Auctions can be pretty intimidating, but they are exhilarating, a way to save big on antiques and everyday items, and if historic items are sold, almost like a trip to the museum.
Frankly, there is no reason to be weary about an auction. Unlike estate sales, auctions can be very civilized. Don't get me wrong, they're competitive, but in more of a psychological and strategic manner. I like to compare auctions to blackjack tables at a casino. Anyone can grab a seat and participate, but if you have no clue what you're doing, it will show, and the competition will take advantage of that. That is why, like with blackjack, you often see people watching and learning before they lay down that first chip and participate. At an auction - I don't care if it is for cows or Picassos - you are competing against experienced dealers, collectors, and people who have been in the business and attending auctions for decades. The beginner will benefit from educating him/herself about antiques and value beforehand, and always exuding confidence. To help you out, below are the top ways to cut through the intimidation and attend an auction with knowledge and confidence. Before the Auction Know the terms and conditions of the auction. These are the legal terms that govern the auction, including acceptable forms of payment, terms, buyer's premiums, reserves, delivery (if available) and when items are to be removed from the premise after auction. Always attend the preview. This is held usually the day prior to, and morning of the auction. It gives participants time to examine the antiques and items up for auction. The auction house has no obligation to list flaws, damage or marks in the item description, so it is up to you to investigate all antiques and items of interest. All sales are final at an auction, unless the auctioneer misrepresented something. You may attend the auction to bid, but the preview is the heart and sole of the auction. This is where you will gather information to later help you determine the market value and your maximum bid for each antique. Examine every antique, collectible, and item you may potentially bid on. Do not feel rushed. Do not pass go. Take your time and inspect the condition, materials the item is made from, identification marks, wear, restoration/refinishing, etc. Study the wood and the craftsmanship, check out every piece of china in the set and not just the pieces on top, flip books and records over to make sure the back isn't flawed. At the preview, makes notes that you can use to perform further research to help determine the antiques' value. And don't forget to have fun! Create an auction preview toolkit. Include a notepad for notes; a pencil; pocket-sized magnifying glass for checking coins, signatures, chips and cracks; a magnet to detect real bronze from fake bronze, which is often made of iron and will attract the magnet; a blacklight if you are searching for Vaseline glass; a small flashlight if looking for high quality jade (translucent with no cracks are the best); and a small pocket mirror to look under large items for damage and/or consignment numbers in chalk. Numerous consignment numbers on the underside indicate the piece has been up for auction without selling and can mean the item has issues. Request and study the auction catalog. Normally, a catalog lists all the items up for auction. Sometimes it is free and sometimes the auction catalog will put you back a Happy Meal or two. It depends on the auction house. The catalog is an excellent reference tool when determining your maximum bid as it often lists estimates for each item. What is an estimate and how accurate is it, you ask? Good question. An estimate is what the auction house thinks each antique and item will sell for. This is meant to serve as a guide for bidders and what I like to call the "get real factor," meaning don't be shocked when you don't win an antique estimated at $10,000 with a bid of only $500. Estimates are not "appraised values," they are simply guides of what the auction house feels an item will sell for. In fact, an estimate can be high only because the seller of that piece had a high reserve. On the other hand, a low estimate doesn't mean the antique has no value, it may mean only that the auction house doesn't recognize or have experience with that particular item. Educate yourself about the antiques and items you will be bidding on. Reading specialized magazines pertaining to your antiques of choice, researching online auction prices, and attending offline auctions are the best ways to educate yourself on the market value of antiques. Subscribe to a specialty magazine for each area of your collection. For example, if you buy coins, art, and stamps then you should have a specialty magazine for each one. Attending auctions for entertainment and educational purposes only is another great way to learn and research prices. You don't always have to bid, you can just go there to observe and learn. Another way to research pricing is to visit antique stores and malls to see how much similar items are selling for. It is important to note that if you see a table selling for a certain price at an antique store, it was probably purchased for one-third to one-half as much and then marked up. So, don't expect to get the same amount for your item. Never enter an auction without a set price for each item. Any professional auction attendee will tell you this. Determine a price for each item in advance. Write it down. Memorize it. Then stick to it. Otherwise you will get caught up in the emotion of the auction and pay too much. When you pay too much for an antique at auction, you tend to see it with new eyes. It is no longer that beautiful vase you hoped to get a good deal on, but rather that stinking overpriced piece of glass you wish you never bid on. Plus, that marks up your resale price and may exclude a good deal of potential buyers. The price you set depends on 1) what you can afford, 2) what you determined the value to be through your research and hence what a fair price would be, and 3) how many other items you would like to bid on. And don't forget to take into consideration the condition, quality, and rarity of the antique. Register as soon as possible for the auction. Often you can do this the day before at the preview. By registering the day before, you