Whether you are planning to make a living on selling items at an auction or just want to maximize your profit from an item you have entered, take note of the following tips on how to boost your sales and make money at auctions.
List item(s) on auction houses that sell similar products as yours in similar price ranges. There are auction companies that accept and sell anything. This is okay but your first choice should always be the ones that are selling similar products as yours.
Why? Bidders and shoppers look for a particular item to buy and they want to buy it where they have several choices. The more choices the auction offers, the more people they attract. The same reason people go to a department store rather than a small outlet. Placing your item among other similar items at similar price range increases its chance of selling.
Make your item stand out. Buying the rights to become a feature auction can cost you money. Unless you are selling something that can yield to a big sale, refrain from paying for extra exposure. What is meant a good advertisement is by making sure that the item you are selling attracts positive impression and interest.
If it is property you are selling, do some improvements. Refaced kitchen doors, newly painted walls, and a clean front porch may not boost the cost of your house significantly but they can be the factors that will help potential buyers decide to buy your house. This also applies to any products you want to sell at an auction.
Answer to the buyers' wants and needs. Bidders want to buy something worth their money. So the item(s) you sell should be well in the range of the buyer's budget. If you follow #1, you're doing it right. Bidders need to buy items that they can take home as simple and as quickly as possible. Your shipping and handling terms must coincide with their requirements.
Be realistic in setting your 'reserve' price. Most bidders do their homework and search for the current market value of the items they see on auction listings. Try not to take this for granted as you will likely not get any sale if plan to rip off your buyers by setting unreasonable prices. Take note, most people go to auctions because they want to save. Don't attempt to sell your item(s) higher than what they are worth.
4/20/09
Benefits of Auctions for Sellers
Many sellers, property owners and brokers often prefer to sell items through auctions due to the following reasons:
An item is considered sold once auctioned
Chances are the items will be bought once listed at an auction. The fact that it is being auctioned means that it has some good market value and this value could increase depending on the bidders. The buyers will always find good reasons to buy the item presented to them even if they may have no intention of doing so.
All buyers are willing to bid
There is no other way for potential buyers to get the item they want but to bid at an auction. Thus the seller has the assurance that his items and properties will be sold at the end of the day.
Quick disposal of items
Probably one of the fastest ways to sell things, auction gives the sellers the advantage of fast disposal of the merchandise. Once an item is presented to the crowd, someone will always be willing to get hold of it. This then will cut the expenses on maintenance, taxes, and even inventory costs.
Assurance of true market value
The market value is the price that is both competitive and acceptable to the buyers. If the price is bid, this means that the true market value of the item is being given therefore; there is no way for the auctioneer or the seller not to get the price that is fair for the item.
Accelerated sale
Unlike when a car is sold individually or a foreclosed home is negotiated between the owner of the property, the broker and the willing buyer, items being auctioned only need a moderator to announce the item and the buyers will bid on it. This makes the sale both efficient and fast. The process eliminates the negotiation or the waiting process.
Accurate information
Unlike with the conventional way of selling on the open market, auctions give the seller the assurance that his property will be sold at a certain time.
Buyers are qualified
Registration is a typical part of any auction. The potential buyer has to first register an account that would enable him to bid on the auction and would give the seller the assurance that the potential buyers have the capacity to pay.
An item is considered sold once auctioned
Chances are the items will be bought once listed at an auction. The fact that it is being auctioned means that it has some good market value and this value could increase depending on the bidders. The buyers will always find good reasons to buy the item presented to them even if they may have no intention of doing so.
All buyers are willing to bid
There is no other way for potential buyers to get the item they want but to bid at an auction. Thus the seller has the assurance that his items and properties will be sold at the end of the day.
Quick disposal of items
Probably one of the fastest ways to sell things, auction gives the sellers the advantage of fast disposal of the merchandise. Once an item is presented to the crowd, someone will always be willing to get hold of it. This then will cut the expenses on maintenance, taxes, and even inventory costs.
Assurance of true market value
The market value is the price that is both competitive and acceptable to the buyers. If the price is bid, this means that the true market value of the item is being given therefore; there is no way for the auctioneer or the seller not to get the price that is fair for the item.
