Bidding at Antique Auctions

If you've never attended antique auctions, there are a few things you should know before you start bidding on the item that's caught your eye. Then, once you have an understanding of the general rules and an idea of what to expect, spend a few minutes watching before you dive into the action. Armed with a bit of research and a little know-how, you'll be well on your way to bringing home antiques and collectibles at a great price.

Before the Auction

Before you go to the auction, it's a good idea to find out as much as you can about what merchandise is being offered. This information will help you get a feel for the value of the items, which you'll need later when it comes time to bid. Many auction houses have Web site that highlight upcoming events, but even newspaper ads provide a hint of what you'll find.

Once you know what's being offered-furniture, collectibles or vintage jewelry, for example-use the Internet, your local library or relevant books you might have in your personal library to determine a range of value for the items. Print your notes or enter them into a small notebook to bring with you, along with pens, any additional reference materials you'd like to have and a calculator.

Bidding Numbers and Seating

It's always a good idea to plan to arrive early for an antiques auction. Your first task upon arrival is to obtain your bidding number. In order to receive one, you'll need to provide your name, address and telephone number. If you have a resale license, now is the time to provide that information. Be sure you bring a copy of your license; the auction house will want to see it and record your resale license number in its records.

Some auction houses require a deposit to obtain a bidding number. This deposit will be applied to any items you win or refunded to you if you leave the auction empty handed. Call the auction house prior to the auction to confirm whether it requires a deposit so you're not caught unawares when you arrive.

As soon as you have your bidding number, reserve a chair if possible. A quick walk through the room will probably reveal several chairs with name cards taped to them, indicating that someone has secured that seat. Try to get a seat in the center of a row as close to the auctioneer as you can manage to ensure the auctioneer can see you easily when you bid.

Auction Previews
Generally, auction houses offer a preview, which is allows you to view items that are being auctioned off prior to the start of the event. During the preview, you'll be able to examine the merchandise closely. Don't miss the preview if you can help it. Items are typically auctioned off in as-is condition, so the opportunity to inspect the merchandise can save you disappoint later.

Handle the merchandise. Look for scratches, dings, cracks, chips, gouges or any other flaw that lowers the value of the item. If you're interested in pottery or glass items, you'll be looking for minute chips and cracks, especially around the edges. Don't be afraid to pull out a magnifying glass or jeweler's loupe-you might discover imperfections that someone's attempted to disguise with filler or paint. When it comes to collectibles, they're often displayed in locked cases. Ask the auction staff for assistance when viewing these items.

Pay special attention to box lots, where several individual items are grouped to sell together. The auction house usually groups items in lots when the items, if sold individually, aren't worth a great deal but sold together can garner a higher price. Remember, auction houses don't know everything: it's possible you might find a hidden gem buried in a box lot.

Finally, take notes on the items you'll want to bid on. Each piece of merchandise or box lot is assigned a lot number. Enter the lot number into your notebook along with a short description of the item or items for later reference.

Buyer's Premiums, Taxes and Determining Your Bid
You've identified the item you want and having done your research, you know that the average list price for that item is about $150. You don't want to pay the average list price, you want a better deal. The most you're willing to pay is $100. You're ready to start bidding, aren't you?

Not so fast.

When you bid at an auction, you'll often pay a buyer's premium on top of your bid. Let's assume, in this case that the buyer's premium is 15%. If the most you want to pay is $100, deduct the $15 from that amount, which brings your bid amount down to $85. Next, you'll need to account for any state and local taxes that apply. Let's say that comes to 7.5%, which amounts to $6.38 in taxes.

Auction houses only deal in dollars, so round your taxes down to $6 and subtract it from your maximum bid of $85. This leaves you with a bid amount of $79. Auctions generally deal in five- or ten-dollar bid increments, so in this case you'll want to round your bid up to an even $80.

If you win the item, your bid, plus the buyer's premium and any applicable taxes should equal the maximum amount of money you're willing to pay for the item.

Note your maximum bid amount next to each lot number and description you've logged in your notebook to avoid to help ensure you don't pay more than you're willing to or more than the item is worth.

Bidding Against Dealers

You actually have an advantage when it comes to bidding against antiques dealers. First, the dealers may already know they won't get the item's list price during resale-they may only be able to sell that $150 item for $110.

Next, the dealer will need to determine the profit they need to make on the item and estimate how long it might take to sell the item and realize that profit. While the dealer won't have to pay tax on the item, they still have to pay the buyer's premium. Taken together, all of these factors may lead the dealer to set a maximum bid for the $150 item that comes in between $50 and $60 or less than your $80 maximum bid.

When Bidding Begins
As the bidding begins, watch the action for a few minutes to see how the auction is structured. You want to know what the bid increments are ($1, $5, $10, etc.) and whether the bid increments increase to higher amounts after bidding reaches a certain level, say from $10 to $20 once bidding reaches $100. This information will help keep you in your bidding range, so you don't unknowingly exceed your maximum bid.

When you're ready to bid, position your card high in the air with your bidding number facing the auctioneer. The easier you are to spot, the better the chances the auctioneer will see and continue to recognize you.

Refer to your notes regularly. You can't "un-bid". If you bid too high or bid on the wrong lot in error and win, you're responsible for paying for the item regardless of your intention.

Understanding Reserve Prices
Auction houses obtain merchandise in a variety of ways, and it's not uncommon that they auction off items on consignment or on behalf of individuals, families or even companies. In these cases, the auction house charges the seller a percentage of the winning bid for making the sale.

These items often carry a reserve price, which is the minimum dollar amount the owner will accept for an item. Auctioneers may or may not inform bidders that the item has a reserve price set or what the reserve price is. If the highest bid on the item doesn't meet the reserve price amount, the item remains unsold.

After You Win
When you win an item, you must pay for it before you leave the auction. Ask the auction house what the payment requirements are if the item is too large to take with you and requires later pickup. Typically, auction houses allow a few days for you to arrange pickup if necessary.