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On eBay you run your auction for a specific duration. Currently, the options are 1, 3, 5, 7 or 10 days.
But which duration is best for your auction?
In this article, I'll give you some pointers designed to assist in answering the question.
You might wonder why you would ever wish to have less than the maximum exposure i.e. 10 days? Surely running your auction for the longest time would give bidders more opportunity, and therefore a higher sale price would result? Certainly eBay.com would appear to think so, as they currently charge a fee of $0.20 for the privilege of operating a 10 day auction.
However, if you have a very popular item or if you have many identical items to sell, it may pay you to have a shorter auction duration. Also, it pays to consider the end point of your auction very carefully. In addition, if you are running a Fixed Price auction, there's a little trick you can employ to give you extra exposure.
So, let's review the elements to consider in the setting of your auction duration.
a) Start/end day of auction
In my experience, for most categories, the weekend is by far the busiest viewing period on eBay. I would estimate that around 50% of views of my auctions take place on Saturday and Sunday. In setting auction duration, therefore, the weekend peak could be important to your success.
If you can arrange to end an auction on Sunday night, you get the benefit of those who wait until the end of the auction to bid, plus the enhanced viewing traffic numbers which appear during the weekend.
This means if you're posting an auction on Tuesday night, a 5 day auction could be good.
Having said that the weekend is the busiest for most categories, some could benefit from a midweek closing date. Items in this category would include those in which goods are offered for business users.
If your item is targeted at businesses, you want people to bid for your item while they are at work. In these instances, make sure your auction covers working days, and concludes during work time. It has also been found that office equipment and supplies sell well in the morning.
Be conscious of the time when you post your auction, as this is the exact time it will finish a number of days ahead. There's potentially a great deal of difference between an auction closing at 10 o'clock on Sunday night, and 10 o'clock on Sunday morning. If you can pitch your auction to be the former, you could benefit significantly from those extra weekend viewers. (Note the section on Time Zones later.)
b) Known popularity of the item
If you know your item is very popular, and your past experience shows that you will always sell at or more than the price you want, even outside of normal peak periods, then a 1 or 3 day auction could be appropriate. The benefit of a 1 or 3 day sale is that you can sell more items, more quickly.
c) Awareness of eBay sort facilities after searching
Whenever eBay's search is used by an eBayer, the default is that it returns auction titles in the order of how long auctions have left to run. Auctions which have minutes, or seconds to run, will appear first in the returned list. Auctions which have 9+ days to run will be at the end. And the list may run to many, many pages.
Experience has shown that eBayers tend to look only at one or two pages in returned lists. This means it is important you get your auction onto these first two pages at some point in its life - another reason why a 1 or 3 day auction might be better than a 7 or 10 day duration.
Be aware too that a high proportion of bidding activity takes place towards the end of an auction. This is natural. Buyers are on the lookout for bargains. If they can nip in with a bid at the end of the auction, they might get the item at a good price and there may not be time for others to top their bid. (Buyers can also use "sniping" software, designed to place a bid at the latest possible time on auctions which are of interest to them.)
However, the searcher can easily re-order the returned titles list. A popular option is to re-order the list into "newly listed" sequence. The top of the list will now show auctions which have been newly added to eBay. This is why there is sometimes a blip of bidding activity at the beginning of an auction as well as at the end.
d) Time Zones
eBay's default is to commence your auction from the time you submit it. As you know, this means it will terminate at that exact time, the number of days ahead that you select as the duration. However, if you're offering your item internationally you should give consideration to the time zone you're aiming for in terms of auction finish point.
For example, in the USA half of all eBay members reside in the Eastern Time Zone. So an auction ending at 10pm Pacific Time is fine for west coast eBay members, but over on the east coast this is 1am! So you're effectively losing around 50% of potential bidders at a critical point in your auction.
eBay does provide an option whereby you can schedule your auction to commence at a specific time (and on another day). In fact you can set your auction to start at any time and day up to 21 days ahead. This means you can commence your auction according to the timing you believe will attract the most viewers. There is a small fee for using this feature.
