Going to an auction begins long before the auction starts. The first thing is finding the auctions and determining which ones you may want to preview or attend. It also means paying attention to the type of auction and conditions, whether it’s an indoor auction, outdoor, seating provided, weather forecast, what payment forms are accepted, day/time, and directions.
Finding the Auctions
The most common place to find auction listings is the local newspaper. In most places, the Sunday edition has the most and largest listings, but there are papers where Wednesday or Thursday is the primary day, probably other variations as well. In the last few years, newspaper advertising has skyrocketed, and many auctioneers have cut back on that advertising, replacing it with ads in specialty papers and the internet.
Two of the primary industry papers are The Maine Antique Digest and Antique Week. Both are available in print form or online and include numerous stories as well as auction and show listings. Auction listings are available online, but the full ad is only available to subscribers. However, the basic listing is sometimes enough if the auctioneer has a website. Once you find your favorite auctioneers, websites will probably become the best source of information.
Auction Types
Some auctions are estate auctions, which means that most or all of the items being offered come from the estate of one person or family. In other cases, an auction house takes consignments from a variety of sources in order to put together enough items to generate interest from bidders. One type is not necessarily better than the other, but with an estate auction it can be easier to find out the history of an item. Just remember that not everything in the estate of an older person is necessarily old.
You also need to check whether this is an “on-site” auction or if items have been moved to a central location such as an auction house or a rented hall. This not only affects worries about weather and seating but also sales tax. In most states, there’s no sales tax if items are sold on-site, which means the home of the owner or estate. If items are moved to a central location, you may need to figure tax as part of your total cost.
Conditions of Sale
The auction listing should include other details about how the auction will be run. If it doesn’t, then be sure to call ahead to confirm these details. In additions to time and location, check whether the items are being sold with or without a reserve. If there’s no reserve, which is how most estate auction are run, that means that items will sell to the highest bidder no matter how low that final bid may be. If there’s a reserve, that means that the item won’t sell unless bidding reaches the minimum set by the seller. Reserves are usually limited to more expensive items, such as cars, jewelry and finer antiques.
The ad should include which payment methods are accepted. Sales at auction houses will usually accept major credit cards as well as checks, but on-site auctions may not be set up to take credit cards. Also determine what id is needed for checks and whether or not the auctioneer accepts out of state checks. Ads are often unclear, even inaccurate, on some of these points, so it’s a good idea to call for confirmation.
Bid Versus Total Cost
It’s always a good idea to write down each item you win and the amount of your winning bid. Keeping track of it all in your head can get complicated, and having it in writing helps if there’s any confusion when you’re ready to pay your bill. However, you may need to figure more than your bid into the cost.
Unless you have a vendor’s license and guarantee that you are buying items for resale, you may have to figure sales tax into your total. In addition, a high percentage of auctions now include what’s called a buyer’s premium. A premium is a fee charged in addition to your bid. The concept is designed to keep the percentage charged to the seller low in order to attract consignments.
Premiums at average auction houses usually run between 10%-20%. At the major auction houses, this charge can be even higher. The premium may also vary depending on method of payment. Since the auctioneer has to pay a fee when buyers use a credit card, there may be a small discount for paying with cash or check.
Still, the entire process isn’t as complicated as it may sound, and most auction houses are more than willing to answer your questions. Naturally, they prefer that you ask ahead of time, not when the auction has started or when you are ready to pay.
 |
