Attending Auctions with Confidence: Before the Auction

By DoItYourself.com Staff

Auctions can be pretty intimidating, but they are exhilarating, a way to save big on antiques and everyday items, and if historic items are sold, almost like a trip to the museum.

Frankly, there is no reason to be weary about an auction. Unlike estate sales, auctions can be very civilized. Don't get me wrong, they're competitive, but in more of a psychological and strategic manner. I like to compare auctions to blackjack tables at a casino. Anyone can grab a seat and participate, but if you have no clue what you're doing, it will show, and the competition will take advantage of that. That is why, like with blackjack, you often see people watching and learning before they lay down that first chip and participate.

At an auction - I don't care if it is for cows or Picassos - you are competing against experienced dealers, collectors, and people who have been in the business and attending auctions for decades. The beginner will benefit from educating him/herself about antiques and value beforehand, and always exuding confidence. To help you out, below are the top ways to cut through the intimidation and attend an auction with knowledge and confidence.

Before the Auction

Know the terms and conditions of the auction. These are the legal terms that govern the auction, including acceptable forms of payment, terms, buyer's premiums, reserves, delivery (if available) and when items are to be removed from the premise after auction.

Always attend the preview. This is held usually the day prior to, and morning of the auction. It gives participants time to examine the antiques and items up for auction. The auction house has no obligation to list flaws, damage or marks in the item description, so it is up to you to investigate all antiques and items of interest. All sales are final at an auction, unless the auctioneer misrepresented something. You may attend the auction to bid, but the preview is the heart and sole of the auction. This is where you will gather information to later help you determine the market value and your maximum bid for each antique.

Examine every antique, collectible, and item you may potentially bid on. Do not feel rushed. Do not pass go. Take your time and inspect the condition, materials the item is made from, identification marks, wear, restoration/refinishing, etc. Study the wood and the craftsmanship, check out every piece of china in the set and not just the pieces on top, flip books and records over to make sure the back isn't flawed. At the preview, makes notes that you can use to perform further research to help determine the antiques' value. And don't forget to have fun!

Create an auction preview toolkit. Include a notepad for notes; a pencil; pocket-sized magnifying glass for checking coins, signatures, chips and cracks; a magnet to detect real bronze from fake bronze, which is often made of iron and will attract the magnet; a blacklight if you are searching for Vaseline glass; a small flashlight if looking for high quality jade (translucent with no cracks are the best); and a small pocket mirror to look under large items for damage and/or consignment numbers in chalk. Numerous consignment numbers on the underside indicate the piece has been up for auction without selling and can mean the item has issues.

Request and study the auction catalog. Normally, a catalog lists all the items up for auction. Sometimes it is free and sometimes the auction catalog will put you back a Happy Meal or two. It depends on the auction house. The catalog is an excellent reference tool when determining your maximum bid as it often lists estimates for each item.

What is an estimate and how accurate is it, you ask? Good question. An estimate is what the auction house thinks each antique and item will sell for. This is meant to serve as a guide for bidders and what I like to call the "get real factor," meaning don't be shocked when you don't win an antique estimated at $10,000 with a bid of only $500. Estimates are not "appraised values," they are simply guides of what the auction house feels an item will sell for. In fact, an estimate can be high only because the seller of that piece had a high reserve. On the other hand, a low estimate doesn't mean the antique has no value, it may mean only that the auction house doesn't recognize or have experience with that particular item.

Educate yourself about the antiques and items you will be bidding on. Reading specialized magazines pertaining to your antiques of choice, researching online auction prices, and attending offline auctions are the best ways to educate yourself on the market value of antiques. Subscribe to a specialty magazine for each area of your collection. For example, if you buy coins, art, and stamps then you should have a specialty magazine for each one. Attending auctions for entertainment and educational purposes only is another great way to learn and research prices. You don't always have to bid, you can just go there to observe and learn. Another way to research pricing is to visit antique stores and malls to see how much similar items are selling for. It is important to note that if you see a table selling for a certain price at an antique store, it was probably purchased for one-third to one-half as much and then marked up. So, don't expect to get the same amount for your item.

Never enter an auction without a set price for each item. Any professional auction attendee will tell you this. Determine a price for each item in advance. Write it down. Memorize it. Then stick to it. Otherwise you will get caught up in the emotion of the auction and pay too much. When you pay too much for an antique at auction, you tend to see it with new eyes. It is no longer that beautiful vase you hoped to get a good deal on, but rather that stinking overpriced piece of glass you wish you never bid on. Plus, that marks up your resale price and may exclude a good deal of potential buyers. The price you set depends on 1) what you can afford, 2) what you determined the value to be through your research and hence what a fair price would be, and 3) how many other items you would like to bid on. And don't forget to take into consideration the condition, quality, and rarity of the antique.

Register as soon as possible for the auction. Often you can do this the day before at the preview. By registering the day before, you the auction you can spend your time prior to the auction reviewing the items you plan to bid on, preparing mentally for the auction, and obtaining the most strategic seat.

Continue to Part 2: During and After the Auction >

© Doityourself.com 2006