Does the REA auction pick up towards the end?
 

This Spring auction is the first time I have watched an auction and it seems really slow right now. Are REA auctions known for picking up in the last couple or days or can I expect this pace until the end?

Most auctions pickup towards the end. :eek::eek:

No lot is the same in my opinion. Some jump right out at the beginning and don’t move, some go slow and steady, some triple in extended bidding at the end.

Put in a marker bid on anything you might want, check back at 11PM on auction night and be fully prepared to lose.

Every item is different depending on the demand
Most auctions are long. So the first day or so everyone gets in an initial bid knowing the action really starts at the end. So then there is many days or weeks of a lull with an occasional bid or so for others getting in. Then on the last day or so more people get bids in or tries to position themselves. In extended bidding depending on the item and how high it went up in the beginning the bids often soar to whatever the market is set that night by a few potentially eager bidders.

In the end recently most items seem to go higher than most bidder thought they would and more then most collectors are willing to pay but someone does

At times if you lucky you can get a bargain but recently it does not seem that way and we have to step up to get what we want if we want it badly enough

For many desirable items it seems like 75% of the bidding takes place in the first 48 hours and the last 48 hours. Many people will put a bid down and have no plans to bid again until extended hours. Particularly where the rollout of new auctions seem endless like it does now.

Auctions run too long.

Some run a few days to a week too long. And some end wayyyyy too late at the end. Personal view is prices would not be any lower with slightly shorter and early ending auctions.

Thanks guys. I figured they would run similar to an Ebay auction but wasn't sure.

Like that Honus Wagner has been sitting at $750k for several days and wasn't sure if it was dead of it would probably heat up again soon!

Can't wait to check out the last 48 hours!

I am one of those people. :D

Marker bid and I don’t even log in to look till an hour before extended to decide what I will be continuing on.

Me too. This is really the most logical way to bid. There could be some value in bidding it up to get fence sitters to give up on the card early, but I think it's more likely that you're just driving up the cost for yourself if you bid before extended bidding. Honestly, it doesn't seem like any strategies matter these days... nothing slips through and you're going to have to pay more than you planned if you want it.

And yes, some auctions run too long. Anything longer than 2 weeks is annoying and I think it hurts the auction results. I've completely forgotten about a few of the three week auctions. There was one late last year (I think) that was 4 weeks, it was unbelievable.

It will heat up
 

The bidding on almost anything you want will drive you nuts by the close. Last auction I bid on some Japanese cards.... got my last high bid in on an auction that closed at 11 and went for extended bidding until 2 with the auction to close immediately at any time after 2am. I was high bidder at 0320 and when I looked the next day 2 other bids went ahead of mine and I lost again!! Sheesh...

I don't understand "extended time." Why do they do this? Seems unfair. Shouldn't there be a set start and end time?

eBay is more oh a hard end time and items can explode in the last few seconds. Large collectible auction house typically have an extend bidding time where an item closes when it doesn’t get a bid, usually for 15 minutes.

I tend to agree with this. I have put my initial bids in, then another auction comes around that intrigues me more (with more wants), and I will focus on the latter.

I gotta make choices, and at times the newer auction has the potential to grab my attention more.

Yes. I suspect high end vintage will blow away most of the past record high numbers. A couple sets specifically 61 and 62 Topps I expect to see go for stupid money. Hard to understand as you can't grade the commons cheaply anymore, be that as it may, expect this weekend to be full of outbid outbid notifications. :-)

What's unfair? Everyone has the same opportunity to bid. A set ending is actually more unfair, a guy who's a better sniper has a better chance of winning. The real reason though is an auction isn't supposed to end until the bidding is over. Extended bidding is the best way to reproduce a live auction in an online format. Could you imagine going to a live auction where the auctioneer announces "Bidding is open on lot 32 for 60 seconds. GO" and whoever yells a number closest to the end of the 60 seconds wins???!!!

Don't worry, you will understand it after watching this auction close. If there is something that you have to have, be prepared to stay up late Sunday night.