This is a useful capability if you want to create your listings in advance, and then have them released onto eBay in a phased sequence.
e) Fixed Price auctions - Single Item
I mentioned a little trick earlier. Well, here it is. With a Fixed Price auction for a single item you could consider managing your auction duration dynamically. You need to be monitoring your auctions closely i.e. throughout the day, to undertake this technique.
When bidders do a search on eBay, you know the auctions with the least amount of time left appear at the top of the returned list. So it is advantageous to keep the remaining time on your auction as short as possible. This is a way in which you get four bites of that cherry for a single listing fee.
1. Start your Fixed Price single item auction off with 1 day duration. Wait for someone to buy.
2. When the auction has just over 12 hours left, go in to the auction and revise the auction duration to 3 days. Yes, you can do this - as long as there is at least 12 hours left. Wait for someone to buy.
3. When the auction has just over 12 hours left, go in to the auction and revise the auction duration to 5 days. Wait for someone to buy.
4. When the auction has just over 12 hours left, go in to the auction and revise the auction duration to 7 days. Wait for someone to buy.
5. When the auction has just over 12 hours left, go in to the auction and revise the auction duration to 10 days. (Don't forget this will cost you a small fee on eBay.com) Wait for someone to buy.
6. The auction concludes naturally.
This might look complicated, but it isn't really once you get the hang of it. Of course, at any point during the above process someone could buy your item and your auction closes automatically. If you have another of the same or similar item to sell, you can re-list it.
f) Fixed Price auctions - Multiple Items
With a Fixed Price auction for multiple items, I would recommend you set the auction duration to the maximum - 10 days, or 7 days if you're not prepared to absorb the extra fee on eBay.com.
When you have multiple items it is not advisable to use the ploy described above for Fixed Price single item auctions. This is because as soon as you receive a bid (in this case it would be a Fixed Price sale), you are unable to modify the auction duration even though you may have many of the multiple items still to sell.
If you sell all your items within your chosen 7 or 10 days, then the auction closes automatically anyway.
g) Value Based Formula
If you are happier using a value based formula in setting your auction duration, here is my rule of thumb for items that I have not tried to sell before:
Min Bid amounts Set auction duration to
£5 - £25 ($10 - $50) 5 days
£25 - £100 ($50 - $200) 7 days
Over £100 (Over $200) 7 - 10 days
If you're selling items which from experience you know will definitely be bought at acceptable prices, then you can reduce the duration.
I hope this outline of selecting the best auction duration proves useful to you.
Brian McGregor is an eBay and internet entrepreneur. He has published the eBay Auction Newsletter for over four years. It has over 42,000 subscribers,and you can subscribe free here.
As we enter a new year a lot of people are still wondering what is going to happen in the real estate realm. How soon will we recover? A year or longer? Because of these issues and shear volume of distressed properties, a lot of people are claiming that this year 2010 is the year of the real estate auction. We tend to agree.
That said there are some things you want to know before flinging yourself out there and possibly getting yourself in trouble at an online auction.
So we've devised a list of 8 things you want to do to prepare yourself for an online real estate auction.
#1 Contact the Auctioneer
Ask the auction company to supply you with information, over the telephone or email concerning specific properties as well as the online auction process itself.One of the things you want to do right away is to get in contact with the people that you'll be dealing with for this online auction. Who is that going to be mostly? The auction company! Visit their site and I highly recommend going ahead and calling them them. Do some research about the auction company.
* Do they have a good reputation?
* Do they close the properties they 'sell'?
Twitter, Facebook and other social media outlets are great for this type of stuff. Ask around - odds are you'll find someone who has done business with them in the past. One thing to keep in mind though. With competitive bidding there ARE sore losers out there. So if you get feedback make sure it is from someone you think is reputable themselves!
