding so be sure to guard yourself against this. If you let your emotions decide for you, you might be buying things you didn't intend to buy or pay more than you can afford.



SIXTH STEP, register. Almost all auction houses require their bidders to register. You may register beforehand or right before the auction. Before you register, prepare to spend some money.



FINALLY, start bidding and remember the preparations you've had. If you have a plan, don't diverge from it.

How to Profit on Selling Real Estate at Auctions

Auctions of real estate are not only done by people who are distressed about their mortgage fees but also by people who want to make a profit on their own properties. And what is the best way to do it? Real estate auctions.



Real estate auctions create the buzz and interest that may not be had through conventional selling on the open market. Sometimes, this type of merchandising your property may even increase its actual value due to bidding wars that often happen during auctions and by the attention the auction gets. Furthermore, bidding occurs only in a day so any willing buyers will have to compete with other more willing buyers to get the property they want.



Here's how you can profit from selling your real estate:



PREPARATION



To maximize profit, prepare your house for selling. Spruce up the property and make it look good to willing buyers. Paint the exterior and interior, landscape the garden, clean up and put away things that do not look good around your house. These little investments will go a long way in increasing your home's value.



EVALUATION



Have your house evaluated by a realtor or real estate agent. If you do not want to throw in some cash, try to research on the general value of the properties in your neighborhood. Compare it against houses with similar amenities. This will give you a rough estimate of how much your house is worth.



AUCTIONEER



Prepare a meeting with professional auctioneer who offers similar properties like yours. This way you'll get the best value and maximized exposure. Ask for several references. Also, try to attend some of his auctions so you'll know the potential buying capacity of his regular bidders, his performance and his capacity to sell your house.



Then hire the best auctioneer that you can afford. Your best choice may require you to pay a lot more than hiring regular auctioneers. However the best people in this business have the best capacity to attract more interested people in buying your property.



Before signing any contract or agreement be sure to read the fine print. You never know what you will run in to. Also, be sure to note how much commission you will give him and other expenses that you may have to pay during the entire process.



Lastly, with the help of the auctioneer set a reserve price for your house. This is the least amount of money that you will get from auctioning your house.

How to Sell Your House at an Auction

An auction is a popular selling method for houses, especially for the owners of foreclosed homes, due to its many benefits. It is the quickest way with the highest guarantee of sale. Here are some guidelines that will help you determine whether you should auction your house or not.



Which Properties to Sell

There are several types of properties that are best sold at auctions rather than under normal circumstances. They include:



Houses that are hard to sell through conventional means: There are certain types of houses that simply can't be sold through the open market fast. These include those that are in really bad shape and have received no repairs over the years, properties that have very unorthodox designs and those that don't receive good advertisement. All of these types could have a fair chance of getting sold through an auction.



Houses that have no definite value: These are houses that are marked for their distinctiveness but are rather hard to sell on the open market.



Foreclosed houses: Owners of foreclosed homes usually resort to auctioning their houses for faster sale to compensate the expenses, the unpaid bills and sometimes even to save the house itself from being foreclosed.



Highly-demanded properties: Popular houses get exceedingly higher selling prices when auctioned.



Evaluation Period

This entails the process of assessing your property and the potential auctioneer/s. Before you decide to sell it at auction, it is best to shop around for auction houses that fit your requirements. Have your property evaluated first so you'll know what is the reserve price of your house and the total value you should get after the auction. Then, check the price range of the properties that the auctioneer offers. This way, you'll be able to increase the possibility of getting a satisfactory deal for your property.



Properties at auctions are sold as-is but the owner has the option to increase its value first. For example, repairs, doing a bit of cleaning and restoring the property will actually increase its selling price.



Knowing the Cost

Auctioneers don't come free. They charge their clients for the brochures, advertisements and the general services they provide whether the house is sold or not. Also, you might pay a minimum commission of 2.5% from the sale of the house. To get around the unsolicited expenses and the payments that you may not expect before and after the auction, negotiate well with the auctioneer and read everything before signing anything.


Selling Proper

Before offering the house for auction, set the reserve price first - this is the starting bid for the property. Consult with your auctioneer before setting the reserve price. Second, arrange the contract. Finally, prepare the property for viewing by willing bidders.



Selling itself will occur during the auction. Potential buyers will bid on it. The one with the highest bid wins and the sale is official and legally binding.

How to Sell your Item at an Auction?

