Overpaying rarely feels like overpaying in the moment. Here are five warning signs that you are about to bid past profit.
1. You don't know the sold comp
If you cannot name roughly what the item last sold for, you are guessing. Guessing in a fast auction almost always drifts high.
2. You're in the biggest room
The largest streams have the most bidders and the thinnest deals. More competition means higher hammer prices and less room for margin.
3. You've started 'chasing'
Bidding to win the last one you lost is chasing, not sourcing. The item does not care that you lost the previous lot.
4. You forgot the fees
A bid that looks profitable often is not once commission, payment processing and shipping are added. Always price on your all-in cost, not the hammer price.
5. You can't say why it's a deal
If you cannot explain the margin in one sentence, there probably isn't one.
Any one of these signs is a cue to pause. Two or more is a cue to pass.