How to Bid at an Auction

Unlike the fictional auctions you see in movies, real auctions offer simple and well-organized bidding processes. Before you attend one, familiarize yourself with these basics.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Auction Catalogs
• Price Guides
• Arts And Antiques
• Credit Cards And Loans

Preparation and Registration

1. Get a catalog from the auction house that lists items available at the auction. It will include photographs, brief descriptions and estimated presale values.
2. Note the lot numbers of items that interest you.
3. Inspect the items you're interested in before the auction. Many auction houses host presale viewings that are open to the public. Prospective buyers are encouraged to touch as well as view items.
4. Take comparison catalogs along to see what the prices might be on the open market.
5. Go to the auction house and fill out a registration form. Registration usually requires at least one form of identification and a credit card or bank reference.

Bidding in Person

6. Take the paddle you received when you registered with the house. The paddle will have your registration number on it.
7. Open the bidding by raising your paddle to bid on a particular item when the auctioneer calls for an initial bid. If this is $1,000, you have just bid $1,000.
8. Listen to hear whether someone raises your bid. Bidding moves in standard increments, usually 10 percent of the initial price. If so, that bidder has raised the bid to $1,100.
9. Raise your paddle again to bid $1,200.
10. Raise the bid by an increment different from the standard raise (called a "jump") by simply raising your paddle and calling out your bid.
11. Listen for the auctioneer to ask for final bids as the bidding winds down.
12. Hear how the auctioneer closes bidding and acknowledges the sale. He calls out the buyer's number and adds a description, such as: "Sold to number 35, the man in the third row in the red shirt and plaid trousers." This eliminates confusion about who bought an item.

Tips & Warnings

• Hire and take with you a knowledgeable expert who can give you "on-the-spot" counsel regarding the value or condition of an item that may be of interest to you.
• Companies that have "merged" will often phase out duplicate hardware or items that are somewhat "dated."
• When a company upgrades to faster computers or better printers, much of this equipment has value at a greatly reduced cost to someone looking for basic Internet access or word-processing functions.
• Mark your catalog with the top price you are willing to pay. Be sure that the item is in acceptable operating condition.
• Visit an auction simply to observe dynamics and procedures before you visit one with the intent to purchase. Ask questions of other potential buyers. Listen carefully to the auctioneer.
• If you cannot attend the auction in person, call the auction house a day in advance of the sale and explain that you wish to bid by telephone. It will set up a phone line for your use during the auction.
• If you cannot attend the auction in person or get to a phone, ask the auction house for an absentee form. The form will ask for registration information, the lot numbers you wish to bid on, and the maximum amount you are willing to bid. These forms must be received by the house at least a day before the sale.
• Know what you want. Don't bid out of the emotion or excitement of the moment.
• When picking up your item, you will be asked not only to pay your bid price but also a buyer's fee (usually 10 to 15 percent) and any applicable tax. Take these fees into account before bidding.