How to Bone Up on Bidding So As Not to Lose Your Shirt

With a little knowledge and some preparation, you can enjoy the excitement of an auction without bidding unwisely:

Finding an auction

Watch for flyers and advertisements announcing upcoming auctions. Check newspaper classified sections under “Merchandise” or “Auctions.” Call auction houses in your area to find out what’s coming up; some will add you to their mailing list. Ask around, especially among others you meet at auctions.

Know your merchandise

When you find items that interest you, get as much information on them as you can.

If it’s antiques you’re looking for, you may want to check out retail antique stores in the area to get an idea of market prices. Price references, such as Kovel’s Price Guide or the Lyle Official Antiques Review, are a good source of information, as are periodicals such as Art & Antiques or Inside Collector.

Most experts say that experience is the best teacher, and, although some people may want to attend an auction or two before they start bidding, some prefer to get into the action right away.

Most auctions give out a printed catalogue of the merchandise to be sold, with each item numbered according to the order in which it will be auctioned. Use the catalogue to make notes on items you are interested in and, as the proceedings unfold, record the winning bid for each article. In that way, you create your own guidebook for future auctions.

Look before you leap

All auctions have previews of the goods they are going to be selling. Although some high-ticket items or fine art may be displayed for days ahead of time, the previews for most auctions take place in the two or three hours before the auction starts.

Since auctioned merchandise is usually sold “as is,” it is important that you inspect any items you are considering buying. Things can look a lot different up close than they do from the back of the auction hall.

Ready for action

If you’re going to be bidding, you must first register by giving your name, address and phone number and showing some identification, such as a driver’s license.

Some auction houses require a deposit when you sign up. Policies on deposits and payments vary from place to place; some accept cash only, some take personal checks, some honor credit cards. Make sure you understand which applies before you commit to a purchase.

When you register, you receive a bidder’s number and something with which to signal your bid, usually a hand-numbered poster card, or in some cases, a numbered paddle.

Sometimes a buyers “premium” or surcharge--usually 10%--is added to a successful bid, meaning that, if you bid $100 for an item, you can count on paying $110.

Sales taxes also apply.

The highest bidder

Since auctioneers always try to get a high opening bid, it is usually best not to open at the first suggestion.

The auctioneer will usually vary the rate of rise in the bidding; it can be $10 for a low-ticket item, as in “I’ve got $50, who’ll give me $60.”

On high-ticket items it may rise by $100 or more. (“I’ve got $1,500, who’ll give me 16.”) Make sure you know the amount you’re bidding when you raise your card.