Accelerated sale
Unlike when a car is sold individually or a foreclosed home is negotiated between the owner of the property, the broker and the willing buyer, items being auctioned only need a moderator to announce the item and the buyers will bid on it. This makes the sale both efficient and fast. The process eliminates the negotiation or the waiting process.
Accurate information
Unlike with the conventional way of selling on the open market, auctions give the seller the assurance that his property will be sold at a certain time.
Buyers are qualified
Registration is a typical part of any auction. The potential buyer has to first register an account that would enable him to bid on the auction and would give the seller the assurance that the potential buyers have the capacity to pay.
4/17/09
Advantages of Auctions for the Buyers
Why is there such hype regarding auctions? What's so good about them and what do people get from them that they don't normally get from other forms of buying?
Half of Americans, according to the study conducted by the National Auctioneers Association, have seen or attended an auction. This means that auctions are fairly popular among Americans and that the majority of people often prefer to trade through auctions, like in EBay and other live auctions rather than in the actual market.
Why? Because first, it is one of the most exciting ways to get the best deals (according to the 83% of all the people surveyed), second, great value for items is often offered to the buyers (this according to more than half of the respondents), and third, buyers are satisfied with the prices they pay at the auctions. Apart from these reasons, there are several others including the following:
Speed of buying
Most types of auctions are timed so the buyers are pressured to bid their price before the time runs out. This alone gives the excitement for both observers and bidders. Also, buying at an auction offers a fast transaction. Its core rule: give the highest bid and you win the item.
Chance for the buyer to establish his own price
While items at auction usually have reserve prices, auctions still let the bidders decide the highest and lowest value of the items. Thus, the control for pricing is given to the bidders and the real market value of the merchandise is evaluated.
Getting the fair market value
Fair market value comes from the transactions between a willing buyer and a willing seller. In the structure of auction, it is obvious that people participating in it, the sellers and the buyers, get the fair market value of the property or the item they are buying.
Guaranteed sale for both the buyer and the seller
Bidders come to auction with the intent of buying an item and sellers go to auctions to make money off their property. Thus, both parties have the assurance that they will have their intentions satisfied. So it is rare, if not impossible, to have cases where any of the two individuals back out from the transaction since an agreement at auction is legally binding.
It eliminates tedious negotiations Auctions do not need negotiations between buyers and sellers. If the bidder wins the highest bid, he gets the item
Half of Americans, according to the study conducted by the National Auctioneers Association, have seen or attended an auction. This means that auctions are fairly popular among Americans and that the majority of people often prefer to trade through auctions, like in EBay and other live auctions rather than in the actual market.
Why? Because first, it is one of the most exciting ways to get the best deals (according to the 83% of all the people surveyed), second, great value for items is often offered to the buyers (this according to more than half of the respondents), and third, buyers are satisfied with the prices they pay at the auctions. Apart from these reasons, there are several others including the following:
Speed of buying
Most types of auctions are timed so the buyers are pressured to bid their price before the time runs out. This alone gives the excitement for both observers and bidders. Also, buying at an auction offers a fast transaction. Its core rule: give the highest bid and you win the item.
Chance for the buyer to establish his own price
While items at auction usually have reserve prices, auctions still let the bidders decide the highest and lowest value of the items. Thus, the control for pricing is given to the bidders and the real market value of the merchandise is evaluated.
Getting the fair market value
Fair market value comes from the transactions between a willing buyer and a willing seller. In the structure of auction, it is obvious that people participating in it, the sellers and the buyers, get the fair market value of the property or the item they are buying.
Guaranteed sale for both the buyer and the seller
Bidders come to auction with the intent of buying an item and sellers go to auctions to make money off their property. Thus, both parties have the assurance that they will have their intentions satisfied. So it is rare, if not impossible, to have cases where any of the two individuals back out from the transaction since an agreement at auction is legally binding.
It eliminates tedious negotiations Auctions do not need negotiations between buyers and sellers. If the bidder wins the highest bid, he gets the item
4/15/09
Do Estate Auctions Interest You?
Estate auctions seem to be the top-rated places for scouring items that may fit your house. If you are out to seek an odd chair, an old designer side table that could be turned into a center piece for your house or an antique cabinet that could be refurbished for your stylish home, estate auctions may offer you better deals than antique furniture shops.
