Buying at Live Auctions for Resale on eBay and Other Online Venues
Are you an eBay seller who prefers to deal in collectible, antique or vintage items? Have you emptied your attic and basement? Are you tired of getting to garage and estate sales at 7:00 AM to find all the good stuff gone or that you're 20th in line for entry? If any of these apply to you, then this guide is for you.
Live Auctions
It's no secret that live auctions have existed for many decades. They are a major method of liquidation for businesses and personal estates. Most people can name at least one major auction house - Christie's and Southby's comes to mind. These are the types of places where Ross Perot sells the Magna Carta! There are many regional auction houses that also deal in higher end furniture, antiques, and historical collectibles. Butterfield's is an example. Both types of houses announce an auction months in advance and print a catalog for purchase and review. They set aside several days for preview of items available for sale. While fun to watch and follow, you won't find many bargains at either type of house.
Country/Local Auctions
What was once known as the "country auction" has gone mainstream. Every town of any size now has a local auction house. These houses used to advertise only in the newspapers and by word of mouth. The internet has given them much more reach. They can itemize everything they have and show as many photos as they wish. Several websites list auction houses and link to them directly or compile calendars giving listings of all auctions in a given radius on a given date. This has made many once obscure auctions very busy. There are still bargains to be had though if you do your homework and you plan to be in it for the long haul to snatch up the bargains as the crowd drifts home to bed!
How To Find Live Auctions
We use www.auctionzip.com to find live auctions in our area. This site covers many areas of the country. There are other similar sites that can be found using the major search engines. Many auction houses have their own sites and allow their listings to be published on these aggregated sites.
Established local auction houses that conduct sales on a set schedule do still tend to have yellow pages ads and to put small blurbs in the local newspapers and free circulars. Check the papers often. Auctions happen somewhere daily.
What to Do Once You've Found a Live Auction That Interests You
So, you've found an auction that's advertised some items of interest to you. Here's what you should do:
- Print the ad and mark things that are of interest to you. Pre-research items on eBay and elsewhere to determine potential value.
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If the auctioneer lists a preview day in his
ad, go. This is your chance to look at the items up close before the auction
when the crowd will be much smaller. Things at auctions are always sold "as
is". You'll want to check items out as closely as possible before you bid.
NOTE: Many country and local houses don't have a preview day. Instead, they
will open their doors an hour or two before start time for you to preview
the items which is why pre-research of advertised items is so important.
- Take your reading glasses and a magnifying glass with you.
- Take a note pad and pen. Write down the things you see that you are interested in bidding on. Remembering your research, determine how much you would be willing to bid. A good rule of thumb is to bid no more than 25% of resale value. On high end items of known value, you can probably set this figure at 50%.
- Take a small flashlight if you have an interest in larger items you may want to look under.
- Take a tape measure to get sizing on larger items you will have to transport or that are for "personal" use.
- Take a magnet if you specialize in metal items.
- Introduce yourself to any staff that is available and don't be afraid to ask questions. This will be your only real opportunity to do so.
- Check on the auction house payment policies at this time. Many country and local auction houses in my area take only cash or check with valid ID for payment. Some take credit cards. Some facilities charge a buyer's premium (a percentage above your winning bid), some do not. Some have a minimum bid, some do not. These things are typically posted but if they were not in the ad and you don't see them posted, ask.
-
Go the auction! If there was not a previous
day preview, obviously you should go as soon after "the doors open" as
possible. Here's what you do first:
- Check in at the cashier area. This is where you will be issued your bidder number. You'll likely need a government photo ID. The cashier will take down your name and address. You'll probably be asked to provide your telephone number. If you have a vendor's license/a state sales tax vendor ID or whatever it's called in your state, present a copy of this to the cashier and fill out the form provided. You won't pay sales tax for any auction items you purchase for re-sale. You do have a vendor's license don't you?
- Find a good seat, find a good seat, find a good seat! Ideally, find one somewhere that's in straight line view of the auctioneers stand. If you're hearing isn't so good, sit near the front. Local auctions are often weekly community social events in venues with bad acoustics. It can get very noisy. Sitting near the front also affords you a better view of box lots. What's in a box when you preview it, might not be in the same box when the bidding begins. At most country auctions, boxes don't have individual lot numbers (especially if everything is from one estate). Things get moved around as people look at them. Unscrupulous bidders will seed many items of interest and value into one box.
- Once, you find a good seat, MARK IT. Put a coat on it, a notebook, a small box...something. You'll want to look around more and chat with people you meet and before you know it all the seats will be filled. Also very important: Take a seat pad. Many country/local auction houses use metal folding chairs. You'll be sitting for SEVERAL hours.
- Chat with the people near you. Many will be "regulars" who will be a wealth of information about the auction house you're at, other local auctions, the best houses for items you're interested in and so forth. We have lots of "auction friends" at M.J.'s!
- Pay attention to the announcements at the beginning of the auction. The auctioneer often gives out dates and locations of future sales, information about the origins of the items in the current sale, pick-up/delivery information and the like.
-
The announcements are over and the auction
is finally under way - now what?
- Listen to the auctioneer through the first few items before you start bidding in any new to you auction house. Get used to the sound and tempo of his patter. Many are very fast (to keep the auction and the bids moving). You won't understand a new, speedy auctioneer right away but you will adjust. Also, auctioneers do tire and switch off during the course of a longer auction. Styles in the same auction house can vary widely.