The process of selling an item at an auction is pretty straightforward. You choose an auction house, know the conditions before signing an agreement, and stand back and wait until your item is bought.



Choosing an auction house is crucial for the sale of your item. Landing a wrong one greatly reduces the chances of getting a favorable sale. As much as possible, pick an auction house that sells items similar to yours within the same price range. There are privately-run auction houses that sell specific items such as jewelry, antiques, artwork, vehicles, or vintage cars. There are others that sell miscellaneous goods. Do some thorough research on the auction company carefully before selling your items through them.



Knowing and understanding the conditions set by the auction house before signing an agreement is important.



There is a cost in placing your item in an auction. One is the commission of the auction house on the sale it has made on your behalf and the other is for the advertisements in catalogues and brochures regardless of whether your item is sold or not.



Keep in mind the things you need to prepare including the reserve price, the contract, and opening your property for viewing (especially if it's a house).



A reserve price is the lowest amount at which you are willing to sell your item. To determine how much your reserve price is, you need to have your property appraised. It is based on the actual market value of the item you are selling. It protects you from selling your item when the final bid is lower than your intended amount of sale. Auction houses charge a fee when setting a reserve price.



The contract contains your terms and conditions of the sale which should be prepared by the solicitor of the auction.



If you are selling a property, have it opened for viewing. This allows potential buyers to inspect the condition of the house.



Once the auction starts, you have no control over your item. An auction is a highly volatile marketplace and the final price is dictated by the bidders. You may get a good deal but if the demand is low, you might end up selling your item at a low price.



One important fact: Whether your item is sold or not, you will pay the auction company. Calculate carefully if it is worth it to sell your items through an auction.

Items for Auction: What Are They?

An auction is basically offering a property to all willing bidders and awarding it to the one with the highest bid.



Traditionally, auctions were a form of selling women to those who wanted to buy slaves or wives. The beautiful ones naturally got the higher prices while those without beauty had to pay the auctioneer to get listed on the auction. These days, however, auctions have become a popular substitute for the open market. While anything can be auctioned, there are several kinds of merchandise that yield the highest sale when put to auction.



ANTIQUES



Antiques are popular among collectors. These could include items like watches, clocks, jewelry, historical items, furniture and others. There are so many different reasons why people are interested in antiques. Usually history buffs have the highest tendency to collect items with historical value or significance. Possibly someone who has been given an old article or item and just wants to expand his collection of the same thing. For example, someone who is fond of collecting potteries or porcelain from various periods of American history will find it relatively easy to obtain more of these items from auctions. Auction houses are one of the vast sources for collector's items.



FINE ART



Paintings and sculptures are staple items sold at auctions. Both buyers and sellers find it easy to dispose and hunt items that are artistically made through auctions.



COLLECTIBLES

Medals, coins, postcards, stamps, memorabilia are among the collectibles sold at auctions.



PROPERTY



Foreclosed properties are usually offered at auctions to help previous owners generate funds that will cover unpaid bills. While this may be popular due to the rise of home foreclosures in the past five years, many buyers find it hard to get homes that satisfy their dreams. But this does not negate the fact that auctioned homes could provide you the chance to get your dream house at a discounted rate.



HOUSEHOLD



Carpets, garden equipment, beds, furniture and appliances could be bought at auctions. For people who have the need to dispose of their unnecessary household equipment, auction could be a good alternative to a garage sale. For willing buyers, auctions could get them the best deals without the frustration usually experienced at flea markets.



CONSUMABLES and AGRICULTURAL

Wines, beers, produce, and even fish are popular items found at auctions. In Japan, for example, excellent choices of fish are auctioned daily in their larger markets.



As you may notice not everything can be auctioned. In short, only merchandise, properties and real estate can be sold at auctions.

I Won Something! What Now?

First things first: different auction houses have different ways on how to go about the process of collecting payments for the goods they have sold. Thus, it is a must that before you even begin to bid for something, you need to carefully read and understood the payment process.



These differences, however, may just be on small details. Generally, auction houses employ similar procedures of collecting payments.



The highest bidder will be asked to sign an auction memorandum or a sales invoice, or a paper signifying that he or she has won the item.



When a person wins an auction lot, he or she is required to pay for it immediately or pay within a period of days indicated on the terms and conditions of the auction company. Some auction houses require the winning bidder to pay for the lot at the end of the day or right after he or she has won the lot. Other auction houses give the highest bidder a few days to complete the payment. Other auction companies can give the highest bidder as long as 28 days to fulfill the payment obligation.



