Online auctions are a great way to get anything from antique vases to houses, but it’s important to know what you’re doing. It can be easy to lose, even if you win the auction. To help you win in every way, here are 10 tips on how to bid and succeed.
- Find out the value.
Don’t trust the estimate. The estimate is just what the seller says something is worth. By no means should you trust this price for the item’s true value. The seller may inflate the price to make a bigger profit, which can cause the bid to spiral. Always know how much something is worth before bidding. - Research beforehand.
Get as much information about the auction website as you can. Online auctions are ubiquitous, and many of them are risky places to bid. Not every site is trustworthy. You want a reliable website, or you can lose quite a bit of money. - Set a limit.
Decide how much you’re willing to spend before you begin to bid. In the heat of the moment, you can easily offer much more than the item is worth or more than you intended to spend. To avoid spending too much, set a limit and stick to it. Ask yourself, “What is this item really worth to me?” - Look out for fees.
Fees can be added after you complete a sale on an online auction site. One such fee is the commission for the auction house, which is usually around 15–20%. There may even be a charge for you to use the auction website. Avoid these fees by researching the site and reading the terms of service carefully. - Have a quick internet connection.
The best tip for any online auction is to have a good internet connection. Without a strong and fast connection, you can experience lag. While this issue may seem minor, you can easily lose a bid due to even a few seconds of delay. Test your connection strength and speed with websites such as speedtest.net. - Don’t bid the minimum price.
The best way to win an auction is to bid much higher than the minimum required. Most people will try to offer the minimum, and it’s easy to lose an auction because you bid a lower price. By going up an extra $10 or $20, you’re more likely to make the winning bid. - Think about investment.
If you’re going to buy a house, and you plan to flip it, don’t just purchase it on a whim. If the house needs extensive repairs, can you afford it? While you may not be able to see the house, you should consider getting a detailed list of repairs needed. Having a strategy in advance will increase your profit. - Know that buying is a contract.
When you purchase something at an online auction, you are legally obligated to buy it. Often, this detail is hidden in the terms of service. While you are sometimes allowed to back out of an auction due to extenuating circumstances, you usually cannot. If what you’re bidding is high-priced, be sure you have the finances. - Watch the bid.
Never bid on something and leave the sale. Online auctions should be treated like live auctions. You would rarely leave an auction before the gavel comes down. Don’t assume you’ll win then leave the website. Remain on the site and watch to make sure no one outbids you. Often, people will sneak in and steal the highest bid position seconds before the auction is over. - Protect your identity.
Online auctions are dangerous because some people prey on bidders. They attempt to steal identities and use stolen credit card numbers. To avoid such theft, be skeptical of the website you bid at and only buy from people who have excellent ratings. Never purchase from someone without ratings or who makes you nervous.
