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Online auctions can be a great way to find unique items and get them at a good price.
They have become increasingly popular, offering a convenient way to buy items from the comfort of your own home. However, winning an online auction can be challenging, as you’re competing against other bidders who may have their eyes set on the same item.
Consider the following tips to increase your chances of winning in an online auction:
Each auction house has its own rules and these differ from auction to auction. To avoid any surprises or penalties in the future, study and understand the rules.
” A violation of bidding rules can forfeit your chance at receiving an item,” according to Bid Equip.
As a bidder you are bound by the contract you sign with an auction house. “If you accept terms and conditions whether online or on paper, the bidder is bound by those terms (as long as they don’t infringe on consumer protection rights),” according to online auctions Africa.
You need to do your research on the auction house you plan on joining to find if it has a good reputation. There are a lot of scammers online, so it is important to do proper research on your auction company.
Research on how long the auction has been running and if it is part of an auction legislative body like the South African Institute of Auctioneers (SAIA).
It is also important to do thorough research about the items you want to bid on.
“Scrutinising the images and making note of serial numbers and trademarks can highlight the authenticity of a lot,” according to William George auctioneers.
Do not be afraid to ask questions about your product. Ask about its state of condition and how many handlers its had before. If you are not satisfied ask the auctioneers to give you a condition report.
Auctions have a wide array of products which can pick your interest. Find your niche and stick to it, this will save you from losing out and overspending on bids.
Some auctioneers like William George give you the option to wishlist items not part of your bidding niche.
“By understanding what you really want, you can set aside those lots for further research.
Spreading your interests across several lots may be hard to manage and this can become overwhelming.”
Understand the payment terms to avoid insufficient funds due to levies and taxes or missing the payment deadline. Also know what type of payment methods the auction company works with because some auction houses may not accept cash.
Action companies provide different options for deposit payments from credit cards, to EFT and cash deposits into their bank account.
Online payments are safer than cash because they provide the bidder with a legitimate proof of payment.
“Should you not buy anything at the auction, your deposit will be returned to you according to the timelines laid out in the terms and conditions. If you have successfully bought something at the auction, your deposit is first deducted from his amount and then you are invoiced for the outstanding balance or refunded should the purchase be less than the item, charges and VAT,” according to online auctions Africa.
Safe is always better than sorry. Have discipline with your budget and only bid on what you came for. Participating in an auction can accelerate your adrenaline rush leading you to biting off more than you can chew.
“If you go over your budget, you may experience buyer’s remorse,” says Backes Auctioneers.
According to Graham Auctions, some companies charge you a fee for allowing you to bid as much as you can upfront. “This option is helpful when you don’t know if your estimate is high or low for an auction item,” they said.
Add to your budget premiums and taxes for your overall bid as this will increase your payment fees.
Using automated bidding will put you at an advantage.
“Custom bidding allows you to keep bidding even if you’re away and not on your computer,” according to Backed Auctioneers.
This form of bidding sets a sort of ceiling on your bids, this will allow you to bid the most but also keep you within budget. It will also decrease your chances of being outbid.
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