- Pay attention to where they attempt to open bidding and where it typically works down to before bidders jump in. Later, as you start bidding on "your" items, you can use this to your advantage to come in a few dollars higher on more expensive items than where they would typically start. This will discourage other, more casual bidders.
- Watch how other bidders make their bids. Often, the first time you bid you will have to raise your hand or your number and wait to be recognized by the auctioneer or a ring/floor man. After your initial bid, usually a simple nod will suffice for your subsequent bids on that item.
- Watch for accepted ways to halve a bid increment. If an auctioneer goes from $20 to $25 for example, and you want to bid $22.50, you can single this different ways. Typically it is done by waggling the hand back and forth with the palm down or drawing a finger across your chest. The auctioneer has the option to accept or not accept this bid.
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Things to remember when bidding:
- Remember your top price. Don't over pay. You'll regret it later.
- Factor any buyer's premium into your top price figure. Some auction houses charge a buyer 5 or 10% above final gavel price.
- When you win a bid, write down what you got and what your bid was to include any buyer's premium. You'll want this information when you check out. It also helps you to stay on budget.
- Watch for the collectors in the room. They want "it" at any price and will pay top dollar to get it...but sometimes, in the bidding frenzy, their top dollar can be lower than where YOU take them and you end up with an item you can't re-sell for what you paid for it.
- Seasoned dealers will be at any advertised auction in abundance. Don't worry about these folks. They are focused on very specific items and will stick to strict value/budget guidelines. If you're in the market for the same items, you'll win some and the other dealers will win some. It's not the end of the world...at least that's what "M" constantly has to tell "J"...
- There are break points in the bidding process that many people won't cross. You'll win lots of auctions if you're willing to break a five, twenty, fifty, or $100 dollar bill on an item! Bid $6, bid $22.50 or $25 (different auction houses raise incremental bids differently), bid $55, or bid $110.
- Pay close attention when box lots come up for bid, especially early in an auction. This is for the previously mentioned "switcheroo" reasons but also because, typically, the first round or two of bids will be for a "choice" of individual items in the box lot and not for the entire contents of the box. As the auction progresses, this tends to shift.
- Often someone near you will bid against you on a box lot. As happens quite frequently to us, what each really wanted in the box differs. We "give away" (the horror!) items often and we are given items often. This fosters much good will. See how important chatting up your neighbors can be?!
- There will be times when someone will offer to buy something from you that you won, especially if you buy a lot of very mixed box lots. These side deals are, of course, frowned upon by management. If you're willing and the price is right, make this deal quietly without drawing any attention.
- Finally, be a good sport and get the ball rolling once in awhile. At our favorite auction house we've been known to raise our hands and get the bidding started on things we were only mildly interested in. It's wearing to watch an auctioneer start at $20 and get down to a dollar before anyone bids, only to see the item go for $25 or more! Help the poor fellows out and throw a couple or five fingers in the air occasionally even when you have no interest.
- When it's over - or when the last thing you were interested in sells - it's time to pay the piper. Get in line and wait your turn. Remind the cashier when you get to the window that you are tax exempt. The cashier will go through all of your tickets (most local houses have not joined the computer age but we're occasionally surprised) and calculate your total. Check this against your notes and check your tickets. Things do get mixed up sometimes.
So, whew, that's a lot. But, you ask, what do I buy? What has the most potential of making me money on eBay? Certainly, you should stick to the lines of business that you know best. We're "old paper" and book dealers and we primarily focus on those things at live auctions but we see lots of things that generate interest, sell inexpensively, and do well for resale. Some examples:
- Art
- Autographs
- Baskets (Longaberger is a huge auction seller in our area)
- Beads
- Beauty Items (Brush/Comb/Mirror Sets)
- Bibles
- Bottles (Medicine and Perfume)
- Breweriana (Advertising, Beer Lights, Bottles, Cans, Paper items, Swizzle Sticks...)
- Buttons
- Catalogs
- China
- Clocks
- Coins
- Comics
- Coca Cola Items
- Crystal
- Die cast/Metal Vehicles (Ertle, John Deer, Tonka)
- Disney Items
- Dolls
- Glassware
- Gold Jewelry
- Golf Gear
- Figurines
- Fishing Gear
- Halloween
- Hand Tools and Power Tools
- Hunting Gear
- Kitchenware
- Magazines
- Maps and Nautical Charts
- Marbles
- Military Items and War Memorabilia
- Movie Memorabilia
- Music Related (Instruments, Records/Albums, Sheet Music, OLD Band Tee Shirts...)
- Model Trains
- Non-fiction Books
- Older Costume Jewelry
- Pens
- Photographs
- Pocket knifes
- Postcards
- Posters
- Pottery
- Purses
- Railroad Items
- Radios (vintage)
- Shaving Items
- Stamps
- Smoking/Tobacco Related (Lighters, Cases, Advertising...)
- Sports Memorabilia (Cards, Equipment, Clothing, Programs, Pennants...)
- Toys
And, much, much more. Search eBay categories that are of interest to you for high value sellers or check out items that are frequently advertised for your local auction house and see if there is a market for them on eBay.
So there you have it! Get out there, getting bidding, and have fun. Good luck!