How Online Estate Auctions Work

Does your idea of a perfect Saturday involve getting up early and hitting an estate sale or two? You can find an incredible array of pre-loved treasures at these events, including one-of-a-kind antiques and collectibles that you can't get anywhere else. 

Thanks to the ever-evolving power of the internet, did you know that you can now enjoy this activity from home? An online auction gives you a front-row seat to an even greater number of goods, all available at your fingertips with just a few clicks.

Today, we're sharing how an online estate auction works and what you can expect when you shop at one!

Why Do People Hold Online Auctions?

With an in-person estate sale, families are limited to people who could make the drive to their location. While they may garner plenty of interest from their local community, their reach is ultimately limited.

For that reason, many loved ones are left with unsold furniture and accessories at the end of the sale. This heaps complexity and frustration onto an already trying time. 

With an online auction, they can reach anyone with internet access and a keyboard. This makes it easier to sell their items to interested bidders and simplifies the overall process. There's also no setup or tear-down process to contend with, as the sale is hosted entirely online. 

Two Options For Setting Up an Online Estate Auction

When someone decides to set up an online auction, they can go one of two routes. The first is to list all of their items for sale individually. To do so, most people use an online auction site like eBay.  

If you're looking for a particular piece, such as an heirloom china set, then you can go on these sites and enter your search term. This makes it easy to see if the auction includes that specific item. If you find it, you'll simply complete the checkout using the site's platform.

While this is a viable option, many homeowners find that it's easiest to trust a professional to take the reins. They'll partner with professional liquidators or estate sale companies that will take care of every aspect of the sale. This includes taking the pictures, adding descriptions, setting the pricing, and handling the transactions. 

In either case, once the items are online and up for sale, the bidding process will begin. Sellers will set a minimum sell price as a jump-off point, designed to reflect the value of the item.

If you've ever bid on anything before, you know how fast-paced it can be. This is especially the case with rare, vintage pieces that multiple buyers are clamoring over. That's why it's important to understand the logistics of the auction.

Let's go over a few of the different formats that you might encounter. 

Types of Online Auctions

There are multiple types of online auctions. Each one works in a unique way and includes its own set of rules and regulations. Let's take a look at how each one operates. 

Timed Online Auctions

As the name implies, a timed online auction lasts for a defined amount of time. In most cases, these auctions last for a few days or a few weeks. 

Once the time is up, the auction is over. The bidder who has bid the highest price on each item will win that piece. As the time draws nearer to the close, you'll need to check your current bids to see if you're at the top.

If not, then you can raise your bid amount to increase your odds of winning that item.

Soft-Close or Extended Bidding

In a soft-close or extended bidding auction, the time isn't quite as absolute. With this format, if someone increases their bid in the last few minutes of the auction, the end time for that lot is extended. 

This process can continue indefinitely, as long as there are last-minute bidders going back and forth with one another. Once there are no more bids for a few minutes, the lot will be considered officially closed. At that point, the highest final bidder will win the item. 

An online auction can have multiple time advances like this. Once all of them are finished, the auction is fully finished. 

This is a common method for online estate sale companies. They will often stagger the designated end times for individual lots, so the entire auction does not end at one official time. This encourages shoppers to check back often and see what's still available!

Absolute Auctions

An absolute auction most closely resembles a traditional, in-person auction in that the item goes to the highest bidder, and there is no set, reserve price.

In fact, in most absolute auctions, the minimum bid starts at $0. This is the reverse format of another type of auction, the Dutch auction. With that type, bidding starts at a high price and decreases until the auctioneer reaches a dollar amount that a bidder is willing to pay. 

Finding an Online Estate Sale/Auction

Families who choose to use a third-party estate company will give the company authority to list all of their items on their site. You can search for an open or upcoming online auction through sites like ours. 

If you're looking for the best online estate sales, then don't limit yourself to one site. Friends and family members will usually post about the auction on their personal social media accounts, so remember to check there. They may also be listed on your community's local Facebook group, or yard sale website. 

In addition, look around your neighborhood and community for signs advertising details about the auction. Similar to an in-person event, these signs will include brief details about the auction, including the web address that you can visit to learn more about the available items. You may also learn about some in your newspaper's classified section. 

Registering For an Online Auction

Before you can begin bidding on items, you will need to sign up and register for the auction. This is usually a quick and easy process that only takes a few minutes. You will need to supply this general information:

• Name
• Address
• Phone number
• Email
• Payment information

 

In terms of payment, most online auction companies will accept all major credit cards. You will not be charged until you officially win an item. 

Bidding on Items

Once you're approved as a bidder and the sale you're eyeing is live, you can start browsing and bidding on auction items. Anyone is free to place a bid, as long as they've completed the preliminary steps. 

With some auctions, you can place what's known as a pre-bid. This represents the amount you're willing to pay for the item before the bidding contest begins. Others can bid against you by setting their own pre-bids/

When the official bidding opens, keep an eye on the clock. Some companies will group items into collective batches, or lots. They may post each lot individually, sometimes with different end times. 

Be sure to read all of the fine print and understand the details before you begin the process. For instance, if you do not live in an area that's geographically close to the seller, then you may have to pay for additional shipping costs that were not included in the bid price. 

This might not be a deal-breaker for something small like a framed print. However, if you bid on (and won) a large piece of furniture, such as an antique chest, it could become much more cost-prohibitive. 

Most online auctions are open for about one to two weeks. If you bid early, remember to check back often to see if you're still the highest bidder!

Tips to Keep in Mind

Participating in estate sales online can be a fun and rewarding pastime. However, there are a few things to keep in mind that can make the experience that much more enjoyable. 

• Only participate in auctions hosted by reputable auction houses or estate sale companies.
• Bid what you can comfortably afford.
• Research the item before bidding to ensure that the valuation is accurate. 
• Don't start with your maximum bid.

Find an Online Auction Today

While there's something to be said about the excitement of an in-person auction, nothing beats the convenience of placing a bid from your pajamas. 

An online auction gives you the freedom to browse items at your convenience and allows you access to sales happening all around the world. Plus, you can easily research the history and value of each piece by simply opening a new browser window!

When you want to find your next online estate sale or auction, our platform makes it easy. Be the first to know about newly posted auctions and easily search by location or item name. Register today to get started!

Ready to locate an estate sale company or explore online estate auctions? Visit AuctionNinja.com. If you're new to online estate auctions, try it risk-free by sigining up here.