I certainly would not call it unfair, just a differing perspective. The set end times of eBay auctions are logically better for buyers as sniping keeps prices from running up. However, if you are a consigner or auction house, extended time does tend to bring in a larger price. You give continued opportunity for underbidders to keep inching the price higher. It's all logical.

I remember the old days of Ebay and traditional auction bidders not understanding the premise of sniping. I would come in at the end and grab it, which then with the open ID's would bring me at least a couple expletive laden private messages from the bidder I sniped per week. It really took a ton of people till the early 00's to figure out how that worked.

I don't mind when each lot closes individually with extended bidding. That gives everyone a chance to bid on their lots. I do not think it is fair when the entire auction has to wait for all bids to stop for 15 minutes before the auction closes. This often benefits west coast buyers because most of these auctions seem to end between 2:00 and 4:00 a.m. eastern time. There have been times when I have woken up at 5:30 a.m. eastern time for work and see an auction still open and able to bid if I still wanted. That just seems ridiculous and like the auction house is trying to milk every dollar out of the auction.

This !!!!

I agree 100%. Any auction company keeping bidding going after about 2am is just being stupid. IF people know it's closing they will bid earlier. I will never consign to an auction that runs all freaking night.
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For me the question of extended bidding is related to the question of bidding intervals. For auctions where the intervals are large (10% of previous bid, etc), there's often a specific bid that I will go to and I know I won't go any higher, so I go to bed once that's hit. When the intervals are small, it becomes much harder to draw that line (or avoid getting tempted past it).

Couldn't agree more. To go back to my live auction example. If we're on lot 32 and it gets another bid that doesn't mean someone can say "Hey I want to bid on lot 24 because lot 32 is still open!"

I get what you guys are saying. By "unfair" I just meant that it is frustrating that it can become a contest of whomever can stay awake later...

We have been saying this since AH's started doing auctions. Everyone should quit consigning to AH's that want to make us stay up all night. That might get their attention.
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Am eager to hear your thoughts on buyer's premium.

Buyer's premium?

Auction houses tack on a buyer's premium (typically 20%) to the winning bid, so if the winning bid is $1,000 that's akin to placing a winning bid of $1,200 on eBay when you get the bill. Definitely something to be aware of before you place any serious bids with an auction house.

East coast folks have many card shows featuring vintage cards. They are few and far between here on the West coast. So we each have unfair situations we need to deal with and navigate.

Having said that, the each lot closes individually structure is just better, and should be adopted by all auction houses.

Brian

And don't forget to check beforehand if the winning bid will also be assessed state sales tax...it varies from auction house to auction house, and also can depend on what state you live in.

Brian

Buyer's Premium....
 

I suggest reading the auction rules, terms and conditions before you bid. If you don't know what a buyer's premium is, if you win a lot in an auction, you will find out LOL
.:eek:

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Wait...so auction houses charge the sellers a 25% consignment fee AND buyers a 20% fee? And then possibly sales tax on top?!! What a freaking racket. These auction houses are just wringing collectors dry and getting rich in the process.

How do they stay in business?!

I read that and was waiting for you to go full GPK -

https://encrypted-tbn0.gstatic.com/s...9aj3Q&usqp=CAE

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. . . and lets not forget about the impact and fun that "shipping and handling" charges bring to the buyer's total cost :mad:

Do you think that they pocket the sales tax?

Breaking news: taxes collected are remitted to the state taxing authorities

I thought that was the same with eBay. Do they charge sales tax for everyone?

Okay well that part is true of course lol. Not their fault about sales tax I suppose. I may have gotten a bit carried away in my surprise about 20% buyers premiums haha.

I believe Ebay switched over to tacking on sales tax to all buyers, no matter what the state, a couple of years ago.

I could be wrong about if it was implemented uniformly, or if buyers from some states still did not have sales tax added to their purchases.

Brian

Some pointers for the auction newbs:

1. As a consignor, if you have decent stuff most any AH will sell it for 0% commission--the Buyers Premium (aka the BP or the vig) is where they make their money, typically 20% of the hammer price. If you have a consignment and the AH demands a commission, take it to another AH. If your consignment is really valuable, most AH's will also give you a piece of the BP. Selling your Wagner, ask for 110%-115% of the hammer price and you will get it. 1988 Donruss set, not.