The type of auction goods often dictates how long the payment should be completed. Home furnishing items, motor vehicles, consumer electronics, and apparel among others are often required to be paid for immediately. Since there are papers that need to be furnished to complete the sale of real estate properties, the payment often takes longer than the others.



Payment conditions depend on the amount of the item sold. Many auction companies set price ceilings for certain items to identify which payment method to use. For example, an auction house can require the highest bidder to pay in cash if the item he or she has won is $1500 or below.



Modes of payment accepted depend on the auction company. The widely used payment is cash. The following can also be acknowledged as a way in paying auction goods: wire transfer, credit card (MasterCard, Visa, American Express, and Discover) cashier's check, credit union cashier's check, and traveler's check among others. It is important to check with your auction company which forms of payments are recognized.



An auction is legally binding. Once you win something, you cannot back out and refuse to pay. Refusal to pay for the item you have won has consequences including penalties and additional fees. Again, read the terms and conditions of the auction before bidding.

Learning the Auction System

This is a guideline that will help you understand the bidding process more. This does not discuss the exact process per se but the things that you should practice if you want to be successful in bidding at auctions.



Preparation Period

Research is a valuable means by which you could make your decisions from. Gathering some information from all kinds of resources- the bidders themselves, the auctioneers, the catalogue, online information and thorough study could make the difference between getting a great deal or a not-so-great one.



Attending local auctions could also equip you with first hand information that is useful once you hop into the real deal. Most states hold regular auctions, it is best to attend some first to experience how they works.



You cannot join an auction if you don't have the buying power. Arrange your finances first. If you are buying something big- say real estate or foreclosed property- you should try to seek effective financing.



Decision-Making Period

All bidders have their reasons why they go to auctions instead of purchasing from other traditional methods. You should first determine your own reasons for using this option for buying. Are you after used cars and want to get them at the lowest possible price without the tedious negotiation process? Do you want to buy a home but you don't have enough money? Or are you fond of buying just about everything at discounted prices?



There are several types of auctions and each caters to a different audience. Government auctions, for example, provide the main advantage of offering the public excessively discounted items. A fine arts auction is a high end type of auction which caters to artists and collectors who want to buy art works. Antique auctions, on the other hand, are popular among collectors of old and sometimes historical objects. On your end, you should first decide why you are buying at an auction.



Buying Period

This period may begin once you have determined what you want to buy and the auction sites that you visit.



Most auction sites have their websites where they announce their activities. Use these to get more reliable information.



Buying will actually begin with bidding on the item. But prior to that, you should first establish the price limit you are willing to pay for the item you want. Also, prepare a mental plan that you want to follow and stick with it. Use this plan while bidding, it will help you become more critical of your decisions.

Making the Most of Government Auctions

Auctions sponsored by the federal government are the best places to get great deals. Imagine buying a fine set of jewelry for a fraction of the original cost. But like most auctions, government auctions have their own pitfalls. Here are some things to remember when considering government auctions:



Well-known but not advertised

While you can get the real deal from government auctions, there is too little information about it. The government does not bother too much on advertising the auction dates and the items it would be offering. In fact, it is not bothered whether or not the auction will yield profit. All it wants is to get rid of the seized properties and merchandise and sell it to the willing public.



So if you are wondering where to find such auctions, it is best to visit www.usa.gov and start your research from there.



No assurance

The disadvantage of buying at an auction is that you will never know whether the item is in its best condition until you have bought it. The same is true with government auctions. The items sold at such auctions could range anywhere from abused to mint condition. The bad part is it is too seldom that the items to be auctioned will be allowed for inspection. Chances are you won't be able to test drive the car you are eyeing, the most you can do maybe is to test if it starts. The auction organizers, in fact, do not test the items before they put them into auction so don't count on anything.



Competition

A lot of people attend government auctions so you should brace yourself for tough competition. Bidders range from high-end to low-end buyers and you may be up against people who have higher buying power than you.



Intense competition could lead bidders to overbid, which is not really advisable. Overbidding may lead to paying more than you should.



Phonies

Some government auctions are not really sponsored by the government, there are also some phonies out there. To know if the auction is legitimate or not, the best course of action is to check on the website stated above and contact the agency that is being represented by the auction.



Previews

As said earlier most government auctions do not allow previews. This does not mean that all auctions do not provide viewing time. If you are planning to bid on hundred dollar-items you should give yourself the assurance of examining them ahead of time.

