Auctions are a popular way to buy and sell stamps – millions of dollars worth of philatelic material are sold annually at auctions in the United States.  But it is very important that you understand the process to ensure a positive experience.  Here are a few tips for buying and selling at auction, prepared from our experiences at the APS handling members’ complaints.

Tips for selling at auction

1. Know the risk – Choosing to sell at auction rather than an outright sale involves risk.  You could net less than selling directly to a dealer.  If the item or collection sells for the same amount or just a little more than an outright sale, you may actually realize less because you have to pay the auctioneer a fee.
2. Choose an appropriate auction house –Some firms are known for sales of certain types of material.  For instance, consigning a British Commonwealth collection to a firm that focuses on United States or a single high value stamp to a firm that specializes in box lots may not be your best choice.
3. Understand the terms and have it in writing – Thoroughly review the agreement and make sure any specific expectations you have are included.  Things you may want to clarify:

• How the collection will be sold – as a single lot or broken into several lots. 
• Do you want to review lot descriptions before they are published? 
• What fees will be charged? Are there fees for unsold lots? Will unsold lots be included in the next auction?
• What happens if you want to withdraw lots?
• Will there be a minimum selling price or reserve for your items? What will this be? If you want a minimum selling price, you may have to agree to purchase the lots back or pay a fee to the firm if the lots do not sell.
• What are the timelines? You should know the specific sale date, when you will receive payment, and what happens if a purchaser asks for an extension to have items expertized.  

Tips for buying at auction

1. Understand auction rules – Before placing bids, read the terms of sale.  Each auctioneer has their own terms, timelines, payment schedule, etc. So be sure to read carefully.
2. Review items before placing a bid – Make sure you read the descriptions and examine images (if available) so you understand what you are bidding on. 
3. A bid constitutes contractual agreement - When placing a bid, you enter into a contractual agreement based upon the terms or conditions of sale.  A bidder must be prepared to pay for every lot on which they place a bid.
4. “Or” bids or purchase limits – Many auction firms offer two common ways to limit your purchases, while still bidding on a number of items.

• “Or” bids — A bidder who wants only one of several similar lots can enter what is termed an “or” bid. As soon as the bidder is successful in purchasing one of the lots, his or her bid on any subsequent lot is nullified. 
• “Purchase limits” — By specifying a “purchase limit,” you can bid on whatever items you wish, with the knowledge that once your “purchase limit” has been reached, all subsequent bids will be nullified.