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.
It is possible to bid before the auction actually starts. This only happens with the seller's permission however. You can submit an offer to a seller for acceptance or rejection. If you offer is rejected, you can increase it and submit it again or wait for the auction to start. If your offer is accepted, the auctioneer notifies the registered bidders and cancels the public auction.
It is not unusual to require a bid deposit for an auction of real estate or valuable personal property. In order to eliminate casual bidding and those not qualified to bid at all, auctioneers can require bidders to put down a specific sum of money in order to get a bidder's number. If the high bid is accepted, the high bidder's deposit goes into an escrow account and the other deposits are returned or marked null and void.
You are not an active bidder until you have actually placed a bid. You will have to manually place your first bid. You can bid as often as you want, but you don't want to bid against yourself. Your first bids should be as low as possible. If there is still active bidding when the auction is scheduled to end, the time extends incrementally until there is no longer any active bidding.
You can sit in front of your computer or phone and bid manually if you want to. You can also put in a proxy bid. This is usually the maximum amount you are willing to pay for the property. Every time you are outbid, the system will automatically bid on your behalf, in the least increment allowed by an auctioneer, until it reaches 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.
Auctions are a lot of fun and a great way to purchase items below market value. It's important to be an informed bidder however. If you are not you might get caught up in the moment, and the competition, and end up paying way too much.
It is possible to bid before the auction actually starts. This only happens with the seller's permission however. You can submit an offer to a seller for acceptance or rejection. If you offer is rejected, you can increase it and submit it again or wait for the auction to start. If your offer is accepted, the auctioneer notifies the registered bidders and cancels the public auction.
It is not unusual to require a bid deposit for an auction of real estate or valuable personal property. In order to eliminate casual bidding and those not qualified to bid at all, auctioneers can require bidders to put down a specific sum of money in order to get a bidder's number. If the high bid is accepted, the high bidder's deposit goes into an escrow account and the other deposits are returned or marked null and void.
You are not an active bidder until you have actually placed a bid. You will have to manually place your first bid. You can bid as often as you want, but you don't want to bid against yourself. Your first bids should be as low as possible. If there is still active bidding when the auction is scheduled to end, the time extends incrementally until there is no longer any active bidding.
You can sit in front of your computer or phone and bid manually if you want to. You can also put in a proxy bid. This is usually the maximum amount you are willing to pay for the property. Every time you are outbid, the system will automatically bid on your behalf, in the least increment allowed by an auctioneer, until it reaches 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.
Auctions are a lot of fun and a great way to purchase items below market value. It's important to be an informed bidder however. If you are not you might get caught up in the moment, and the competition, and end up paying way too much.
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