The pandemic has ‘turbo-charged’ the online auction market with sales of art, antiques and property growing exponentially during the past year.
Global online-only sales at the three top auction houses surged by 524%, breaking the $1 billion (£711m) mark for the first time.
And punters are continuing to bid online in droves rather than travel to auction houses in person.
For first-timers, here are some simple steps to help create the best online bidding experience.
Put security first
Snapping up a bargain is an exciting prospect but it is essential to ensure you are engaging in an authentic auction and not getting caught up in a scam, particularly as the industry is unregulated.
Do your research and use an established auction house rather than a private sale. Find out if the auction house has its own website and a physical location. Read reviews and if you are unsure find their details on Companies House.
‘Some will be a member of a trade body, although this is voluntary in the UK. Most auctioneers don’t run online auctions from their own website, but use a company such as Easyliveauction.com or the-saleroom.com who have requirements a business must meet before being allowed to sell with them,’ explains antique dealer Stuart Turnbull of Forgotten Corner Finds.
Also, beware any seller who contacts you directly and offers to sell the item early ahead of the auction or attempts to induce you to purchase outside of the auction arrangement.
‘Be very, very suspicious of anyone or any auction house which does not have an online profile at all. This makes them hard to chase or search for and often indicates a scammer,’ adds auctioneer Gordon Brockman of True Values.
Other red flag warning signs include negative reviews, low star ratings, no terms and conditions and no phone number to call to ask questions.
Take your time
The best starting place is to watch live auctions online to get a feel for them and see how things operate. You will need to register first and may have to enter your credit card details and address.
You can register directly with an established auction house or use online aggregators such as Easy Live Auction.
To test the water you can bid in advance, which means you are not at risk of going over budget. When you are more confident you simply click on the bid button. But remember it is a legal contract so at this point you cannot change your mind.
Spend time learning the lingo. If something is described as Georgian-style it does not mean it is Georgian. Also terms like ‘as found’ mean there is likely to be a fault on the item.
Find the right lots
Auction houses will specialise in different items such as art, antiques or modern furniture.
Shop around and then spend time looking at the different lots. Sites like Bidspotter specialise in commercial auctions when companies are liquidating and this can be a great place to pick up office items.
Some lots will focus on particular products like books or collectables. And general sales can include house clearances and be more of a gamble because you don’t always know exactly what’s in a miscellaneous box.
Do your research
Compare the reserve price with similar items being sold on eBay and see what price things are selling for on other auction sites.
It is also important to scrutinise catalogue photos and descriptions making note of serial numbers and trademarks that can highlight the authenticity of a lot.
Zoom in on photos and check the tops and legs of furniture where damage is most likely to be.
You can also contact the auction to ask for a condition report and more photos or ask them to phone up and talk you around the showroom.
Set a budget
Always go into a sale knowing the maximum amount you are willing to spend on a lot and don’t go over budget.
Avoid getting carried away and keep in mind items that attract a lot of fervent bidding can end up selling for more than they are worth.
One way to ensure you don’t go over budget is to bid in advance, which takes the pressure off on the day.
Also be aware that the guide price can sometime be an over-estimate or under-estimate.
And if something does not sell it may be open to offer the next day, so you could still snap up a bargain.
When it comes to payment, never divulge your bank details and buy using a credit card for additional protection. Also make sure you use complex passwords for registration.
Understand the payment terms
Make sure you understand the terms and conditions of each auction house and the deadlines for payments.
Many auction houses will have additional costs such as a buyer’s premiumy, which is a commission on the item you buy. Together with VAT this could add an additional 15-25% on your spend.
Purchasing at auction usually requires full payment directly at the end of the auction, or within two to three days.
‘For property you’ll have to pay a deposit at time of winning a bid and a balance will have to be paid quickly, often with 48 hours. You must have the funds available and available quickly,’ says Gordon at True Valkues.
Depending on where the auction is based you may also need to factor in transport costs.
These might be hiring a van and paying for fuel or using a courier service like Shiply.
‘It costs nothing to get there so it doesn’t matter if you don’t win’
Creative Libby Brewster found bidding in online auctions boosted her confidence and mental health during the first lockdown.
She used online auctions to buy glassware to make candles from in her North London home.
‘It was way more efficient. I could multi-task at home and have it on in the background whilst working, and then tune in when it was my lot,’ says Libby.
She also enjoyed the thrill of bidding for miscellaneous job lots and not knowing exactly what she might find.
‘There can be some amazing things in there. It is a combination of a lucky dip and doing something sustainable, by repurposing the items. I got a Japanese-style tea set hidden in a lot, and I ended up making really nice candles with it that were really popular. It was just what I needed at that time,’ she says.
She also found being able to bid in advance made the process far more accessible and less intimidating.
‘If you don’t win anything it doesn’t matter as it hasn’t cost you anything to get there. It has given me confidence and been a good activity for my well being,’ adds Libby, who has gone on to co-found wellbeing toolkit Adbra.
Find out more at adbra.co.uk.
‘Don’t get carried away. Prices are going up’
Helen Gill, who bought Rise Hall in East Yorkshire from broadcaster and entrepreneur Sarah Beeny, has spent around £25,000 at online auctions, to furnish the 31-bedroom mansion.
She loves being able to access auctions across the country and has items couriered to her if she wins a bid.
‘It has opened up the auction market as you don’t have to travel and turn up in person. But so can everyone else so prices are going up.’
But there are still plenty of great deals to be found with Helen buying seven dining chairs for £65.
‘One of my best bargains was a general sale in Cumbria. I got an antique cabinet with a marble top for just £200 because it was not in an antiques sale,’ says Helen, who runs gourmet catering firm and wedding venue Dine.
But she believes it is important to keep things in perspective and not to get carried away.
‘I was bidding for a Murano chandelier and went up to £7,000.
‘The auction went mad and it sold for £8,000 plus the buyer’s premium. I ended up buying a brand new one from Murano for £6,500,’ she says.
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Get in touch at metrolifestyleteam@metro.co.uk.
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