What many people do not understand is that the days when auctions were supposed to be in-person events only are long over. In this day and age, there are several different types of auctions, including online auctions.
However, online auctions are much different than in-person auctions and although they may give you much more room to breathe, they are also difficult to understand – especially if you happen to be new to the whole bidding-at-auctions scenario. Some auctions allow you to bid absentee, by phone or even bid live as the auction takes place using a website. Luckily, here are some things that you should know about bidding in online auctions, so you are sure of what your next move should be:
Do a Lot of Research
So, you saw an ad for an online auction and seem to be interested. What is the first thing you should do? Well, do a significant amount of research! Understand and know the company that is hosting the auction in addition to the items being sold at the auction. For instance, the renowned auction house Rock Island Auction Company, is one of the few auction houses that host both online and in-person auctions. This, of course, gives the company credibility. Rock Island Auction Company was founded in the year 1993 and has since then established a reputation for the auctions that they hold. Their firearms auctions are the most popular auctions in today’s age. Rock Island Auction provides a full online catalog, with thousands of photos and detailed descriptions. You may find other auctions just use a rating system to grade the guns condition. Make sure you have a full understanding of the condition of any gun before bidding.
Know the Deadlines & Hidden Charges
Online auctions can be rather tricky. This is because there may be a lot of hidden charges that you may overlook initially, only to regret once you have already started bidding. To avoid finding yourself in this situation, it is best to ensure that you are aware of the hidden charges that you will be paying for later. Most auction houses have a buyer’s premium which is an additional charge, usually a straight percentage, that a buyer is charged based on the hammer price. This varies greatly between auction houses.
Additionally, you should also bear the deadlines of the auctions or the products so you know when the last bid can be made. In online auctions, sometimes, it’s all about that last bid.
Set a Budget
Many people tend to overbid at online auctions, and this is simply because they are doing so from the comfort of their own house. Now while this may seem appealing, this can cause you to get into a bid war with someone over the internet and start overbidding on a product even if the item’s value isn’t all that great. After all, keyboard wars are famous in today’s age and online auctions are no exception.
Furthermore, always be mindful and wary of the items and the auctions that you place your bids on. Always set budgets and stay within the limits because if you spend more than you have, you will have to pay the amount in any case. In some cases, it is not even possible to cancel your bids.