#2 Do Your "Homework"
Find out as much as you can about the property. Check first online. This is an online auction the auction company will try and put as much information online as possible. Call if you still have questions or can't find something.This one is really a no brainer. You're going to be spending thousands if not hundreds of thosands of dollars on this property or properties. Check up on it. Go down to the courthouse. A lot of information can now be found online, but you need to be motivated to research the property or you probably shouldn't be bidding on it.
#3 Inspect the Property
Take full advantage of any inspections conducted by the auction company or schedule a private site viewing. This will allow you or your representative to see what you are bidding on and help determine value and desirability allowing you to bid with confidence.This is one that you might think is another no brainer but you'd be surprised how many people buy 'in the dark'. This is not recommended. Most auction companies sell 'as is' meaning you're not going to have an inspection period post-auction. You'd better know what you're getting up front and bid accordingly. Auction companies should do their best to disclose any issues or problems with the property ahead of time because they don't want trouble during the closing process. That said it is up to you to read these disclosures and go take a look at the property yourself!
#4 Prequalify Yourself
This increases your comfort level by knowing your mortgage qualifications. This is especially important in today's economic environment. Even before you decide on a property to buy, you should prequalify yourself through your banker. There is generally never a mortgage contingency in a real estate auction. It is best to know you can pay for the property before you bid.In our current economic climate this one is important. Don't make the mistake of winning something at auction only to find that the bank doesn't want to work with you. At best this might only delay the closing if you have to ask for an extension. At worst the whole deal can fall apart and you have to give up your earnest money. Ouch!
#5 Participate in an Online Auction
Similar to the on location auction. Check to see if the auction company is running another online auction you can participate in. Get signed up and registered for that event and attend and observe one or more auctions online and familiarize yourself with the process before you bid. The online auction process can be confusing at first, so knowing what to expect is important, when your time comes to buy.
A lot of online auction companies work in a very similar manner to eBay - even if selling multimillion dollar homes. The important part is finding out how they are DIFFERENT.This one is more about your comfort more than anything else. How does the system really work? What fields do you have to fill out before placing bids on the system? What are the quirks in the system that might delay you from placing a bid when time is tight? Surprises are not fun - especially when you've committed yourself to a large six figure bid.
#6 Plan Your Bid Strategy
Determine your bid limit after examination of the property and all available information. Don't be afraid to bid early. Most other bidders will be willing to pay just as much as you. The one who bids the number first, wins that day.So you've seen the property, you know how much you're pre-qualified for, and you know who you're dealing with and how their system works. Now it is time to determine how you're going to bid. Some people like to jump out in front and try and scare off the other bidders by showing them how much you want this particular property and some people like to casually come over the top of anyone else that bids. The important part is that you know how you're going to bid and you know how much you're going to bid to and that you're comfortable with that if you don't win the property you want.
#7 Register To Bid
Most online auction companies require some sort of registration process before you're allowed to bid. Some require identity verification by some method. Find out what this is. Call and make sure you're comfortable with the amount of information you're providing and what the auction company will be using this information for. Remember: Due to the anonymous nature of the internet they are just as wary of you as you are of them. Seek advice and ask questions from other people or brokers who have participated in an online auction and get information about this Auction company.Not much to say here other than get signed up ahead of time. No one wants to miss out of a real estate opportunity because they tried to register too late. If you rush this you'll feel rushed for the whole process and you're putting yourself at a disadvantage from the start. Just take the time and get registered early on so it is one less thing you have to worry about.Upon completion of registration you will generally receive a bid number, terms of the sale, and other important auction day information (again check the auction company for exact details).
#8 Check for Required Deposits
If you are the successful high bidder at an online auction, you will be normally be required to affirm your bid with a digital signature or email reply and some sort of deposit. Check with the auction company for exact details on what type of money deposits are allowed and accepted (Generally a certified or bank check are required) and how to get that money to the company since it was an online auction.This one is all about being able to perform after you've won a property. This step will set the tone of the entire closing process. The auction company wants you to purchase the property but they don't know your financial situation. The auction company is trying to determine if you're going to follow through with your bid. You have to make sure that you follow directions after the auction to show them that you're a serious buyer. If it seems like you're not going to meet the post-auction requirements they will sell the property to someone else. Don't lose your opportunity to buy your dream house because you didn't follow the post-auction instructions.