You never know what you are going to find for sale during an estate auction and what adds to the thrill of joining such. If you are someone who makes the most out of anything you see, you may find that an estate auction is more satisfying than you first expected.
But what will assure you of a great deal with an estate auction?
Going to the auction site an hour or half hour earlier than the actual auction schedule. This will give you time to inspect the items that you might want to bid on. Also, using the inspection period will let you see close the items that you want to buy. You can also evaluate the estimated price for each item, thus helping you decide on the ceiling price you'll give it.
While inspecting, look for the labels or manufacturers of the items you want. These will give you an approximation of its value.
Bid later in the auction. The crowd is usually largest at the beginning of the auctions. If you do not want to compete with other bidders, it is best to wait for the last parts of the auction when the crowd is thinning out. This works most effectively among people who are more interested in non-furniture items.
Do not join the bidding wars. If you want to buy a certain piece of furniture so badly, chances are there is someone in the crowd who wants it too. You'll know this for certain if someone in the crowd tries to outbid you.
An item is only as good as its original value.
You never know what you are going to find for sale during an estate auction and what adds to the thrill of joining such. If you are someone who makes the most out of anything you see, you may find that an estate auction is more satisfying than you first expected.
But what will assure you of a great deal with an estate auction?
Going to the auction site an hour or half hour earlier than the actual auction schedule. This will give you time to inspect the items that you might want to bid on. Also, using the inspection period will let you see close the items that you want to buy. You can also evaluate the estimated price for each item, thus helping you decide on the ceiling price you'll give it.
While inspecting, look for the labels or manufacturers of the items you want. These will give you an approximation of its value.
Bid later in the auction. The crowd is usually largest at the beginning of the auctions. If you do not want to compete with other bidders, it is best to wait for the last parts of the auction when the crowd is thinning out. This works most effectively among people who are more interested in non-furniture items.
Do not join the bidding wars. If you want to buy a certain piece of furniture so badly, chances are there is someone in the crowd who wants it too. You'll know this for certain if someone in the crowd tries to outbid you.
An item is only as good as its original value.
4/14/09
Good And Bad Deals In Car Auctions
Good and bad deals in car auctions have their equal share. Some first time buyers who've had a good deal may call it luck, but others who are more experienced at car auctions are just responding to some good opportunities. Here are the pros and cons of buying at an auto auction:
PROS
People with limited budgets and who want to buy a car find that there are a lot of choices in car auctions as compared with conventional car distributors and dealers.
For regular cars sold at auctions, buyers could secure reliable if not the best cars at very cheap prices. In most cases, organizers make it a point that the cars they sell are checked well for any damages or malfunctions and are in good condition.
At car auctions, even the best and most popular models are being sold with an added perk- they come at lower prices.
For car collectors, there are available auctions where vintage cars are featured. This may be a good opportunity to obtain some of the best cars without having to go through negotiations with owners who are unwilling to sell their vintage cars. Also, car auctions present great opportunities for buying really old cars without having to pay premium prices for the "vintage tag".
CONS
Cars at auctions are sold at relatively lower prices because the items are typically second-hand autos repossessed by the mortgagors or the federal government. A lot of cars at auction are not in mint condition, many of them even have mechanical flaws. Some cars that are being auctioned are "hot" cars, meaning these may be smuggled or stolen. Chances are you'll have problems regarding the car's ownership.
Unlike autos being sold at regular distributors and dealers, those sold at auction usually do not have insurance coverage or warranties.
Different car buyers have different opinions on whether it is good or bad to buy a car at an auction.
PROS
People with limited budgets and who want to buy a car find that there are a lot of choices in car auctions as compared with conventional car distributors and dealers.
For regular cars sold at auctions, buyers could secure reliable if not the best cars at very cheap prices. In most cases, organizers make it a point that the cars they sell are checked well for any damages or malfunctions and are in good condition.
At car auctions, even the best and most popular models are being sold with an added perk- they come at lower prices.
For car collectors, there are available auctions where vintage cars are featured. This may be a good opportunity to obtain some of the best cars without having to go through negotiations with owners who are unwilling to sell their vintage cars. Also, car auctions present great opportunities for buying really old cars without having to pay premium prices for the "vintage tag".
