Sold: The Secrets of Auction Success
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by: ArdisMyles
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Looking for a really unique item? Want it at a really good price? Search out an auction sale and start bidding for bargains.
From rural auctions featuring equipment and livestock, to automotive auctions where the rich and famous bid on elaborate sets of wheels, to Internet auctions where bargain hunters shop from the comfort of home, auctions provide exciting places to shop, or just sit back and watch the action unfold.
Every auction is based on the premise of a group of buyers bidding on sale items. The items are presented for sale individually, sometimes with set starting amounts, and the bidding begins. Potential buyers increase their bid amounts and the selling price gradually goes up. Then, 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 continues. Auction sales can be very good forums for determining the real value of particular items, especially when collectors are involved. When people really want certain items, money is sometimes no object at all.
This basic premise is true of all auction types. There are, however, certain variations, rules and regulations for each unique auction style:
* English Auctions: The granddaddy of all auction sales, this is the basic style that pits bidders against each other in an open forum. The item goes to the person who bids the highest amount.
* Dutch Auction: Basically opposite of the English auction, a Dutch auction begins with the auctioneer offering the item at premium price, and then lowering his offer in increments until someone agrees to pay that amount. This is almost a game of chance, as buyers will jump in and pay a little more for fear of losing the item at the next lower price to someone else. Dutch auctions are practical ways to auction items quickly, as it only takes one bid to end the sale.
* 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 Auction: In a vickey auction, a bargain hunter gets a little more of a bargain. The person who bids the highest price wins the item, but only has to pay the second highest amount.
* Buy-out Auction: Similar to an English auction, a buy-out features items offered for sale at predetermined prices to anyone who wishes to pay full price. These are also referred to as "buy now" prices. If no one in the group wants the item at full price, bidding will begin and the highest bidder wins the auction.
* 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 are perfect venues for buyers to find all sorts of affordable treasures. Antiques, artwork, cars, collectibles, real estate and countless other types of new and used commodities are put on the block and sold to the highest bidder. With crowds of interested buyers flocking to these types of sales, the auction action can quickly escalate. When more than one buyer is determined to win the prize, competition can be fast and furious. In the end, the final sale price can easily exceed the actual value of the item.
Qualified auctioneers are hired for a flat fee or a predetermined percentage of the proceeds. These professionals know about the community and its buying preferences, and can provide hints and advice to obtain 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.
If you get tired of mall walking, and find that rummage sales are little more than rubbish sales, scratch your bargain-hunting itch at an auction sale. It's an exciting experience, and you can bag a real bargain on just about anything you're looking for.
About the Author
Contributor Ardis Myles enjoys writing articles for a variety of web magazines, such as http://sowbelly.com and http://drivers.biz.
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