2. Read the rules for each auction.

3. Read the rules for each auction.

4. Some AH's have switched to flat rate shipping charges. REA and LOTG both do that for run of the mill card lots.

5. Read the rules for each auction.

6. Closing methods vary. The goal is to maximize the amounts bid on each lot: happy consignors = repeat consignors. There are various ways to handle it. Here are excerpts from REA and LOTG's rules:

LOTG: This auction closes using the "Double Overtime" method, with a 15-minute rule for the entire auction. In order to bid on an item during the extended bidding session beginning on the date of the auction close, you must place at least one bid on that item prior to 9:00 PM Eastern on the auction closing date. If you do not bid on it by 9PM Eastern on the closing date, you cannot bid on it afterward. To ensure that everyone gets a chance to bid, we will apply the 15-minute rule to the entire auction beginning at 9PM, with the clock resetting every 15 minutes. Bidding continues until no bids have been placed in the entire auction for a full 15-minute interval. As long as there is at least one lot that receives a bid during a 15-minute interval, the entire auction will extend for 15 minutes. Once a 15-minute interval passes without a bid on any item in the auction, the auction will close. At 1:00 AM Eastern, any item that has not received a bid for one hour or more will close without notice. The remaining items will enter "Double Overtime," with the 15-minute rule applied to the remaining lots.

REA: REA will continue to accept bids from qualified bidders after 9:00 PM EDT on all lots in the auction. IF YOU HAVE NOT BID ON AN ITEM BEFORE 9:00 PM EDT, YOU CANNOT BID ON IT AFTER 9:00 PM EDT. If, after 9:00 PM EDT, a period of 10 minutes passes without a bid on ANY lot in the entire auction, then the auction will close. Based on past auctions, this is unlikely, so if the auction continues to 12:00 AM Midnight EDT (technically the morning of Monday, April 25, 2022), each lot will switch to a 10-minute lot-by-lot closing. During this lot-by-lot closing, an individual 10-minute clock will appear on each lot page. A bid on a specific lot will cause the countdown clock to reset. If the countdown clock reaches zero, the lot will close.

7. Read the rules for each auction.

Consignor in CURRENT Auction
 

As a consignor in the CURRENT auction, I thought it would help to provide you with an up-to-date review of bid patterns on my item.
First day, April 7, started out slow in the $50 increments. Continued the same on the 8th and 9th. And then NOTHING for three days. On the 12th it started up again in the same $50 bumps. It heated up, moving $700 in one day. Then nothing until the 14th. Suddenly, a $600 leap in ONE day. Holy cow! Then nothing at all for FOUR days. Now it is creeping up again in $100 moves, a couple of bids a day. Slowly.
You get the picture. This is the free market at work and the way it should be. As others have already mentioned, you will go to bed this Saturday night, noting the price your item rests at. When you wake up on Sunday morning you will be stunned. Guaranteed. If you are bidding you MUST be resolved to staying up late if you REALLY want an item. That's just the way the market is nowadays.
Peace.

Troll.

I also have exactly one item consigned in the auction. It received the opening bid on the first day and zero action since then. Looks like maybe they started it too high, but it went for 3x as much when they sold it in 2016. Win some, lose some I guess.

I will find out. No one picked up and I didn't leave a message. Calls are easy...
My guess, and this is only a guess, he is young.

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I get that sense too, the AH process can be quite eye opening the first time you dip your toe in the water.

Edited to say the registration of the OP got worked out.
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This is very true. AH rules can seem overwhelming at first even though they are not.

I am not a troll. I am relatively young though. 32 and new to vintage baseball only because I inherited some 1930s Goudeys. I am learning as much as I can and you all have been very helpful. 3 of the cards I own are up for auction at REA in similar condition to mine so that's why I'm so curious about the process in case I should want to sell mine.

That being said, some auction houses do charge hefty fees, and there is a lot of tangible evidence of various auction houses and grading companies (See Heritage and WADA), working together to create speculative bubbles in collectibles. Just do some research about sealed, graded video games. There's a good documentary on YouTube about it.

