What are some things to consider when you attend an auction?

When you are attending an auction, you need to be aware of what’s going on—especially when you go to pay for the items you bid on.  There are some things to consider, and it could potentially add quite a bit to your bill.

The first thing to consider is that there could be sales tax added to the bill.  The amount of tax really depends on the state that the item was bought in.

Another thing to consider is that the auction house might have added fees when you buy there.  I’ve seen these fees range from 10% all the way up to 30% of the final auction price.

I have seen auction houses have an auction in a certain location and allow bidders overseas to bid on an item.  If you buy an item that’s overseas (especially in Europe and India), there could be restrictions and laws that prohibit you from shipping the item to the United States.

If it’s possible to ship an item from overseas, not only will you have to pay to ship the item, you could also need a special license to ship it here.  One country that I know of that states you have this license is Spain (and it could take a couple of months to get your item).

Another thing to consider are Paypal or credit card transaction fees, which can quickly be racked up on how much you buy.

So, when buying at an auction, it always pays to do a little homework on what is going on.  If you still have questions about something, it also pays to ask questions.

What kind of taxes and fees have you run across when you went to buy an item?

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