Sunday, February 08, 2009

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 This could be withdrawn after the auction.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.


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