Taking part in live auctions via the internet is not as complicated as it may sound. If you have already seen the action in regular auctions, it is highly likely that you are also familiar with how these things go. But on the other hand, those who are new to live online auctions may need to learn some of the basics which may come in handy as they bid.
Often, live auctions sell items as they are. If this is the case, it is vital for you to learn everything about the items you want to bid on before you commit. It is also important to remember that live auctions are synchronized with in-person live auctions so as the auction date approaches, all sellers and their personnel will be very busy. For that reason, it is imperative that you ask all the questions you must clarify the facts about the products you intend bidding on.
BP or Buyer’s Premium
A buyer’s premium is a commission or percentage that many auction houses or auctioneers add to the total amount of the winning bid. Often, it is a bid’s percentage that may range anywhere from 12% to 20%. On live webcast auctions, the buyer’s premium will be registered for each lot. Although some auctioneers and auction houses do not charge buyer’s premium, others may have varying premiums according to the item that is being auctioned.
Auction Catalog
There are many types of auction catalogs but in general, these catalogs are mainly registries or directories of listed items for auction. Depending on the type of item being auctioned, these can be listed as groups of items or individually. Each listing in an auction catalog is called a lot.
Getting Through Online Live Auctions
Getting through the confusions of online live auctions is often a lot easier when you start with the basics. If you have been to one of these events, you may have noticed that online catalogs often contain tons and tons of items for auction. It will be very laborious for auctioneers to upload comprehensive details for each lot which is why most auction sites often upload concise descriptions on their auction pages.
For example, you are planning to bid on an item of industrial equipment. You want to know specific details about the said equipment, but it is not listed on the auction catalog. When this happens, you need to contact the auctioneer for clarifications. It is prudent to just follow your instincts and put your common sense to work. Queries that you would usually make while shopping are an ideal starting point when asking inquiries about live auctions.
Determine the Condition of the Item
When doing a live auction, it is quite difficult to assess the item’s condition just by looking at its photos. But as a prospective bidder, you have the right to ask auctioneers to post additional photos of the item or make an inquiry about its condition.
This is very important especially if you are buying used industrial equipment. Although you are at a live auction, you may still want to see how the equipment was refurbished. This way, you will be able to know if it was clumsily repaired or the seller did a wonderful job in reconditioning it.
Read the Fine Print
It is important to read the fine print and know more about the premiums, deposits and general terms of the auction. Live webcast auctions are required to list the terms for each item for auction. Before you start bidding on an item, you need to read these terms so you can understand your obligations should you have the winning bid. Normally, live auctions require winning bids to pay a certain amount of premium. Some auction sites may charge a higher percentage so you will want to ensure you know what you need to pay in order to determine the amount of your bids.
Terms and policies often vary on each item for auction so make sure you read the fine print and contact your auctioneer or seller if you have any questions.
Remember your details
When you decide to join live auctions, you may first want to mark your calendar and your login details. This is obvious, but you would be surprised to know how many live bidders forget the date of the auction or get confused about the time. If you are not placing an absentee bid, you need to be present online once the live auction commences. Most auction websites often have countdown timers that show the remaining time before the actual auction. Once the auction is live, click on the specific button so you can join the auction.