How to Bid at Auctions

If you would like to attend an auction, but you feel a little intimidated by auction scenes in movies and on television, don't -- because there's really nothing to be nervous about. Learning how to bid at auctions isn't quite as exciting as the fictionalized action created by Hollywood, but it can be fun when you find something at a sale worth buying.

Before the auction

If you would like to buy something, but you don't have a particular item in mind, familiarize yourself with the auction catalogue. Minimum prices, photos and a description of all items that will come under the hammer will be listed in the catalogue. Make a note of the lot numbers of any items on which you want to place a bid.

Before the auction starts, you should inspect the items that interest you. Most auction houses have viewing dates during which the public can take a closer look at the various goods before the actual action date. If you can't arrange an inspection on that date, show up early on the day of the auction and the items will be displayed before bidding begins.

On the day of the auction

Register by filling out the form at the auction house. Be prepared to show at least one piece of photo identification. Most people use their driver's license.

Your name, address and phone number will be required, and you may be asked to give a refundable deposit. If you are a reseller of goods, you will need to give your license number so that any tax paid on items can be refunded to you.

How to bid at auctions

After registration, you will receive a paddle with a number on it. When the item of your choice is presented, and the auctioneer asks for an opening bid, raise your paddle. If the opening bid is $25, by raising your paddle you have just agreed to pay $25 for that item.

If someone else is also interested in that item, he or she will raise her paddle and as such increase the bid by 10 percent. If you are willing to spend more, raise your paddle again and the auctioneer will announce that your bid is higher than the previous one. If there are other bidders for the item you want, bidding will continue until the last paddle is raised at the highest amount.

When nobody challenges your bid, the auctioneer will call "Going once, going twice, sold for $100 to bidder number 24!" After slamming his gavel, he will add a short description of your person. For instance he might say, "The lady in the second row wearing the red jacket."

If you don't want to go through the motions of bidding by 10 percent at a time, you can raise your paddle and call out a bid. This is usually done to give the price of the item a significant boost. If the last bid stands at $50 and you really want that item, you can let the price jump to $100.

Did you bid successfully?

Keep in mind that auction houses don't own the items they're selling. Some sellers may have set a minimum price, also known as a reserve, for certain items. If your bid does not meet that price, the sale could be cancelled.

Hidden costs

Note that auction houses work with a buyer's premium. Some charge as little as 10 percent, while others may charge as much as 25 percent. This means that if you buy an item for $100, you will have to pay a total of $110 or $125.

Knowing how to bid at auctions can turn into a fun experience. Just be sure that you don't move your paddle if you don't want to bid. Using your paddle to swat at a fly may turn out to be a costly experience.