REF: LA Times - Year of the Auction
Auctions can be stressful for the uninitiated. Online auctions can be confusing and stressful! Follow these steps and you'll be able to bid with confidence and have an enjoyable auction experience. Good luck bidding!
Carlton Jones
Rowell Auctions, Inc. Real Estate Auction | Land Auction | Online
With many people struggling to make ends meet and TV adverts with catchy jingles tempting you to sell your car for quick cash, it can seem appealing. Your car (next to your house) is probably your most expensive piece of equity and with this in mind, it can be tempting to sell it, purchase a cheaper make or model and pocket the difference.
Car auctions, whether they be physical or on-line, can be a good way of selling your car, safe in the knowledge that an experienced auctioneer has yours, and the auction house's, best interest at heart. You may think that these things do not always necessarily go hand in hand but bear in mind that the auction house will take a percentage of the purchase price (buyers fee) as commission so it is in their interest to get you as much money as possible!
So, let's start with the basics:
What is a car auction?
Car auctions have a long history within the automotive industry with many different types of business using them to either sell excess stock or purchase new stock for resale.
They are extremely popular in the USA and Japan and are gaining popularity in the UK where they are no longer seen as dirty places. This is mainly thanks to the industry making a concerted effort to change the reputation of the sector and make it more appealing to all people, not just those 'in the trade'.
Car auctions sell cars, commercial vehicles, motorcycles, plant equipment, and some of them will also sell large goods vehicles and possibly caravans and motor homes.
Auction houses do not own the vehicles which they sell. They merely act as a shop front for many different types of seller. These can include leasing companies, fleet management companies, dealer groups, banks and financial institutions, governmental bodies, police, and of course private individuals.
Let's look at each of these different sellers more closely:
Leasing Companies
Leasing companies rent vehicles to companies or private drivers for a set period of time (sometimes as little as 1 year) so the vehicles put into auction are usually young models with a good mileage and because the cars are usually leased from new, they may have only had one person driving them whilst going to a meeting twice a week! When the lease or rental period ends, leasing companies will enter their old stock into auction as their customers are more interested in leasing brand new vehicles. These companies are usually owned by banks or financial institutions.
Fleet Management Companies
These are similar to Leasing companies in that they lease their stock to organisations but differ in that they will supply their customers with a whole fleet of cars and manage that fleet on behalf of their client. Again, when the rental period for the fleet ends, the companies wish to take advantage of the capital wrapped up in their stock in order to replace it with new models.
Dealer Groups
If you have ever part exchanged your old car at one of the large, glass fronted dealers or showrooms, chances are it has subsequently been put into auction and sold. Dealer groups will also enter old or unsold stock (known as overage) from their forecourts in order to keep their showrooms looking fresh with the latest that the manufacturer(s) have to offer. Of course, buying a vehicle at auction which has been entered by a dealer group can be a bit riskier than the leasing or fleet companies as if someone has part exchanged their old car, you have to ask yourself why did they do it, what sort of person where they, how well did they keep it and how many previous keepers has it had?
Banks and financial institutions
Banks and financial institutions can fall into fleet and leasing companies as many of them have these elements within their respective corporate families and follow the same trends. However, banks can also enter cars into auctions that have been repossessed from their customers after defaults on loan or mortgage repayments. Obviously a car itself is of little or no interest to a bank, they are only interested in the value and the money which can be made from it.
Governmental bodies
Government bodies will run fleets of cars for their staff and key executives and will update this fleet on a regular basis with the old stock being put into auction. Separate Government departments will also enter a wide range of vehicles at auction from ex-defence Land Rovers or staff cars, to lawn mowers and diggers used on the local playing fields or in the local cemetery! Local Government may also enter cars into auction that have been seized by bailiffs follow non payment of bills such as Council Tax (depending on the Local Authority in question, these can be quite high end models).