CONS
Cars at auctions are sold at relatively lower prices because the items are typically second-hand autos repossessed by the mortgagors or the federal government. A lot of cars at auction are not in mint condition, many of them even have mechanical flaws. Some cars that are being auctioned are "hot" cars, meaning these may be smuggled or stolen. Chances are you'll have problems regarding the car's ownership.
Unlike autos being sold at regular distributors and dealers, those sold at auction usually do not have insurance coverage or warranties.
Different car buyers have different opinions on whether it is good or bad to buy a car at an auction.
4/12/09
Guideline to Auctions for Bidder
This is a compilation of helpful tricks that could improve your bidding power.
How not to overbid.
Overbidding is a common problem among people participating at auctions. In sealed and silent bidding, it is easy to overbid since nobody else knows exactly how high or low the bids are. To ensure that someone wins the bids, he should give it his highest estimated value. On the other hand, the behavior of the crowd and the excitement encouraged by the auctioneer over the properties or items are enough to make people bid excessively.
How to establish your price limit.
Realistic price limits could be made through critically listening to people's advice, from searching the same items online and through researching some information regarding the property or the item being auctioned. With enough information, you could come up with an estimated value of the merchandise. You don't have to be an auction guru to know how much an item is worth though.
It all boils down to research. Doing your homework, getting hold of the actual auction catalogue or inspecting the items during their viewing period could help a lot not only on deciding which item to get but also the price limit you give to each item.
Maximize your time
Some auctions will give you sufficient time to inspect the item, some provide the catalogues. Whichever method is being used in the auction you are interested in, you should try to maximize your time by coming in the auction site early. By doing so you might get a chance to talk to the auction organizers and inquire about the items.
Attend some auctions beforehand
People who are serious about auctions try to find as much information about them as they can. One good way is to witness live auctions personally. Initially, you should not place any bid- no matter how small the amount.
Observe the crowd.
Bidders have different personalities- each of which work for their buying styles. Work out the differences and similarities among bidders and develop a style of your own. Take note of the style of the more successful ones.
How not to overbid.
Overbidding is a common problem among people participating at auctions. In sealed and silent bidding, it is easy to overbid since nobody else knows exactly how high or low the bids are. To ensure that someone wins the bids, he should give it his highest estimated value. On the other hand, the behavior of the crowd and the excitement encouraged by the auctioneer over the properties or items are enough to make people bid excessively.
How to establish your price limit.
Realistic price limits could be made through critically listening to people's advice, from searching the same items online and through researching some information regarding the property or the item being auctioned. With enough information, you could come up with an estimated value of the merchandise. You don't have to be an auction guru to know how much an item is worth though.
It all boils down to research. Doing your homework, getting hold of the actual auction catalogue or inspecting the items during their viewing period could help a lot not only on deciding which item to get but also the price limit you give to each item.
Maximize your time
Some auctions will give you sufficient time to inspect the item, some provide the catalogues. Whichever method is being used in the auction you are interested in, you should try to maximize your time by coming in the auction site early. By doing so you might get a chance to talk to the auction organizers and inquire about the items.
Attend some auctions beforehand
People who are serious about auctions try to find as much information about them as they can. One good way is to witness live auctions personally. Initially, you should not place any bid- no matter how small the amount.
Observe the crowd.
Bidders have different personalities- each of which work for their buying styles. Work out the differences and similarities among bidders and develop a style of your own. Take note of the style of the more successful ones.
4/11/09
Auction Guide For First Time Bidders
When you are going to an auction for the first time, there are specific things that you should know :
1. Obtain an auction brochure or catalogue. Do this at least a day before the auction date. This ensures that the goods for sale are what you need.
2. From the auction catalogue, identify what you want. If it's a car, do your research on its current market value online. Once you know its value on the market, you can set your budget.
3. At the day of the sale, phone in the auction house and confirm if the auction is going as scheduled as certain auctions can be subjected to last minute cancellations or rescheduling. Phoning in to confirm if the property or an item you are interested in is still on sale is something you should do before going to the auction house as well.
4. Once you arrive at the auction house, register to obtain a bidding number. You will be asked for your name, address, and contact number and will be asked to pay a deposit or pay a certain amount for the registration fee.
