In World of Warcraft Auction House, trading is based solely on the principle of supply and demand. The value of any item is exactly the price someone last paid for it. A smart AH trader buys items at the LOW end of the market and sells them at the High end. That is how you make money at the World of Warcrfat Auction House.
Some items are common and have a range of prices whilst other items are more rare, and there is none offered for sale, therefore making pricing more difficult. There are TWO primary ways of selling products in AH: either thru open ended BIDDING until time is up, or thru paying the BUYOUT amount which buys the item outright at that moment.
If the seller did not establish a Buyout, open-ended bidding can take place over hours of time. Most players would rather not sit at the AH during those hours to keep bidding on the item, most of the AH activity focuses on Buyouts. Lastly, you pay a 5% commission on each sale. So the amount you receive will be the sale price MINUS 5% PLUS the deposit amount.
There are three World of Warcraft Auction House, one for the Horde only in Orgrimmar, another for the Alliance in Ironforge, and a neutral one in Gadgetzan. You can only put items up for sale, check what's available and bid by visiting each one. Although this means they're not very convenient unless you happen to be nearby, it can be worth your while to go out of your way. You'll be able to obtain weapons and armor suited to your character far more easily than waiting for drops, and often for less than you'd pay for something inferior from an NPC vendor. All sorts of other items are available as well.
On the other hand, if you have items to sell, especially if they're unusual and in high demand, you may be able to get double or triple what a merchant NPC would pay. There is a risk since a non-refundable fee applies when you put something up for sale, whether successfully or not.
Your approach to the World of Warcraft Auction House in many respects depends on your Bankroll which is to say how long you have been playing the game. That is, if you have accumulated 3 gold, your tolerance for losing deposits, for example, is not very high. However, if you have have 300 gold in the bank, it will affect how you approach the AH indeed.