Leon and I texted. All is well! Sorry if i came across as childish gentlemen.

Here is the OP's first post on the forum...looks like some nice cards his grandfather had.

https://net54baseball.com/showthread.php?t=318028

Brian

Thanks Brian. Leon told me it's safe to scan them so I am going to probably create a new thread soon with scans of the better ones before I send them off to PSA through a trusted submitter. May send some to SGC but most have advised me to send to PSA for resale. I like the SGC tuxedo better though.

Make sure you read all the rules of the auction. They all add a buyers premium.

Consignors (sellers can negotiate the consignment fee, depending on what your consigning, sometimes zero or anything less than the 25%.

Definitely the West Coast has the advantage because of when the auction ends. I like individual lots closing if no bids on them for 10-15 minutes after 9pm. This gives everyone a chance at a reasonable hour. Why keep all the lots open until 4-5 am. ?

Hordfest/Brandon shouldn't have to pay any seller's premium.

I'm fine with modified closing a number of AH have adopted where lots can close after midnight or 1 if there has been no bid in the last hour.

I think that's fair to consignors and bidders.

I understand the confusion when first encountering the AH pricing models. They are providing a service by marketing, collecting payment, and shipping your consignment. In some cases, they will also submit your cards to a grading service. Some AHs will give you a partial advance (say 25% of the estimated value) on your consignment and you can also use your consignment to offset purchases in the same auction. In exchange for these services, they charge a buyer's premium (non-negotiable) and consignment fees (usually negotiable). It’s pretty much the standard business model for auction houses all over the world.

You have to judge whether you think you could net the same amount by selling the cards yourself (also factoring in the time and effort spent in doing so). If you choose not to use their services, there are other options without fees, like the B/S/T section on this board.

My understanding is that an AH charges taxes as per applicable state laws. No one asks Home Depot why they are charging sales tax on the microwave you just brought. Taxes are certainly a big issue...I live in New York, so I know…but it’s not specific to baseball cards.

As for the buyer’s premium, I am not clear what the issue is. If you know ahead of time you will be paying 20% more than you are bidding (it’s always in the rules), you take this into account when you bid. If you are willing to pay up to $1200 for an item, you bid up to $1000. I understand the psychology of it and the sticker shock when you get the invoice. But it’s not a hidden fee that they spring on you without advance notice. In some cases (Heritage, for example) an AH will show the current bid with and without the BP.

As for REA, I have some lots consigned as well. Some have spirited bidding, some only one or two bids. I am hoping the slower ones pick up, but I think this is a function of the cards themselves not REA. The cards are accurately described and scanned. I doubt the final results will be different from any other major AH.

[Edited to add: That was not a knock on REA. I use them because of familiarity, and because I like their knowledge, customer service, and ability to reach collectors. But my cards are what they are (not headline stuff) and I assume they would get more-or-less the same prices elsewhere.]

First, the vast majority of businesses in the world make more than a 45% gross margin. 2nd, very few, if any, auction companies make a 45% gross margin. I can tell you ours is significantly lower than that number. Gross margin, if you are not aware, is NOT profit mind you it's merely the difference between what we take in and what we send to consignors. so out of that number we have to pay for the online platform or software, all of our employees, advertising, lease on our offices and warehouse, show fees and on and on.

If you are new to the board dig around a little you'll see plenty of stories of auctions that went bust, often after they actually stole from consignors. Why did they steal? likely because, like you, they thought running an auction was an easy path to instant riches. When they found out they were wrong and they couldn't pay the bills, they victimized their consignors.

Clearly my opinion is in the minority here. Maybe I'll change my mind as I get deeper into the hobby. For now, let's just say I'm a skeptic.

Being a new collector myself, I can tell you from my personal perspective over the last few years that coming up with a deal outside of an auction house can and often does work out well. But auction houses for the most part ensure you a wide audience and tend to get top dollar. Although there’s a small chance you could consign what ends up being a steal for a bidder there’s just as much of a chance that you consign an item that ends up with an insane bidding war at the end and the item goes for more than you thought it would. Good luck with everything.

Ffs