the auction you can Bidding During the Auction You're itching to know what the most strategic seat in the auction house is, aren't you? First, think about where you would sit. Did you say somewhere in the front, maybe the fourth row on the left side of the room so you can see the antiques well? Let's pretend you're sitting there during the auction and you just bid on an item. The auctioneer acknowledges you then looks over your head to someone in the back who had just outbid you. You bid again. The auctioneer's eyes acknowledge a higher bid behind you. You're irritated. A bit annoyed. Maybe you turn around to see who is bidding, but are unable to tell. See what is happening here? You are distracted, annoyed, and concentrating on this "mystery bidder" rather than the auction process. You're uncomfortable because the bidder can see you, but you can't see the bidder. You tense up. Do you even remember what your set amount for this item is at this point? In frustration you will either give up too early, or bid too much. Either way, you lose. So, now you know that the best seat in the house is in the back row behind other people (in other words, hidden from other bidders but not from the auctioneer). It doesn't matter if you see the item up close because you already examined it at the preview. What you need to concentrate on at the auction is winning your items at the best possible price - nothing more. Once the auctioneer opens bidding for an item, don't bid right away, be patient. The item may open at $200, but if no one bids, the auctioneer will reduce that amount to entice bidding. The only person who can throw out a high number and then reduce it, is the auctioneer. If you jump in at a high amount, that number is only going to increase. So, wait and see what happens. If you really want the item, it doesn't matter if you're the first bidder, as long as you are the last. The only exception to this rule is when the opening bid is decreased at least one third, the crowd is still not bidding, and you know you can resell the item. Then you may want to jump in and end it quick while you still have a good deal. Here is an example. A mixed set of twelve Rooster and Roses ceramics by Ucago (United China and Glass Co)/Py is opened at $100. That price alone is a good deal. You didn't plan on bidding on this, but know that they sell well online as individual pieces, and this lot is in very good condition. No one bids, so the auctioneer decreases the amount to $80. Still no bidders. He goes down to $70. You know you can probably sell these for $140 online, so you bid and you win. If you had waited for the auctioneer to go down to $50 (half-off) or lower, attendees will bid knowing nothing else about the items except that they are attractive and priced well. Suddenly a bidding war starts and the item sells for more than the opening bid (this is exactly what auctioneers hope for when they reduce the opening bid). You have to stay alert and move fast. Always listen to what the auctioneer is saying because he/she will usually know more about the object than you do. He/she knows what bid will get the blood pumping and bids flowing, and your goal is to jump in right before that happens. Remember, the auctioneer's goal is to make the most money. Nothing they do is by accident or unorchestrated. Your goal in all of this excitement, competitiveness, and orchestration is to obtain the best deal, and that takes knowledge of psychology and strategy. If you plan to resell the items you buy at auction, pay attention to the "unwanted items" or the antiques and collectibles that no one is bidding on. During the preview, check out damaged and dirty items, over-sized furniture, gaudy pieces, or box lots with many like pieces. These will probably have the least amount of bidders and become a good deal. Are the most valuable items auctioned off at the beginning or the end of the auction? Neither. They are normally auctioned off in the middle; when everyone has arrived, and attendance is at its height. So, next time you're at auction, pay attention to those mid-auction antiques and make a mental note for value's sake. On eBay, it is considered "shilling" to bid on your own items to increase the asking price, or to make sure it doesn't sell for grossly under its worth. However, in offline auctions this is a regular practice. That is why is it important to have a set price and to stick with it. Don't get caught up in the competitiveness of the auction and don't fall prey to the auctioneer. Remember, you actually have to pay for anything you buy! Finally, a note about auction etiquette. The pace is quick and your decisions must be, too. If you're in a bidding war at an auction, don't make the auctioneer wait while you consult everyone around you. This isn't The Price is Right. Bid and move on. If you decide not to bid, let the auctioneer know with a head shake that you are passing. After the Auction During the auction, jot down the items you won and the price of each, so when you check out you can confirm the total. Cash and credit cards are the preferred method of payment. Some auction houses never accept checks, so ask first. Delivery is the responsibility of the buyer. You must pay to have the item transported to your home. If your item is being delivered, be sure to inspect every corner of it before accepting delivery. It is a smart idea to take pictures of it as well.spend your time prior to the auction reviewing the items you plan to bid on, preparing mentally for the auction, and obtaining the most strategic seat. ********************************************************************** This message and its attachments may contain legally privileged or confidential information. If you are not the intended recipient, you must not disclose or use the information contained in it. If you have received this e-mail in error, please notify the sender immediately by return e-mail and delete the e-mail. Any content of this message and its attachments which does not relate to the official business of Eraring Energy must be taken not to have been sent or endorsed by Eraring Energy. No warranty is made that the e-mail or attachment(s) are free from computer virus or other defect. ********************************************************************** [Non-text portions of this message have been removed]
