Finding bargains at an auction sale
By Melanie Chambers • Bankrate.com

Don't get caught up in bidding
"Do I hear $100?" The yelling and fast-paced bidding of an auction can be quite intimidating, yet exciting. But if you're not careful, you can find yourself caught up in a bidding war.

To keep from frantically overspending, auctioneers suggest setting a limit for yourself ahead of time. "If you have a fixed price in your mind about what you'll pay, you won't get caught up in the fever of a bid and pay too much," says Gary Warner, co-owner and auctioneer for Warner's Auction in Colborne, Ont.

And if you don't have a clue what something is worth, ask the auctioneer or the people on the floor. "They're really a fountain of knowledge, and if they're willing to, they can tell you approximately how much the article will go for," says Hamilton. "Some of them are so proud of what they know and they can estimate almost bang on."

Another way to tame the auction-bidding beast is to make a bid on and item before the actual auction. A pre-bid allows someone who isn't present to make a bid beforehand. And if you have the highest bid during the auction, the item is yours.

Watch the pros
Another secret to getting a great deal: pay attention to the dealers. The dealers are those in the audience that own antique stores and are at the auction to buy stock.

"If you go one bid higher than the dealer, say $350, you're still getting a heck of a deal because if you bought it from him you'd be looking at $600," says Margie Carter.

But beware: dealers may be buying for private clients and may go higher than if they were only buying inventory for themselves. It's easier to spot a dealer at a small town auction, where locals know dealers, than in urban setting where dealers aren't as well-known or as obvious in a crowd.

Damaged goods and box lots
Hamilton once bought a teak coffee table that she later decided was too big. "I refinished it by rubbing the wood with steel wool and teak oil, took it back to the auction house and resold it at a profit." She suggests looking for furniture or other items that are easy to repair or that you could fix yourself and make some money off.

If you're seeking one-of-a-kind items, ask the auctioneer what's trendy or what people are collecting.

A fun purchase at an auction is called a box lot. After someone dies and their house is sold and the major contents are auctioned off, small articles that can't be sold individually such as books, plates, silverware or magazines are often stuffed into one box. It's like buying a surprise bag of goods.

"It's a bunch of knick-knacks, and you can usually get them for $4 to $5. We usually sell them throughout the auction," says Warner. You never know what you might find in a box; sometimes, they contain great finds.

The last word on auctions, don't forget about the auction house's cut. Auctions make their money from charging a fee that ranges between 10 and 20 percent of the total price. Before you make a bid, find out the fee first.

Melanie Chambers is a freelance writer in London, Ont.