5. Come early. This allows you to inspect the auction goods properly before the bidding starts. An auction brochure may be helpful in providing information of the goods for sale; but physically inspecting the items before the sale allows you to determine if the goods are really worth any amount of your money. Do an ocular inspection, days before the scheduled auction if it is a piece of property.
6. Each item is designated with a lot number for easy reference. Take note of these numbers when you are inspecting the goods. The same number will be called during the actual auction.
7. Before the auction starts, the auctioneer will explain the rules. Listen attentively and keep your ears open for additional information on the goods up for bid.
8. Once the auctioneer calls for the starting bid, the bidding process begins. Each item may be sold within seconds. Once the lot number you are interested in is called, be alert and stay focus. Do not bid an amount you cannot afford. Stay within your set budget. Most first time bidders get carried away and bid higher than what they have originally planned.
9. If you have won an item, you will be asked to pay in partial or in full and to give your personal details the day of the auction.
Once it is all settled, you will be asked to sign an auction memorandum. The deal is done!
4/9/09
A Quick Guide in Hosting a Fundraising Auction
Any successful event needs careful planning. If you are hosting a fundraising auction, you should sit down, talk with your team, and plan for the event.
Gather the Auction Goods
Items that will be put on sale may not be expensive and of the same kind. They can be things like handicrafts, trips, commemorative items, sports or concert tickets, and gift certificates among others.
Set the stage
A fundraising auction can be mixed with other event such as Sunday garden cookout, or spaghetti a dinner, or wine and cheese party. Prepare everything from food, chairs, tables, bid numbers, and stage. Your venue should be ideal to the event. If you are holding it indoors, decorations are essential.
If you are holding it outdoors, check the weather forecast. Have a backup plan in case something goes wrong. The last thing you would want is for the event to be suspended due to weather or any avoidable disaster. The people that will attend the auction are the people you will expect to bid the give away money without any hesitations. So when inviting people, it is important to talk to them personally and explain what the auction is all about, its goals and mission. Understanding that the proceeds of the auction will go to a good cause will increase the possibility of getting higher bids. Do not forget to print out invitations and auction brochures or catalogues to be given away to the invited people before the bidding starts.
Get a Good Auctioneer
One secret to a successful fundraising auction is to have a lively auctioneer. Because an enthused crowd may buy anything, even the most unlovable object will be sold for a considerable amount. Get it from your group member who has the talent and skill to connect with anyone.
Hosting an action is one of the most effective ways to raise money for a good cause. If you are tasked to prepare for one, use this as a guide to make sure that the auction is a success.
Gather the Auction Goods
Items that will be put on sale may not be expensive and of the same kind. They can be things like handicrafts, trips, commemorative items, sports or concert tickets, and gift certificates among others.
Set the stage
A fundraising auction can be mixed with other event such as Sunday garden cookout, or spaghetti a dinner, or wine and cheese party. Prepare everything from food, chairs, tables, bid numbers, and stage. Your venue should be ideal to the event. If you are holding it indoors, decorations are essential.
If you are holding it outdoors, check the weather forecast. Have a backup plan in case something goes wrong. The last thing you would want is for the event to be suspended due to weather or any avoidable disaster. The people that will attend the auction are the people you will expect to bid the give away money without any hesitations. So when inviting people, it is important to talk to them personally and explain what the auction is all about, its goals and mission. Understanding that the proceeds of the auction will go to a good cause will increase the possibility of getting higher bids. Do not forget to print out invitations and auction brochures or catalogues to be given away to the invited people before the bidding starts.
Get a Good Auctioneer
One secret to a successful fundraising auction is to have a lively auctioneer. Because an enthused crowd may buy anything, even the most unlovable object will be sold for a considerable amount. Get it from your group member who has the talent and skill to connect with anyone.
Hosting an action is one of the most effective ways to raise money for a good cause. If you are tasked to prepare for one, use this as a guide to make sure that the auction is a success.
4/8/09
Understanding How Silent Auction Work
Different from the usual auction wherein an auctioneer calls the price from people who raise their hands or numbers to bid for a particular lot. Silent auction is often the preferred way of raising money as it does not detract people from the event.
At a silent auction, a table or a display that shows the items or services on sale is set up for the people to see. Some items or services may have a minimum bid as they may be of high value. Some silent auctions have one receptacle to hold the bids for all the goods on sale; others have individual container for each item. The display gives the chance for the bidders to view all the items during the event and select which among the items they would like to bid.