Must-Know Things about Car Auctions

Investment wise, buying a car at an auction is a smart move. But this should be done with extreme care because public car auctions have inherent risks and benefits. So before you jump in with your bid it is best that you are equipped with necessary knowledge about auctions. It is not all about finding great deals, it is also about dodging the possibilities of getting not-so-good ones.



First with the cars. Cars at auction are generally cheap. However, the mechanical condition of the cars suffers. You won't know whether the car has mechanical defects or whether the paint is original or not until the buyer tests it. The problem with car auctions is that not all auctions have a viewing time. Meaning some auctions will not allow the potential buyers to inspect the cars they are eyeing. Also, many organizers do not allow test-drives. Thus, any potential buyers are not certain whether the deal they are getting is good or bad.



Also, the cars are auctioned as-is. If the car has a dent then you'll be buying that dent along with the car. Nearly all auction organizers do not bother on fixing the car before they bring it to the auction site.



Second, the extra charges. These may be small and can be easily dealt with however, for many buyers paying extra cash for some fees that they were not prepared for could spoil the deal. Paying the buyer's premium, a fee charged to the person with the highest bid, could sometimes cost a couple of hundred dollars.



Third, the type of car auctions. There are several types of car auctions and these provide features that may not be had from other types. For example, there are auctions specializing only on second-hand cars, there are those that sell vintage cars and there are others that attract people wanting to buy salvaged cars. The buyer will then have to decide the options that suit him best which will let him get the best deal.



Fourth, knowing where to look for auctions. Different auction houses have different mediums for relaying their activities to the public. In short, there are many places to look for when wanting to find auctions. Advertisements are commonly found in radio announcements, local TV networks and car sale magazines.



Lastly, the car auctioneers. A lot of car auctioneers are reliable and reputed for their good services but some of them are not. So ensure to it that you go to auctioneers that operate on regular basis but sometimes, even that is not an assurance that you are getting the best deals.

Police Auction: A Place to Get Bargain Items!

Everyday all across the country, police agencies like county sheriff departments, police departments, local police agencies, and federal law enforcement agencies acquire lost, abandoned, confiscated real estate, motor vehicles, and other personal properties from different private owners as a result of arrests, forfeitures or plain neglect on the part of the owner. When left unclaimed for a certain period of time or when proven that they are acquired illegally, these items go to police auction.



Police auction is no different from other types of auctions held by privately-sponsored auction houses. You go to the site, inspect the auction goods, bid, win, pay, and go home happy. The main difference is, unlike all other types of public auctions, you do not have to pay a registration fee in order to place a bid. All you have to do is to go to the location and bid.



You may have heard of claims saying that you can drive home an almost new car for just a couple hundred dollars. While this may seem to be too good to be true, there is a truth behind it.



One reason why these goods are being sold dirt cheap is because police agencies really have no use to them. So instead of putting these goods in their storage or at their garage, it is more reasonable to dispose them through public auction. Besides, storage cost are very high.



Another reason for this is that police auctions are not as popular to many as most people are more aware and would certainly go to online auction sites and privately-run auction house. As a result, there are less people that participate in the bidding. This keeps the price of the auction goods low and if you are lucky enough, you can get the item without dealing with the competition.



Third, many goods on sale at police auctions are not appraised. Meaning, the minimum bid is not based on the current market value of the goods. Thus, there is a possibility to get items at the least possible price.



Finally, there is a negative notion that goods being sold at police auctions come from criminal. While this is true, most of the items here do not have bad history of ownership. Still, most are discouraged to go to police auctions.



Police auctions are held on announced schedules. You can get auction schedules on the police agencies' offices, community boards, local newspapers, and police websites.

Property Auction: How to Decide How much to Bid?

Buying at an auction is often a much faster and easier way to own a property. However, as fast and as easy things may appear, there are jobs that need to be done; including setting the highest amount you are willing to pay for the property.



Here's how to decide how much to bid...



First, once you see the property you are interested in, call the auction house and arrange the viewing. This way, you will be able to decide according to the present condition of the property. Initial impression will give you a good idea (a personal estimate), how much you are willing to pay for the property.



Then, consult your mortgage lender and tell them about the property. They will not lend you money unless a survey or an appraisal is conducted. Know how much you can afford to borrow from your lender



Third, know its market value through an appraisal. This may not give you the exact amount you are looking for but property valuation will give you an idea on how much you should really pay for the property.



