Monday, December 14th, 2020
Imagine being caught up in the bidding at an auction and suddenly, you are bidding over your budget. You may take a step back and quickly wonder if you can reverse your last bid. This is one reason why it is important to understand the rules, regulations, and even laws surrounding auctions before you bid.
How auctions work
In an auction, a seller works with an auctioneer (or the seller is the auction house) to sell items to bidders. Bidders can preview items before the auction and then must register with the auction house. The auctioneer will start the process with what they believe is a good starting amount, and then work to make that price higher. The highest bidder will win the item or lot of items.
Withdrawing a bid
In many situations, you can withdraw a bid. This is typically possible only before the auctioneer has announced an item as sold. This doesn’t retract any other bids, however, so the auction will continue with the highest bids. Once you hear “Sold!” then the highest bidder and auctioneer have entered into a contract.
If the winning bidder does not pay in full, they may be responsible for any damages to the seller. They may also have to pay any remaining money if the item is resold for a cheaper price.
How to avoid withdrawing a bid
It is best to avoid this circ*mstance in the first place. Doing so will help you avoid any extra fees and protect your status as a bidder. Following these tips can help keep your track.
- Don’t get caught up in a bidding war or get intimidated by other bidders.
- Create a budget and stick to it. It can help to bring cash only.
- Arrive early so you can inspect all of the items.
- Do research before the event by looking at the auction catalog. This will help you choose what you want to bid on and how much you will pay for each item.
- Familiarize yourself with the auction house rules. These might differ from one establishment to another.
- Know the difference between online and in-person auctions (and their withdrawal rules).
Looking for auctions in Texas?
If you are interested in attending an auction in Texas, High Plains Auctioneers can help! We hold farm equipment, used vehicle, estate, property, and antique auctions both in-person and online. You can call us at (806) 244-6776 to learn more about policies and check out our Upcoming Auctions to see what we will have available.
