Auction Houses and 15 minute rule
jayhawke
Posts: 1,325 ✭✭✭
I am tired of this 15 minute rule. The way it should be is if the lot that I bid on does not get another bid in 15 minutes, my lot should close. The way it is now is BS. I get outbid on a lot 14 hours after the auction closes. This needs to change.
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The 15 minute rule makes auctions more fair, by allowing all bidders an equal opportunity to place their best bid. In online auctions where an auction ends exactly at a given time, some bidders will hold their bids until the last minute or so, in the hope of winning an item on the cheap. This is referred to as 'sniping'. The 15 minute rule gives all bidders an equal opportunity to place their best bid on an item before the item closes. This way, no bidder loses an item to sniping, and the seller can be assured that he has gotten maximum value for the item.
PoppaJ
A prime example was an item in which I placed the opening bid and nearly 6 hours AFTER the close of the auction (during extended time), I was bumped by a second bid even though the auction rules stated that a bid must have been placed on THE item to enter into extended bidding. Since I was the only bidder on the item during "regulation," I not only found it odd that I was outbid by someone that, by according to the house rules, did not have the right to bid, but that the winning "bidder" surprisingly reneged two days after the close of the auction. I took the item at my original opening bid, but I refuse to do any further business with the auction house.
there are a number of auction houses that now close lot by lot and do not keep the entire auction open for the 15 minute rule
That's rough, but Auction Houses are in it for the money and have used every trick in the book.
Mike
As Scott mentioned the AH does not follow their own rules very closely and can circumvent any "rule" with some obscure by line in their terms or just make something up, doesn't matter they are god.
You really think with all the educated folks out there buying high end collectibles they can't figure out when to make a bid? At the most it should be extended per item not entire catalog. The AH's are extremely lazy (as noted by their cut and pasting of auction descriptions and numerous typos in their catalogs) so anything resembling work will not be listened too.
<< <i>Understood PoppaJ, but I think the OP is referring to the fact that a lot may go multiple hours after the close of the auction WITHOUT another bid. This no longer becomes sniping, but a case of outlasting other potential bidders by staying up. Setting proxy bids, while encouraged by the auction house, does not give us peace of mind as some auction houses will place in-house bids to run up the bidders' proxy. Personally, I would rather pace a bid if I'm outbid, but I do not appreciate having to stay up until the wee hours to do so.
A prime example was an item in which I placed the opening bid and nearly 6 hours AFTER the close of the auction (during extended time), I was bumped by a second bid even though the auction rules stated that a bid must have been placed on THE item to enter into extended bidding. Since I was the only bidder on the item during "regulation," I not only found it odd that I was outbid by someone that, by according to the house rules, did not have the right to bid, but that the winning "bidder" surprisingly reneged two days after the close of the auction. I took the item at my original opening bid, but I refuse to do any further business with the auction house. >>
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Hi Scott,
I don't necessarily agree with the 15-Minute Rule; I just thought I'd let others know how it worked.
You make some great points .... I certainly appreciate and understand your reasoning.
I've only participated a couple of times in auctions that utilized the rule and actually won once.
I can see how frustrating it would be in your particular situation.
PoppaJ
<< <i>but I think the OP is referring to the fact that a lot may go multiple hours after the close of the auction WITHOUT another bid >>
Exactly.
Say I as the bidder am considering two items in an auction. Problem is, I can really only afford one of them, so I prioritize them, and concentrate on the lot I want most. At some point, it goes higher than I'm willing/able to go. At that point, I switch over to the other lot. It's still at a level I can afford, so I bid on it. This is only possible if all lots end at the same time under the "15-minute rule". If each lot ended separately, I could miss out on both lots, since the second lot I was interested in, could've already closed before I switched over to it.
Both methods (all lots ending together, or separately), have their good and bad points. The auction company is in business to maximize profits for their consigners, and also themselves. The best way to do this seems to be to have all lots end together.
Steve
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<< <i>Say I as the bidder am considering two items in an auction. Problem is, I can really only afford one of them, so I prioritize them, and concentrate on the lot I want most. At some point, it goes higher than I'm willing/able to go. At that point, I switch over to the other lot. It's still at a level I can afford, so I bid on it. This is only possible if all lots end at the same time under the "15-minute rule". If each lot ended separately, I could miss out on both lots, since the second lot I was interested in, could've already closed before I switched over to it. Steve >>
I've been in that position and wanted to move to a second item when my first item went out of range - I had initial bids on both - but the first item went out of range at 3 AM so I did not bring home either item - I'd say if you're going to have extended bidding on every item until 15 minutes after the last bid on any item, why end the auction at 10 PM - why not 3 PM or 5 PM? How many other legitimate business transactions take place at 3 AM?????
If I remember that was in a Goodwin auction and not a ML.
Bobby lots of bidding late stop worrying.
Steve
I dunno the answer to your question. I only know the 1962 Card Mickey was talking about was not a ML auction.
If I had to choose and depending on what I had I'd prolly use REA.
Steve
<< <i>otwcards.....It is my impression that if you are the ONLY bidder on the lot, and noone else has bid on the lot before 7:00 PM eastern time tonight, then noone else can bid on that lot....they are effectively locked out. The only lots you can bid on AFTER 7, are lots that you currently have an interest in....make sense? >>
Certainly it makes sense and it's written as a rule by most of the major auction houses. However, if you read my earlier post, you will find that it is/was not the case. It's actually happened to me twice. One I lost and the other conveniently had the bidder reneg after I was outbid in the wee hours.
But speaking of Memory Lane, I entered my first and last bid there today.
Now to see if I can stop the daily spams??? (barely exaggerating).
<< <i>Poppa J, why do fixed timed auctions not give every bidder an equal opportunity to place their best bid? >>
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Hi Proofer2,
My guess would be that it's due to the lack of sniping by most bidders. Most of the time a sniped bid will win out over a proxy bid.
PoppaJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
I never said Memory Lane. The post seemed to be talking about auction houses in general and their 15 minute rules.
lol I got the two auction posts confused.
Steve