At a silent auction, previous bids can be shown publicly through a bidding sheet. This allows other bidders to know that they need to bid higher in order to bring home the item. This also gives the bidder a chance to review the current bidding sheet and place their final offer prior to the closing of the auction.
Similarly, the bids at the silent auction can be kept privately throughout the event. All the bids will be calculated at the end of the auction and the highest bidder wins the item for whatever amount he or she has written.
A silent auction has an advantage over the regular form of auction. Since it is mostly used at charity events, silent auction eliminates the need to hire a professional charity auctioneer.
A regular auction capitalizes on impulse of the buyers to bid for the items in a very short amount of time. Silent auctions on the other hand allows bidders to consider the amount of their bids longer.
More often than not, charitable events use both silent auctions and regular auctions to take full advantage of both systems.
At a silent auction, a table or a display that shows the items or services on sale is set up for the people to see. Some items or services may have a minimum bid as they may be of high value. Some silent auctions have one receptacle to hold the bids for all the goods on sale; others have individual container for each item. The display gives the chance for the bidders to view all the items during the event and select which among the items they would like to bid.
At a silent auction, previous bids can be shown publicly through a bidding sheet. This allows other bidders to know that they need to bid higher in order to bring home the item. This also gives the bidder a chance to review the current bidding sheet and place their final offer prior to the closing of the auction.
Similarly, the bids at the silent auction can be kept privately throughout the event. All the bids will be calculated at the end of the auction and the highest bidder wins the item for whatever amount he or she has written.
A silent auction has an advantage over the regular form of auction. Since it is mostly used at charity events, silent auction eliminates the need to hire a professional charity auctioneer.
A regular auction capitalizes on impulse of the buyers to bid for the items in a very short amount of time. Silent auctions on the other hand allows bidders to consider the amount of their bids longer.
More often than not, charitable events use both silent auctions and regular auctions to take full advantage of both systems.
4/7/09
Types of Government Auctions
Government auctions, if you are the type of person who wants to find just about everything on sale, is among the best options you have. Government auctions showcase almost all types of items and properties- from earrings to multi-million dollar properties.
With that in mind, it is easy to understand that government auctions come in many types. Each of which differ in the manner of how the government obtained the items or the properties and the manner of disposal the government uses to sold off the properties to the public while getting a profit in return. Here are some of the types of government auctions:
GOVERNMENT SURPLUS AUCTIONS
Also known as the GSA Auctions, is the type where the Government sells everything that it no longer needs. Typically, the items here are second hand but they are, in most cases, top caliber and buyers can get them at excessively low prices. Common items found in GSA auctions are automobiles, jewelry and office equipment. However, surplus buildings, real estate and properties are also sold here.
Many people doubt though whether they should buy too-good-to-be-true items in such auctions.
SEIZED PROPERTY AUCTIONS
Mostly selling confiscated properties, seized property auctions sell properties and items that were foreclosed by the government or taken from the original owners due to tax, financial and other related issues. However, seized properties may also come from confiscations from illegal activities like drug dealing or smuggling.
Seized property auctions could also stem from tax seizures. A house, for example, could be seized by the government if the owner fails to pay his taxes, mortgages and bills. This could extend to other properties like clothing, cars, and real estate.
Custom seizure auction, another type of seized properties auction, sells goods that could come from: a) smugglers, b) people who were not able to present enough and detailed information of the merchandise, and c) people who came from other countries bringing along with them unauthorized merchandise.
Buying from government auctions offers you some of the best pieces of items at a very (very) low price. If you want to find the best deals, try to research the schedules of government auctions.
With that in mind, it is easy to understand that government auctions come in many types. Each of which differ in the manner of how the government obtained the items or the properties and the manner of disposal the government uses to sold off the properties to the public while getting a profit in return. Here are some of the types of government auctions:
GOVERNMENT SURPLUS AUCTIONS
Also known as the GSA Auctions, is the type where the Government sells everything that it no longer needs. Typically, the items here are second hand but they are, in most cases, top caliber and buyers can get them at excessively low prices. Common items found in GSA auctions are automobiles, jewelry and office equipment. However, surplus buildings, real estate and properties are also sold here.
