Sunday, February 08, 2009

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.


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