An Insider’s Guide to the parlor tricks auctions use to separate you & your money.
In my previous two articles on auction buying secrets, I have exposed the common ways that auction houses get the pigeons to part with their money and actually buy (some of) the junk they are selling. In part three, I’ll discuss some common practices that I have come to rely on that usually drastically increase my chances at paying less and getting more.
Tip #1: The Devil is in the Details
Every auction starts and ends with paperwork. 99% of all of the people at the auction never read the fine print at the bottom of the terms and conditions of bidding at registration time. These terms will lay out ALL of the costs that will be associated with bidding on and purchasing items at this particular auction. Extra expenses that most auctions include that will be tacked on over and above your winning bid prices can include but are not necessary limited to:
- Sales tax (This can be an additional 3 to 13%.)
- Buyers premium (Often 10% to 15% or more)
- Removal fees
- Loading fees
- Security Fees
Many of the details that will affect what you can afford to bid will be determined by what is in those terms and conditions. It’s vital that you think through these details before you even bid as they can greatly increase the cost of the equipment to much more than it’s worth.
Points to think about:
- Is the equipment being auctioned still standing/installed?
- If so, Who will be responsible for the removal?
- If it’s you, the buyer, what will it cost to get it removed?
- Is there a deadline for removal?
- If so – what are the penalties or consequences if it’s not removed within before the deadline?
- Will you lose ownership of the material?
- Will you be fined?
- Will it be removed for you at an exorbitant expense that you will be responsible for?
- Can you remove it yourself or must you use a pre-designated removal crew?
- If so – what will they charge?
- Do they have to be certified? Union?
- When, with whom, and how will you remove and/or load the equipment?
- What expenses will that entail?