Suppose you are a smart shopper and try to get the most for every dollar you spend. In that case, online auctions are not only fun, but they can save you serious money, sometimes hundreds or even thousands of dollars on many types of used products:
- fine art
- collectibles
- gently used furniture
- home accessories
- patio and garden accessories
- top brands of clothing
- tractors
- trucks
- farm & construction equipment
- vehicles
- riding mowers
- construction materials
Recognizing an absolute bargain, not getting duped and not over-bidding is the key to buying successfully from online auctions. So how do you prevent yourself from becoming a victim?
Here's how: In this article, we provide tips for bidding safely and becoming a savvy shopper when attending an online auction.
Due Diligence
Auctions are all about getting items you would like to have at the absolute best price, so due diligence is essential. Many auction houses now offer online bidding as well as in-person. Those that offer both typically set aside dates and times ahead of the auction for people to check out the merchandise firsthand. Some bidders who wish to remain anonymous send "runners" to preview the inventory.
Online auction sites are quite different—sometimes you can "preview" the merchandise online before the start of the auction, but that is not totally without risk. However, auction sites are prohibited from misrepresenting the merchandise, risking banishment. Hidden damages in unopened boxes are precluded, and the seller must make good on the purchase.
Check out the auction site's reputation and accreditation with the Better Business Bureau. Reputable online auctions will include all their contact information—call them if you still have questions. To avoid any misunderstanding, read and understand the auction terms, rules and policies, including:
- Buyer's premiums
- Bidding increments
- Cancellation of bids
- Condition of the item(s)
- Conditions for returns
- Delivery fees
- Forfeitures
- Forms of payment accepted
- Payment terms
- Pick-up locations
- Refunds
Know what items you will bid on--read the description thoroughly. While the site may display several of the same items, the description spells out the details, such as the color and how many of those items you are bidding on (1 each, 1 case, 1 box of 2, etc.) If a seller is satisfied with the bid and has several of the same items, they may open up the buying to all bidders at the highest bidder's cost to liquidate the whole lot.
If you are attending a live online auction, make sure you understand the auctioneer and know the following bid amount they are calling for —bid carefully, as many online auction sales are final.
Special Auctions
There is a wide range of online auctions sites available. While many sites offer a broad variety of merchandise at bargain-basement prices, specialized auctions may require some additional attention. For example, if you are in the market for a vehicle, whether personal or for commercial use, you can find sites that offer used ones in "great condition," "need some repairs," or "good for parts," to name a few.
These sites may ask you to put up some "buy-in" money to ensure you don't default on paying for your purchase. If you are not the winning bid, that amount is refunded to you in full. If you withdraw an offer, there is typically a forfeiture amount of the buy-in money, similar to a restocking fee.
High-end merchandise that is offered online often includes exclusive pre-conditions. For example, if you are planning to bid on a foreclosed house online, you may be required to have your financing in place and submit a letter stating the same from your financing facility. Your letter will disclose how much you are approved for; typically, these bids are sealed, and only the auctioning agency will know how each person bids.
Government Auctions
Government auctions list thousands of items in all 50 states. You can search for items of interest online, from seized and surplus vehicles to foreclosures. Once you register, you have access to all government auction items. Listings show you many upcoming and current sources where you can get great deals or otherwise buy to sell and profit. These listings include every type of auction for Local, State and Federal agencies, including abandoned, surplus and seized property. These government agencies are generally willing to sell the property for however much they can get. As a savvy buyer at these auctions, you can benefit significantly when you buy a car, a boat or a house, or any large number of other items suited to your business or personal needs.
Penny Auctions
Penny auction sites buy liquidation and overstock premium quality inventory, branded goods directly from brands and liquidators. Scoring at penny auctions is easy –but beware.
With many of these types of auctions, you are required to purchase "Bid Packets"—X number of bids for a specific price. You lose them once you use those bids, even if you are not the winning bid. The more reputable sites now offer you a refund of your spent bids (if you are not the winner) if you purchase the item at the Buy It Now price.
Estate Auctions Online -- Antique and Vintage Pieces
If you've envisioned decorating your home with heirloom and vintage pieces, whether art, furnishings, area rugs or accessories, learning to shop via online auctions can provide you with those and more items at great prices.
AuctionNinja, for example, offers a broad range of household items as part of estate and personal property auctions, with most bids starting at only $1. For those who live in or near the New England states, this site is especially attractive -- most of the items are located in and around that area, although many auctioneers offer shipping nationwide.
When browsing, also be sure to check out their Coins & Stamps or Sports Memorabilia items. And if you are an avid collector of Venetian, Tiffany, Loetz, Favrile, Daum, Lalique, Marilyce Hawke, Galle, Waterford, Steuben and other Contemporary Artisan Glass, check out the many estate auctions.
The Last Word
Now that we've covered the basics, set a budget for what you are willing to spend and enjoy your online auction experience!
Written by:
August 21, 2022 Updated 02:06 PM
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