Also factor in the deposit you can afford. Usually, the least amount that the auction house accepts as down payment for the property is 10% of the final sale.



Compute the possible repair cost. Properties that are sold at auctions often come from repossession, foreclosure and bankruptcy. So it is likely that they may not be very well-maintained. And to make it livable, you need to do some repairs or renovation. Hire a professional do an estimate on the cost of the repairs. Include the cost of repairs on the highest amount of your bid.



Take into consideration several fees including survey fee, valuation fees, mortgage indemnity guarantees, arrangement fees, solicitor's fees, mortgage broker fees, lender fees, stamp duties, moving cost, auction registration fees, insurance, auction house commissions, and the cost of selling your previous home.



Once you have the figures from every detail you need including the price of the property, the cost of repair, and the extra expenses necessary to by the house, you should be able to identify the highest amount you should pay for the property.



Basically, determining how much you should pay for a property at an auction is similar to setting your budget when you buy property from an agent. The difference is, the price is not definite and will depend on other participants at the auction.

Pros and Cons of Silent Auction

Silent auction is a common method to raise money at charity events. But before you adopt this system to your own charitable gathering, first take a look of its pros and cons. This will enable you to know how to adjust and make everything work for your advantage.



There are two ways to run a silent auction: first is by keeping the bids private and the other is by showing publicly through a bidding sheet the previous offers made by other individuals.



Pros



It gives no clue on how much the bids of others are. If the bid history is not written and displayed on a bidding sheet, others bidders will have no clue on how much they have to write in order to get the highest price to win the item. This can result in surprisingly good price returns.



Usually, the auction is just a part of a charity event. Thus, a silent auction will not detract people from entertainment as items are not being called by an auctioneer; instead, items are displayed for people to view and later, bid.



The bidding sheet includes the previous bids made together with the name of the bidder. If this is the case, individuals will think about the price they'll write in order not to draw negative reaction from others.





Cons



Long bidding process may give bidders time to consider the amount they are going to write. This is unlike regular auction that capitalizes on the impulse of buyers to bid on items higher than they originally have in mind. This is perhaps the major drawback of silent auctions.



If the bids are kept privately, the selling price may be lower than what is expected. This is because people have no idea whether or not they have to write down a higher amount to outbid others.





Silent auctions are not a perfect fundraising system. Still, it is said to be the more preferred way to raise money for a cause. The reason is that these drawbacks are often worked out so that it won't have a negative effect on the result of the auction. One way to do it is by using a type of silent auction that will work for the crowd. Another is to combine silent auction with regular auction. Ultimately, the choice is still in the hands of the organizers.

Real Estate Auctions: Will It Work in Your Favor or Not?

The number of bank-owned properties is steadily rising. Thus it is easy to find houses that are either for sale, foreclosed or being auctioned in any neighborhood. Nearly all neighborhoods are flooding with such properties and lenders, homeowners and mortgagors are willing to negotiate the prices for easier sale or to auction the houses to get the highest market value available.

A great deal of real estate properties are put on auction for the belief that the buyers could be carried by the hype of the bidding wars which in return, could lessen the devaluation of the properties. In most cases, many buyers jump into the hype and place bids that are beyond the prices that they first set and the prices that they could practically afford.

However this is not true in all cases. There are real estate properties that could sell even at the lowest prices available. If no one bids on the property, the owner might even have a deficit. If there are too few interested in the property, on the other hand, the owner might not get his expected value but the buyer will have a property at a much lower price. In general though, foreclosed real estate properties that are being auctioned are sold at a discounted rates to leave money to the new homeowner for repairs and refurbishments. Also, banks and mortgagors have no more interest on profiting from such sales. They only need the return of their investment or security of low deficit due to the cost of maintenance and other expenses over the property.

If you are interested in buying real estate from an auction, you should be very careful while bidding. Sometimes the highest bid is not the final price of the house. Remember that the auctioneers have to get a commission for their service. On the other hand, if you are bidding on a foreclosed house, you don't have to give really high bids to get the property. Allow yourself some money to cover for some unsolicited expenses after buying the house.

Nearly all auction houses have predetermined percentages over the houses being sold to be received as payments. When bidding, calculate this amount and add it to the highest bid you are willing to bid. For example, the typical commission is around 5%. So if you are buying a real estate property at a price of $100, 000, expect to pay a little more than that.

The main selling point of real estate at auctions is getting the property you want at a reduced price. So be sure to get that. If the price is not giving you that advantage then forget about the property.