Police
Police forces will auction vehicles seized from convicted criminals to either compensate victims, break up an illegal estate or regain public money gained fraudulently. The police also auction a variety of other items seized for similar reasons and may do this through an auction house or by holding their own property auctions. As well as these lots, all police forces will also run a fleet of undercover or unmarked vehicles and these will need to be constantly updated, with the old stock being put into auction to raise funds for the force.
Private individuals
This is the category of seller that we are really interested in. Private sellers can enter and purchase cars from auction and if their car is not sold first time round, they can tell the auction house to keep putting it in until they receive an acceptable bid. Be warned though, auction houses will charge you for each time they enter the car so if you have sold your car after a couple of sales, you may want to check your reserve price or rethink your options.
How does it work?
Most auctions work on the same principal; your prospective buyers bid against one another, raising the amount which they offer with each new bid they make until their competitors drop out and they are left as the highest bidder. All of your bidders will be in the auction hall (although an online element is becoming increasing popular) and all bids are made in the open. This type of auction is known as an 'English Auction and its formula applies to the majority of vehicle auctions.
When your vehicle arrives at the auction centre, it will be inspected by the auctions technicians who will highlight any scratches, dents, scuffs, rust, etc and value the overall damage costs. It can be important to consider this when you think about your reserve as trade buyers will have a good idea of the vehicles value and of the damage costs and will factor this into their bidding. The damage cost will not be shown to any buyers, it is purely for the auction house's records.
Your car will then be photographed and 'lotted', the process whereby your car is entered into a sale. It will be assigned a lot number and will be placed in the auctions yard to be viewed by the buyers.
At the same time, your vehicles details will be published online for buyers to look at before they arrive at the auction. This is a good way of building interest in your car and most auction houses will send our copies of their latest catalogues to their buyers.
You should do your best to ensure that you car is entered with all of the paperwork and material which you have relating to it:
V5c Registration Document
Hand book
Any other manuals (SatNav, radio, etc)
Service book
Historic garage receipts of details of work carried out
Locking wheel nut key (if your car has one)
Any other information or items that came with your car when you bought it
All of these things are important to buyers and if you were buying a car, you would expect to have everything that you could have relating to it so think of these when you enter your car.
Of course, you will also have to leave your key and any spares with the auction.
In the auction halls...
When your vehicle is lining up to be driven into the auction halls, buyers will start to look closely at the car, looking for any damage and they may open the doors to look at the interior. Buyers are not usually allowed to test drive cars or look under the bonnet so this process of final inspection is important to them.
Once your car is in place in front of the auctioneer, the cars details and any special features, such as extra interior features, alloy wheels, etc, will be read to the audience. The auctioneer will then start the bidding with an opening bid below your reserve. If there is a great deal of interest in your car, bids can rise fast with many people competing. Eventually, the auctioneer may drop the increases in size to amounts that the last couple of bidders feel more comfortable with. This could mean that you see increases of £50 for your car rather than the £500s you were seeing right at the start. The buyer with the final highest bid has now bought your car as long as their highest bid was over your reserve. At this point the buyer has entered into a legal contract.
If the final highest bid did not quite meet your reserve, the auctioneer may class this a provisional bid and the auction will then attempt to negotiate between you and the buyer. At this point, you can ask for more money or demand that your reserve be met. If you go too high and the buyer pulls out, the sale will fall through. It is a balancing act between what the buyer is prepared to offer and the minimum amount you are willing to accept.
If you reach an agreement, the sale will go through as normal.
If agreement cannot be reached, you have the option to take your car out of future auctions and keep it, or enter it again in the hope of getting a better bid. Hopefully this won't happen and you will sell your car but if you have to consider this you should remember that many auctions are used by motor traders who attend most weeks and if they see the same car go through each week, they will be less inclined to offer a high bid. Auctions will also charge you for each time you enter your car, with some also charging storage after a certain amount of time and sales, so you should consider these costs when thinking of the money you intend to make from the sale.
