Verify Qualification for Expensive Purchases
With large purchases, there are really important steps to verify that the bidders can actually make a bid, that they're qualified to be able to make a bid, and that they have the resources. They may have to go through a verification process before they can join the bid.
For example, they may have to show that they are qualified to make a purchase on a home, if we're doing home sales through an online auction. Car sales are another potential place where verification to purchase might be needed.
The verification can involve a pre-approval, or a statement, reference, evidence of funds available, etc. We may have to also have them go through legal documents where they're actually signing and doing a credit approval or credit check, if there's some expensive piece of jewelry, or a deposit process, where in order to participate in the bid they have to have an earnest money deposit that shows that, “yes, I understand that if I get the winning bid and I don't complete the process, it's on me, and it's my responsibility, and in which case, I will lose that earnest money, and the winning auction becomes available to the next highest bidder.