b"By Jim and Bobbi Jeen Olson,WesternTradingPost.comT he earliest bid should win! A max bid left before the auction starts should have preference! The absentee bidder thinks, I put my bid in first, I should win at that amount or below! We agree with youbut what if Auctions have been around for about 2,000 years. During said time, a lot of laws and standards of practice have been tested and re-tested. Today, there is a long precedence of contract law and standards auctioneers adhere to. Online auctions have been around since the 1990s. During this time, it has become increasingly convenient for bidders to leave max bids at their leisure and let the platform bid on their behalf. Leaving a max bid ahead of time works out to the buyer's advantage most of the time if an item sells for what they bid or less. But once in a while, in a live auction format, the item will sell to someone else for the same amount as someones max bid left before the auction. Wait! How can that happen if I bid first? The simple answer given is that it wasnt your turn to bid. For example, if a max bid isweek ahead of time and say, I am going to bid up to $500 on this particular lot next left at $500, but you are currently winning the bid at $475, and the auctioneer is nowweek I just wanted to let you know ahead of time so I get priority up to and including asking for $500 from another bidder (often not knowing the amount of the max bidthat amount? Do the folks who plan to attend and bid live come by a week before you left). Then another bidder bids $500. It wasnt your turn and you dont bid againstand give the auctioneer a list of items they plan to bid on and the amount they will yourself in a live auction. Some dont agree with how this is handled. So this rarego up to to get priority up to and including their max bid amount? This would seem occurrence is the subject we address today.only fairright? Do auctioneers need this list of people who stopped by and the date which they did to claim their priority up to and including a certain amount and then First off, it is important to understand the differences in the types of auction formats.also look at the back end of the online software on each internet platform to see the time and date stamp of absentee bids left on the various online platforms? This way, There are online timed only auctions (eBay type auctions are examples). This formatwhen he gets to a certain number, he can make sure the first person who made the uses no auctioneer and the computer software handles bids. Then there are liveintent known to him last week gets the bid. Hmmm If this is the case, why not just auctions (an auction with an auctioneer, a live crowd and any one, or possibly several,have a timed auction and let the computer figure all that out.internet platform(s). (There are other formats like silent auctions but here we will address the online only and live simulcast variants). In an online time auction formatConversely, something often heard from the live crowd is, I am here in person; I (no auctioneer), the lot(s) are open for a specific time (usually from 3 to 14 days).made the effort to be here. I should get preference over the online person. They There is a specific starting and ending time designated. Its a race against the clock toalso want preferential treatment! Everyone wants things their way! But auctioneers see who has the highest bid when the time expires. Preference is given by the softwareunderstand it is not always feasible for the absentee bidder to attend. Therefore they to the first in time bidder in this format. Meaning the computer will keep the firstmake pre-bidding available online, by phone or email as a convenience to potential highest max bidder as the winner until his bid is exceeded. For example; if a max bidbidders. But does it deserve priority? Do those who show up deserve priority? When of $500 is left and someone subsequently places another bid of $500, the computeryou understand the difference in the formats, neither deserves preference at the live will not accept the second bid, it will put the first bidder in at $500 and tell the secondauction, all bidders start together once the auctioneer opens the lot for bidding.bidder they have been outbid and need to bid again. In this scenario, no acceptance of the second bidders offer was ever acknowledged by the system. Therefore, noAlas! There is another way max bids could be handled if we want our max bid amount agreement to purchase at that price was created between the potential bidder and theprotected. We could use our max bid as the starting point of the live auction. Now seller because the bid was automatically rejected in favor of the first bidder. that is a different story. If a bidder desires their max bid to automatically be the new high bid, let the auction house know. Most will accommodate you. But generally, In a live auction with an auctioneer (which can also be simulcast online withbidders do not want this. They want to pay as little as necessary to win the item. If you today's technology), it is different. In this format, a lot is open for bidding when thewant the auctioneer to start with your max bid though, so be it. But you will probably auctioneer announces it open for bidding and closes when he deems the highest bidpay more overall for the items you win. But if you want your max bid left during has been achieved and he says SOLD or drops the gavel (this whole process takespre-bidding to be an offer to pay up to that amount during live bidding and you want about 30 seconds to one minute on average). In this type of auction, a bid is acceptedto get it for as little as it takes to outbid the under bidder, remember the platform is when the auctioneer acknowledges it. He is the conductor. Once acknowledged, anstanding in on your behalf just like you were there bidding in real-time and that is a agreement is created between the auctioneer (sellers representative) and the bidderconvenience for you. Not a way to gain priority before the auction starts. Most of the (buyer). But wait! Its been online for 2 weeks! time, max bids will work to your advantage, but also be prepared to miss out on an item once in a while due to the way the bidding falls during the live bidding.As a matter of convenience to bidders, most live auctions today make pre-bidding available online. With regards to max bids left absentee (online or otherwise) beforeIf there is a particular item you want badly, leave a higher max bid, or tell the an auction starts, we must remember they are offers to bid up to a certain amount onauctioneer to jump the bidding to your max bid amount automatically. In the long behalf of a bidder, the same as if that bidder was there in person, bidding against therun, however, you will save money on items won by using your max bid as an offer to other bidders. A comment received was, unless an auctioneer is going to observego up to a certain amount and not as a starting point.an absentee bid up to and INCLUDING the max dollar amount, then, quite frankly, there's no use submitting max bids. Hmmm I think some confuse the timedMost auctioneers are fair and try to acknowledge the first person (whether online or auction format with the live bidding format. in-person) who bids the amount they are asking for. But also remember that in live/simulcast auctions you do not typically raise your own bids and the option of leaving Think of it this way. In the live bidding format, pre-bidding is made available as amax bids ahead of time is a convenience. It is the bidders responsibility to understand convenience for bidders who find it otherwise difficult to attend the live auctionhow max bids are handled. If they dont agree with it, they can always bid live. This (when the lots are actually open for bidding with an auctioneer acting as thecan usually be done in person or by using the live online bidding option (watching it conductor). The ability to leave an absentee max bid ahead of time on a platform isin real-time on your device). In our experience, there is generally one happy person the same thing as if a bidder sent someone to the auction on his behalf to bid up to a(the winning bidder) and others not so happy (anyone else who didnt win). But as certain amount on an item.long as auctioneers are consistent with their practices and follow basic contact law and standards of practice, its all you can ask for. If we give the absentee bidder preference for being first to bid (when they are just taking advantage of a convenience) then in order to play fair with all other parties, doPlease keep in mind, auctions are fun!Learn the nuances and use them to the best of we need to change how we deal with other bidders? Does the phone bidder call in ayour advantage! And good luck bidding! 38 May 2020"