How much will it cost?
The fee to enter your car in an auction can range from £15-£30 depending on the size and reputation of the auction house and will be deducted from the total sale value of the car. This fee will be payable each time you enter your car in to a sale if it does not sell.
On top of this, there will also be commission deducted from the sale price. This will be on an increasing scale and will depend on the sale price of the vehicle in question. Always check with the auction house before you enter your vehicle and shop around the auction houses local to you to get the best deal.
After the sale
Assuming that a deal has been reached or that your vehicle sold straight away, the auction will not give any of the vehicles paperwork to the new buyer until full payment has been made. Once this happens, the auction will pass all material relating to the car to the buyer.
Most auction companies will also deal with the legal change in ownership on your behalf and will communicate the sale to DVLA Swansea with the vehicles V5c Registration Document on your behalf, as you do not know the buyers details. Some auctions charge for this service so check at time of entry.
Car auction companies are usually pretty quick in sending you the money for your car and can be as quick as a couple of days after the sale, usually by cheque or bank transfer. The entry charges and commission taken by the auction will usually be details on a remittance advice sent to you once your money has been sent to you.
Other things to consider:
When you are thinking of putting your car into an auction, you may want to think of these things which can increase your chances of getting a sale:
Is the interior clean?
Having crisp packets, drinks bottles or cigarette ends n the ashtray is not appealing and you would not by a car like that so why would anyone else?
Do you smoke in your car?
If you smoke in your car, try to banish the smell of stale smoke as best you can. Smoking in cars can also lead to burns on seats, trim and just about anywhere else so be aware of them.
Have you got a complete or good service history on your car?
Buyers look at the service history on your car to see how it has been kept. A good service history usually mean that the rest of the car has been looked after properly. Main dealer stamps are highly sought in service history but your local approved garage will suffice.
Is there any tax left on your car?
Selling a car with tax allows the buyer to drive away with that car on the day they bought it. If your car does not have tax, they buyer will need to insure it, then sort out the tax before they can drive it. Since auction houses will not pass any vehicle documents to the buyer before full payment is made, this can lead to a great deal of hassle for the buyer as they will have to go away, sort the insurance, come back and pay for the car, go away and sort the tax (now that they have the MOT certificate), come back and finally drive away.
Trade buyers buying many cars will not worry about the hassle factor too much as they will get their new cars delivered by transporter, it mainly matters to them for the resale value which tax can add onto their forecourts.
When does the MOT run out (or does it even have one?)
Selling your car with MOT gives your car a boost in auction as buyers will just see it as an added expense if it does not have one. Your buyer will also need to have a valid MOT before they can ensure the car!
Are there cosmetic things that could be tidied or corrected before you enter it?
Are there stains on seats or interior trim that can be removed? Is there a brake light bulb that could be replaced? Are there stickers on the windows that could be removed?
Is it worthwhile sorting out that scratch before you enter it?
Getting a small scratch or dent repaired before you enter your car can increase the chances of it selling as it will not be noted on the damage report (as long as it is a good job!)
Do you have a spare key, SatNav disk, or old garage bills in the back of a cupboard somewhere?
You should do your upmost to ensure that you give everything associated with your car to the auction along with your vehicle. Things like spare keys add to the value and old garage receipts let your buyer know exactly what has been done, added, changed or mended to their new car as well as who done it.
Obviously, if your car has built in SatNav, you should include the disk for this along with any instruction manuals.
Remember, auction houses will inspect your car and so will our buyers sonly sort out scratches or other problems if you feel you can be a good job of it otherwise it just means that someone else has to redo your attempt meaning more cost and time!
This article is only meant as a guide as all auction companies have different processes, fees, client base and ethos but I hope that this article has given you some insight into the considerations of selling your car, van, lorry, tractor (or any other vehicle) at a car auction and if you do decide to follow this route, good luck!
In my next article, I will be talking about how an auction works from the buyers side.
T. Mapes
tom.mapes@sky.com