Many people doubt though whether they should buy too-good-to-be-true items in such auctions.
SEIZED PROPERTY AUCTIONS
Mostly selling confiscated properties, seized property auctions sell properties and items that were foreclosed by the government or taken from the original owners due to tax, financial and other related issues. However, seized properties may also come from confiscations from illegal activities like drug dealing or smuggling.
Seized property auctions could also stem from tax seizures. A house, for example, could be seized by the government if the owner fails to pay his taxes, mortgages and bills. This could extend to other properties like clothing, cars, and real estate.
Custom seizure auction, another type of seized properties auction, sells goods that could come from: a) smugglers, b) people who were not able to present enough and detailed information of the merchandise, and c) people who came from other countries bringing along with them unauthorized merchandise.
Buying from government auctions offers you some of the best pieces of items at a very (very) low price. If you want to find the best deals, try to research the schedules of government auctions.
4/5/09
Types of Auctions
English Auction:
This type of auction is used at English auction houses like Phillips, Sotheby's, and Christie's. The process starts when the auctioneer announces the item and the minimum bid. Individuals openly try to outbid each other wherein each bid is higher than the previous one. The item is sold when the 'buy-out' price is reached or when there is no other person willing to place a higher bid. The 'buy-out' price is a pre-determined amount that is set by the seller.
In other cases, 'absentee bidding' is accepted wherein an individual will cast his or her bid online or through a telephone.
In an English auction, a 'reserve' price may be set. This is the lowest amount at which the seller is willing to sell the item. This gives the seller the right to refuse the sale if the final bid does not reach the reserve price.
One variant of the English auction is the silent auction wherein people can write down their bids together with their name on a piece of paper. At the end of the auction, the bids will be calculated and the highest bidder wins the item.
Dutch Auction:
This is a type of auction where the auctioneer begins by announcing the highest asking price. The amount is then lowered until someone is willing to buy the item. The bidder pays for the last announced price. This type of auction is convenient if the seller wants to sell the goods quickly since the process requires just a single bid to get a sale.
Chinese Auction:
This is basically an auction and a raffle combined. At Chinese auction, the bidders are not the ones who will call the price. Instead, the bidders will buy a ticker or tickets and place them inside the "hat" from which the winners will be drawn for a specific item. The bidders can buy as much tickets as they want to increase their chances of winning. It is unclear whether or not this type of auction originates in China but for sure, the term is more likely to come from "chance auction".
Sealed auction:
This is a form of auction where participants place their bids in a concealed way, usually in an envelope. The highest bidder wins and pays the amount of his bid to the seller. A similar version, called the second-price sealed auction is a type of auction where the highest bidder wins but pays the price of the second highest bid.
All-pay Auction:
This is a type of auction where all the bidders must pay for the amount they bid regardless of whether they win or not. The highest bidder wins the item.
This type of auction is used at English auction houses like Phillips, Sotheby's, and Christie's. The process starts when the auctioneer announces the item and the minimum bid. Individuals openly try to outbid each other wherein each bid is higher than the previous one. The item is sold when the 'buy-out' price is reached or when there is no other person willing to place a higher bid. The 'buy-out' price is a pre-determined amount that is set by the seller.
In other cases, 'absentee bidding' is accepted wherein an individual will cast his or her bid online or through a telephone.
In an English auction, a 'reserve' price may be set. This is the lowest amount at which the seller is willing to sell the item. This gives the seller the right to refuse the sale if the final bid does not reach the reserve price.
One variant of the English auction is the silent auction wherein people can write down their bids together with their name on a piece of paper. At the end of the auction, the bids will be calculated and the highest bidder wins the item.
Dutch Auction:
This is a type of auction where the auctioneer begins by announcing the highest asking price. The amount is then lowered until someone is willing to buy the item. The bidder pays for the last announced price. This type of auction is convenient if the seller wants to sell the goods quickly since the process requires just a single bid to get a sale.
Chinese Auction:
This is basically an auction and a raffle combined. At Chinese auction, the bidders are not the ones who will call the price. Instead, the bidders will buy a ticker or tickets and place them inside the "hat" from which the winners will be drawn for a specific item. The bidders can buy as much tickets as they want to increase their chances of winning. It is unclear whether or not this type of auction originates in China but for sure, the term is more likely to come from "chance auction".
