Buying at auction is becoming more and more commonplace. With all the online sites dedicated to some form of the process, people are realizing they can get great deals while bidding competitively. There are strategies auctioneers use you should understand before entering one of the online Phoenix AZ auctions that are so popular.
With the seller's permission, some auctioneers allow bidders to pre-bid. This is really an offer that an interested party makes to the seller, through the auctioneer, prior to the auction. The seller may accept or reject the offer. If it's rejected, the bidder can submit another bid or wait until the actual auction starts. If the offer is accepted, the auction company will notify all registered bidders that the auction has been cancelled.
A bid deposit may be required. When real estate or a valuable personal property item is being offered, an auctioneer may require bidders to put up a deposit in order to bid. The funds are not actually deposited into any account. If the high bid is accepted, the winning bidder's deposit is put into escrow, and the other deposits are returned.
You have to place a bid online to start your bidding. Online auctions have beginning and ending times. If the bidding is still active when the auction is scheduled to end, the process is extended. It will keep automatically extending until such time as there is no active bidding. Once you have begun bidding, you will have to keep up with the highest bids if you want to continue to participate.
You can place a proxy bid, and the system will bid for you. A proxy bid is the highest amount you are willing to pay for an item. If you are outbid, the system will automatically bid for you, in the lowest increment the auctioneer allows, until it gets to your maximum.
The auction company may be bidding against you. It's not unusual for an auctioneer to place bids on behalf of a seller. They do this to increase the high bid in order to reach the seller's reserve price. Not all states require auctioneers to disclose this. The most reputable ones do. The auctioneer should stop bidding once the reserve price is met.
The reserve price is the amount that is acceptable to the seller. When the bidding reaches this amount, the auctioneer can declare any additional bidding absolute. This means the property will definitely sell to the highest bidder. The reserve price may, or may not, be advertised.
Bidding at auction is a lot of fun, and you can get get some great deals. Being an informed bidder will increase your chances of success. Once you know what you;re doing, and what the auctioneer is doing behind the scenes, you will become an experienced bidder who wins consistently.
With the seller's permission, some auctioneers allow bidders to pre-bid. This is really an offer that an interested party makes to the seller, through the auctioneer, prior to the auction. The seller may accept or reject the offer. If it's rejected, the bidder can submit another bid or wait until the actual auction starts. If the offer is accepted, the auction company will notify all registered bidders that the auction has been cancelled.
A bid deposit may be required. When real estate or a valuable personal property item is being offered, an auctioneer may require bidders to put up a deposit in order to bid. The funds are not actually deposited into any account. If the high bid is accepted, the winning bidder's deposit is put into escrow, and the other deposits are returned.
You have to place a bid online to start your bidding. Online auctions have beginning and ending times. If the bidding is still active when the auction is scheduled to end, the process is extended. It will keep automatically extending until such time as there is no active bidding. Once you have begun bidding, you will have to keep up with the highest bids if you want to continue to participate.
You can place a proxy bid, and the system will bid for you. A proxy bid is the highest amount you are willing to pay for an item. If you are outbid, the system will automatically bid for you, in the lowest increment the auctioneer allows, until it gets to your maximum.
The auction company may be bidding against you. It's not unusual for an auctioneer to place bids on behalf of a seller. They do this to increase the high bid in order to reach the seller's reserve price. Not all states require auctioneers to disclose this. The most reputable ones do. The auctioneer should stop bidding once the reserve price is met.
The reserve price is the amount that is acceptable to the seller. When the bidding reaches this amount, the auctioneer can declare any additional bidding absolute. This means the property will definitely sell to the highest bidder. The reserve price may, or may not, be advertised.
Bidding at auction is a lot of fun, and you can get get some great deals. Being an informed bidder will increase your chances of success. Once you know what you;re doing, and what the auctioneer is doing behind the scenes, you will become an experienced bidder who wins consistently.
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