Hints and Tips - Traditional Sales

When we refer to "traditional auctions", we mean those sales where the bidding process is conducted in person by an auctioneer, rather than controlled by a website or online computer program.

Even though internet auctions are becoming ever more popular, many types of goods do not lend themselves well to being sold online, unless a visual inspection is carried out prior to any bidding. For example, second-hand plant, machinery, equipment, stocks and vehicles really need to be viewed "in the flesh" before a condition assessment and a realistic valuation can be made. Close-up photographs and lengthy descriptions may be very useful when deciding whether an item is of interest, but are no substitute for a detailed visual inspection when deciding to actually make a purchase and how much to bid.

Traditional auctions, therefore, continue to provide the bargain hunter with plenty of great money saving opportunities.

No matter what goods you buy, by whatever method, there will always be an element of risk and pitfalls to be wary of. Because items for sale by auction are generally sold "as seen" and without written guarantees, these risks can be higher. Always bear in mind though, that this must be weighed against the fact that the potential rewards are much higher too!

So, for those who are new to auctions, we have set out below some basic hints, tips and guidelines that should help you avoid making costly mistakes and make good profits (or savings) from your auction trading.

• Obtain a catalogue in advance, especially if you are travelling a considerable distance to the auction. You can then be reasonably confident that the goods for sale are of interest to you.

• Auctions instructed by Customs & Excise and the Inland Revenue are often subject to cancellation at short notice and it is worth the cost of a phone call on the morning of sale to confirm that the sale is to go ahead

• Thoroughly inspect the items you intend to bid for. This might appear to be stating the obvious, however, because most items for sale at auction are sold with no guarantee, the golden rule is "Buyer Beware". Often, you will be able to view the goods a day or two prior to sale day, whilst at other sales, viewing is on the day of sale only. If this is the case, allow plenty of time to locate and inspect the items prior to the sale. For security reasons, some auction houses cease further viewing at the commencement of the sale

• If in doubt about the condition, safety or legality of an item, do not buy. If an item is sold "with faults", can it be easily repaired?

• Beware of goods which have been stripped for spares before being entered in the sale! Sometimes it is possible to test the goods prior to the auction - ask the auctioneer. Some vehicle auctioneers, for instance British Car Auctions, allow up to one hour after purchase in which to return the vehicle if any major defects are found

• Set yourself a price limit before bidding and stick to it. It can be all too easy to get carried away with the excitement of the sale, and end up paying over the odds. Consider what the item would cost new, and how much it would cost if bought from a dealer with a guarantee

• Check for any changes to the catalogue and listen to any alterations the auctioneer may make verbally prior to auctioning off each lot

• If you bid for the wrong lot, tell the auctioneer immediately. Strictly speaking, once you have made a successful bid for a lot, you have a legal obligation to pay for it. However, in the case of genuine mistakes, the auctioneer will often try to re-sell the item, although you may have to make up any shortfall in the price

• Don't forget the additional costs. Many auctioneers charge a "Buyers Premium" on top of the hammer price and V.A.T. will normally be payable (look under the conditions of sale in the catalogue)

• Note: The distinction between the "traditional" and "online" auction has now become somewhat hazy, as many auctioneers now accept online and telephone bids at their sales as in the case of "Webcast" auctions. There may also be "proxy bids" (confidential maximum bids for items) left with the auctioneer, by persons who are unable to attend but still wish to bid up to a certain limit. Therefore, by no means all the potential buyers will be in attendance at the traditional auction sale. Auction Guide