Now that the collecting bug has bitten and the eBay web site is handily just within reach, how do you choose the right stuff to bid on?  Educate yourself first!  No, you don't have to spend lots of money on reference books but it wouldn't hurt to keep the basic one or two handy.  For collectors of U.S. Obsolete notes the Haxby reference set (4 volumes) is the "bible". The various individual state references published by the Society of Paper Money Collectors and privately is another alternative.  What pertinent information do these provide?  To start with, they don't provide current values!  The best way to follow pricing is through catalogues of recent auctions.  The market is too volitile for hard cover publications to keep abreast of changing values and currently there is no monthly or weekly price guide for obsolete notes. What they do inform you of are the various notes available from a prticular issuer.  Is the note you are looking at genuine, counterfeit or raised?  Here you will find the answer.  Also, use the pricing available to get an idea of relative worth.  The state editions refrain from pricing but do give you an idea of rarity.  Bear in mind that the pricing that does appear is 15+ years old and most likely out of date.  You could keep a record of catalogue and eBay sales of notes that interest you to see where the prices may lead.  Build your own data base!

Mis-information can cost you!  Although the descriptions of the notes offered for sale are essentially correct the scan may show it to be only a "remainder note" and not signed and issued.  Remainder notes  in almost all cases should command prices less than the same signed and issued example.  Most remainders are much more plentiful and should be in excellent shape when offered.  One does not often find remainder notes in lower than uncirculated condition.  Paying an exorbitant price for a remainder just because it is uncirculated does not seem to make much sense.  There usually are hundreds if not thousands available.  The same high grade but "signed and dated" notes would be much more desireable but possibly  not available.  Paying more for a "certified" remainder note or a low grade, common signed note may not make much sense either.  However, buying "certified" may be of comfort to the buyer.  Often the certification companies (PMG,etc) muddy the water rather than clarify it by assigning grades like this:  a "very fine" grade assigned to an uncut remainder sheet of obsolete notes that has been folded a few times.  If it is an uncut remainder sheet how could the notes have been circulated, as "very fine" would indicate?  Shouldn't the grade read "UNC" with creases or a reasonable facimile?

Genuine notes should command the highest price.  Altered notes while interesting, still are not the real thing.  Usually they are altered from another bank.  Raised notes on the other hand are from the same bank, just a lower denomination.

Notes offered that have vignettes of identifiable or historical scenes should be worth a second look.  Here the engraver has captured a place in time or event in history. Cool!  Certainly worth more than your everyday allegorical vignette.

A word on grading.  Seeing the written grade on a note in an eBay auction is welcome as very often the image shown will look better than the actual note in hand.  Most collectors are happy to find listings of rare notes that grade a respectable (vg-fine).  The outstanding population of individual banknotes is so low relatively, that if that "prize" presents itself in a respectable condition one should jump at it and not wait for a better example to show up.  Chances are, that opportunity may not come for years, if ever.

Hype!  An eBay phenomena.  Nowhere in the conventional world of collecting is the use of the word "RARE" used so often.  Some sellers hype much of their material with this adjective.  Can there really be that much truly rare material be offered through this portal?  This is why the education aspect is so important.  Hype is often 90% exageration. 

I strongly suggest to take note of and patronize the sellers who describe well and disclose some pertinent information about the item for sale.  Very often interesting facts or history about the item for auction go unmentioned.  An educational opportunity lost.

eBayers who want to continue their education in U.S. Obsolete Banknote history, production and worth might want to consider that for the price of one mediocre banknote they could obtain a copy of Dave Bower's new book "Obsolete Paper Money, 1782-1866".  There isn't much left to be said about obsolete banknotes that doesn't appear in this book.

Enjoy your hobby and let knowledge be your buying guide.