How to Bid at Auctions

Have you ever wanted to go to an auction? Are you unsure about how they work? While auctions seem rather freewheeling, there are actually customs, rules, and regulations that you should be aware of as you wait for the bang of the gavel and the shout of, "Sold to Number 27!"


First, auctions have previews where you can inspect all the merchandise that will be going onto the block. Make sure that you spend time inspecting items that you are interested in carefully, as all goods are sold as is. Box lots, or boxes that have several items in them that are going to be sold for one price, can hold hidden treasures that the auction house overlooked. At the same time, some of the merchandise in box lots, or any of the other items for sale, may be damaged. You should take this under consideration when deciding if you are going to bid. Whether you are interested in a single item or a box lot, note the auctioneer's item number on a piece of paper that you have brought with you, along with a description of the item itself.


If you are interested in bidding on anything after looking over everything that is available for sale, signup with the office to get a bidding number. You will have to give the office personnel your name, address, and phone number at a minimum. Some auctions require a refundable deposit against any purchases that you might make. If you have a resale license number, the auction house will need to have it at this point so that you will not have to pay any sales tax.


Before you leave the office, it is important to take note of the "buyer's premium." A buyer's premium is the percentage that the auction house is going to charge you on top of the closing bid. Buyer's premiums run from roughly ten to twenty five percent. So, if you win a bid for a fur coat for $100 and the buyer's premium is ten percent, you will have to pay $110 for your coat, plus tax if you do not have a resale license.