Be a Better Bidder: Auction Sales
May 25, 2008 – 8:32 pmLooking for a really unique item? Want it at a really good price? Search out an auction sale and start bidding for bargains.
There are rural auctions featuring livestock and equipment, free-wheeling automotive auctions where the rich and famous bid on rare and classic cars and Internet auctions where bargain hunters shop from the comfort of home, antique auctions and more. All of these bring excitement, whether you’re placing a bid or just biding your time as a spectator.
At an auction, groups of buyers bid on items offered for sale. An item is presented for sale and the bidding begins, sometimes at a set minimum amount. The selling price gradually rises as buyers increase their bid amounts and when the gavel drops, the highest bidder is declared winner of that item. Another item is then placed on the auction block, and the action starts over again. Auctions can be good ways to determine the true value of certain items, especially if collectors are involved. When people really want an item they’re willing to pay the full price that reflects the value.
Of the many types of auctions, the basic premise is the same. However, each type of auction has specific rules and regulations in place:
* English Auction: This is the granddaddy of all auction sales. It’s the basic style of bidders going up against each other in an open forum. The person who bids the highest amount gets the item.
* Dutch Auctions: This is basically the opposite of an English auction. In a Dutch auction, the auctioneer begins by offering the item at premium price, and then lowers his or her offer in increments until someone agrees to pay that amount. It’s something like a game of chance, as buyers can jump in and pay a little more for fear of losing the item at the next lower price to someone else. With only one bid to end the sale, Dutch auctions are practical ways to sell items quickly.
* Sealed First Price: Similar to a “silent” auction, this type of sale involves a simultaneous bidding by all potential buyers. However, no one knows the other participants’ bid amounts. Whoever bids the highest amount gets the item at his or her suggested price.
* Vickey Auctions: Bargain hunters get an even bigger bargain at a vickey auction. The person who bids the highest amount will win the item, but is only required to pay the second highest bid amount.
* The Buy-out Auction: A buy-out auction is similar to an English auction, with goods offered for sale at predetermined prices. The auction begins, and anyone wishing to pay full price may do so. The preset amount is sometimes known as the “buy now” price. If no one wishes to pay the full price, open bidding will begin. The highest bidder will take the item.
* The Open Outcry Auction: This is the type of auction usually seen in the stock and commodities markets. An open outcry auction involves lively trading at every corner of the arena. With the ever-increasing popularity of the Internet and modern communications, this type of auction is being replaced by electronic trading platforms operating over the worldwide web.
Auction sales can offer buyers a quick and easy avenue to pick up all kinds of items. Collectibles, real estate, antiques, cars, artwork and countless other commodities, both new and used, are put on the block and available to the highest bidder. These types of sales draw crowds of interested buyers, and the auction action can quickly heat up when more than one buyer is determined to win the prize. The competition can be fierce, and final sale prices can easily exceed the actual values.
Most auctions are led by qualified auctioneers who are hired for a flat fee or a predetermined percentage of the proceeds. These professionals can provide information about the community and its buying preferences, as well as hints on obtaining the highest price for one’s property.
Most auctioneers in the United States are licensed by the state after completing a series of oral and written examinations. An auctioneer must be reliable, with proven integrity and a good reputation. In addition to leading the sale, auctioneers are responsible for publicizing the events and resolving any disputes or conflicts that may arise during the sale.
When mall walking gets a little dull flea markets fall a little flat, try searching for treasures at an auction sale. The excitement can run high, and you just might bag a real bargain on a true treasure.
Tags: Auctions
Related Posts
Print This Article :
