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What Is Bidder’s Choice At An Auction?

Tuesday, April 10th, 2018
learn about different types of auctions at High Plains Auctioneers

If you do not attend auctions regularly, then you may not be familiar with the term “bidder’s choice.” This is a grouping strategy used by the auctioneer when there is a large amount of similar items up for sale. Selling these pieces separately would take a great deal of time, so it is more efficient to sell them as one lot. If the auction house does not use bidder’s choice to sell a lot, they may lose time, money, and bidders. Usually, they will choose this format for books, tools, dishware, and other common goods. The following can help you understand bidder’s choice before you go to auction.

How does bidder’s choice work?

The auctioneer doesn’t have the authority to set the guidelines on a bidder’s choice lot. An announcement will be made with the rules of the sale prior to the auction. Still, it may not be clearly defined because most auctioneers assume all parties have full knowledge of the items within the lot. This is one reason why it is best to do some research on the items before the auction.

In some cases, the auctioneer may single out a few items to begin the bidding process. Usually, the most expensive items will be put up first, then the next set of items will become available after that first lot has been sold. Bidders will compete against one another until the highest and unchallenged bid is secured. At that time, the winning bidder can choose as many items as they desire from that claimed lot.

The benefits of a bidder’s choice auction

Many experienced bidders enjoy participating in these lot auctions because if someone else wins the bid, the remaining items will become available in a second lot. Hopefully, your desired items will still be available from the original lot. The price is usually lower than the first winning bid, but don’t be surprised if other bidders compete with you.

Usually, the auctioneer will continue with this format until the bidding becomes too low. At that point, all items will be put into one lot and auctioned off as a single group. Bidder’s choice offers an alternate way to gain competition among the bidders, and can guarantee the final sale price will be for profit. Also, the proceedings give bidders another opportunity to get an item that they may not have been able to afford at the start of the auction.

Bidding successfully on a bidder’s choice lot

Bidder’s choice helps buyers to focus on winning one bid, instead of purchasing an unwanted item. Generally, it would be wise to bid defensively. However, it can be better to become more aggressive to gain more positive results. This approach prevents you from using a last minute bid technique to secure an item, but in bidder’s choice, this may not be needed. Under this format, any bid cannot go unnoticed because all bidders have a higher than average chance of winning.

If you would like to learn more about auctions, contact High Plains Auctioneers today. We can answer any questions you may have on how to Bid or Sell at an auction. You can call us at (806) 244-6776 or Contact Us by email for more information. Don’t forget to check out our Upcoming Auctions to see what we will have available!