Be a Better Bidder: Auction Sales

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Be a Better Bidder: Auction Sales

Looking 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.

The basic premise of an auction is to have a group of buyers bidding on sale items. Each item is presented for sale and the bidding begins, often with a set minimum amount. Gradually, the selling price goes up as potential buyers increase their bid amounts. When the gavel drops, the highest bidder is declared "winner" of that item. Then, another item is placed on the auction block and the action begins again. An auction sale can be a good way of determining the true value of certain items, especially when collectors are involved. People who really want particular items are willing to pay a top 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:

* The English Auction: This is the granddaddy of all auction sales. It's an open sale with bidders working directly against each other. In the end, the item will go to the person who bids the highest amount.

* 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.

* The Sealed First Price Auction: With this type of auction, all bids are made simultaneously. However, no one knows how much other participants have bid. Of course, the person who bids the highest amount will get 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.

* 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.

* Open Outcry Auction: This is the kind of auction most often seen at commodities and stock markets. At an open outcry auction, trading happens simultaneously in all corners of the arena. With the advent of the Internet and modern communications technology, these auctions are being replaced by electronic trading platforms that operate 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.

In the United States, most auctioneers are licensed by the state after completing a series of oral and written examinations. Auctioneers must be reliable, practice integrity and have a good reputation. In addition to leading the sale, auctioneers are also responsible for publicizing the events and resolving disputes or conflicts that may arise during the sale.

When you're tired of mall walking, and rummage sales prove to be little more than rubbish sales, try scratching your bargain-hunting itch at an auction sale. It's an exciting experience, and you're bound to find a great deal on just about anything you're looking for.

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Contributor Ardis Myles is a writer for numerous web sites, on start home business and computer drivers themes.

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