How to bid in an online auction

How do I make a bid at an online auction?

To make a bid at our online auction, you need to first create an account to register for our online auctions. Then you can search available lots to check which assets may be of interest. Once you have found a property you may be interested in bidding for, you will then need to register to bid. After being authorised, you will be able to enter the amount you intend to bid for your desired property. Or, there is also the option to include a maximum bid price. 

What is a maximum bid and how does it affect my bidding?

A maximum bid is a bid placed on behalf of a buyer, up to the maximum amount. This feature allows buyers to outbid other bids without having to be online, whilst giving the bidder the control to specify the maximum bid.

With a maximum bid, the buyer specifies the price for the highest bid. The system automatically places the next bid and increases it by the bid increment until the buyer either wins the bid or his maximum price is reached. This method and the maximum bid remains in effect until the end of the auction or until the buyer changes his maximum bid. Any new bids made by other buyers automatically activate the maximum bid function for the buyer.

The maximum bid placed by a buyer is never disclosed to other buyers – and the system will always use the lowest bid necessary to win.

What is a minimum bid increment and how does it affect my bidding?

The minimum bid increment is the minimum amount that has to be added to the current highest bid in order to place a new bid. This encourages buyers to bid larger increases in price, thereby decreasing the number of small, insignificant bids and the work required to administer them. Generally, this increase is larger for high value products.

What is a reserve price, and how does this affect my bidding?

A reserve price is the minimum price which the seller is willing to accept from a buyer at auction. In our online auctions, we have the right to specify a “reserve price” for a lot. When such a price has been defined, it means that only the buyer making the highest offer, which is above the “reserve price”, will win the bid. If the offer is below the “reserve price”, we are not obliged to sell the item. We use reserve prices to protect the seller of an item at our auctions and prevent them from having an undesired outcome. 

Understanding 'Reserve Not Met' and 'Reserve Met'

'Reserve not met' in an auction refers to when the highest bid has not met the reserve, or, the minimum price set by the seller. When the reserve is met, however, the seller is obliged to sell to the highest bid if this corresponds to the reserve price or is higher. The auction commences at the opening price, ‘Reserve Not Met’, and bids can be made until the end of the auction. When a bid exceeds the hidden reserve price, the product is clearly marked with ‘Reserve Met’, the obligations change and bidding can continue. 

What is the 10 minute rule?

We use a 10 Minute Rule policy which means that if a person places a bid within the last 10 minutes of the auction closing, the auction will extend to 10 minutes left. This is to rule out sniper bidding at the end of auctions.

How to set a budget for an online auction

During the online auction process, it may be possible to overspend when bidding, therefore we recommend setting a budget beforehand to manage your spending. Once you have reached your maximum budget, you can know it is the right time to stop bidding. 

If you are interested in purchasing an asset auction, at Eddisons, contact our asset sales team today for more information. In addition, if you may be seeking to purchase a commercial property by auction, we are one of the largest property auction houses in the UK, offering over 3000 lots on a combined basis with our recent acquisition of SDL auctions based in Nottingham, with lots across the country.