You have been eyeing an item on the auction block and notice that the bids are flying fast and furious. You decide that you want to enter the fray. But before you place your bid, take a few moments and think about taking some or all of the following steps.

Know the Value

Ensure that you know something about the item's value. There is nothing worse than bidding on an item, getting caught up in the process and ending up paying much more than what it is worth. Remember one of the advantages of an auction is to purchase an item at a discounted amount.

Check under the Hood

Given that auction fraud is probably the number one fraud committed online, it is a good idea to check the seller's feedback rating. Ask yourself:

• Are the ratings consistent? Be mindful that a seller can engage in feedback padding by either posting himself or having partners post positive comments to the feedback system. Look for negative comments and any general themes that emerge. Don't ignore complaints just because you really want the item that is being auctioned.

• What is the seller's ratings relative to the type of item he or she is selling? Is he rude with small low price items and helpful with higher priced items?

• Is the seller new and without a rating yet? If the seller is new, there are 3 possibilities. First the seller is new and is trustworthy. Second the seller is new and untrustworthy. Third, the seller is using a different user name and can't be trusted or has a poor track record. The odds as you can see are not in your favour. Send the seller an email asking him about the item he or she is auctioning. Is it a friendly and timely response? If the response is not friendly, you will not want to deal with this type of person if there is a problem down the road with the item. If you have any doubts, stay away and only deal with sellers who have a rating.

• Does the seller know what he is talking about? If the item is an antique, it is extremely important that the seller knows what he is talking about to ensure that you are buying an authentic antique and not a fake. While there are some sellers who will try to pass off reproductions as originals, some unknowledgeable sellers simply will not know the difference. Such sellers might have been duped into buying a fake when they thought they were buying originals.