Does it cost anything to register for an auction? One of the main questions asked a lot by first-time bidders is about our registration process. Most auctions require a registration and a form of deposit to obtain a bidding number. By registering as a bidder, the bidding quality of the auction is improved, creating a more comfortable environment for buyers. The key word here is deposit. If you are unsuccessful with your bidding and do not make a purchase, the deposit should be immediately refunded.
As a bidder, how should you prepare for an auction? One of the biggest mistakes buyers make prior to attending an auction is not doing their research on the items being sold. Determine new and used costs on the items you are interested in purchasing and compare it to the item for sale. Test and inspect the condition of the equipment during the auction preview and decide how much you are willing to bid.
and can be disappointed if they go over their maximum bid.
What is the buyer's premium? Auction companies typically utilize a buyer’s premium as part of their commission structure. This percentage is added to the buyer’s total purchase and is taxable. Be aware of the buyer’s premium and figure that into your bidding.
Will I pay sales tax? Auction companies are required to collect sales tax on your total purchase. If you plan to purchase under resale, be prepared to provide and complete appropriate sales tax forms.
If you are new to auctions, it's important to be comfortable with the bidding process. Listen to the auctioneer and make sure you understand the bidding increments so you can be comfortable with the pace of the sale. Auctions are a great way to save money and to be in a fun, fast-paced purchasing environment.
Daniel Clar is an industrial equipment auctioneer and appraiser based in Northern California. He provides liquidation and appraisal services through out the Western United States.