Sealed auction:
This is a form of auction where participants place their bids in a concealed way, usually in an envelope. The highest bidder wins and pays the amount of his bid to the seller. A similar version, called the second-price sealed auction is a type of auction where the highest bidder wins but pays the price of the second highest bid.
All-pay Auction:
This is a type of auction where all the bidders must pay for the amount they bid regardless of whether they win or not. The highest bidder wins the item.
4/4/09
How Does Auction Work
Auction is not like buying something from the department store- you get it, grab the item, go to the cashier and pay for it then get out of the store with the item at hand. In auctions, there is fierce competition especially during bidding wars.
So how does auction work?
Registration
It is a must for auctioneers to have their potential bidders register before they participate in the bidding. Typical information required are personal information such as name, address and bidding history if applicable.
Some auctioneers require large deposits, thus anyone who wants to participate in an auction should be well-equipped with knowledge on the particular type of auction.
Afterwards, the bidder will be given a bidding number which is often used to substitute for the name of the bidder as the bidding happens.
Bidding proper
Each bidder should be given a catalogue which is a list that contains details regarding the items being auctioned. This allows the potential buyer to view the items he wants to bid on before the auction begins. For some auctions that provide catalogues though, viewing is not allowed. To be sure, it is best to confirm details regarding viewing time and catalogues before the date of the auction.
After this, the auctioneer will announce the item being auctioned and some important details regarding the item which is usually tied with the information given on the catalog. The auctioneer will then suggest a starting bid- this is not necessarily the lowest available price for the item. In most cases, the first bid usually begins at a price below the starting bid.
On the other hand, if the item has a set reserve price, the bidding will usually start above this price until it reaches the reserve price. For guiding the bidders, the catalogues usually have guide prices.
After the announcement of the starting price, the bidders are free to outbid each other until the highest bid is reached. Bidders typically get the attention of the auctioneer by raising their hands or their bidding numbers.
The auctioneer will normally return to the most active bidders for confirmation of bids. If the bidder wishes to withdraw from the bidding, he can shake his head. The one with the highest bid will win the item.
After the bidding, the final bidder will pay a deposit according to the terms and conditions of the purchase. Payment methods are normally stated in the auction catalogue.
So how does auction work?
Registration
It is a must for auctioneers to have their potential bidders register before they participate in the bidding. Typical information required are personal information such as name, address and bidding history if applicable.
Some auctioneers require large deposits, thus anyone who wants to participate in an auction should be well-equipped with knowledge on the particular type of auction.
Afterwards, the bidder will be given a bidding number which is often used to substitute for the name of the bidder as the bidding happens.
Bidding proper
Each bidder should be given a catalogue which is a list that contains details regarding the items being auctioned. This allows the potential buyer to view the items he wants to bid on before the auction begins. For some auctions that provide catalogues though, viewing is not allowed. To be sure, it is best to confirm details regarding viewing time and catalogues before the date of the auction.
After this, the auctioneer will announce the item being auctioned and some important details regarding the item which is usually tied with the information given on the catalog. The auctioneer will then suggest a starting bid- this is not necessarily the lowest available price for the item. In most cases, the first bid usually begins at a price below the starting bid.
On the other hand, if the item has a set reserve price, the bidding will usually start above this price until it reaches the reserve price. For guiding the bidders, the catalogues usually have guide prices.
After the announcement of the starting price, the bidders are free to outbid each other until the highest bid is reached. Bidders typically get the attention of the auctioneer by raising their hands or their bidding numbers.
The auctioneer will normally return to the most active bidders for confirmation of bids. If the bidder wishes to withdraw from the bidding, he can shake his head. The one with the highest bid will win the item.
After the bidding, the final bidder will pay a deposit according to the terms and conditions of the purchase. Payment methods are normally stated in the auction catalogue.
4/3/09
Auction
Executive Summarize From Wikipedia, the free encyclopedia
An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the winning bidder. In economic theory, an auction may refer to any mechanism or set of trading rules for exchange.
There are several variations on the basic auction form, including time limits, minimum or maximum limits on bid prices, and special rules for determining the winning bidder(s) and sale price(s). Participants in an auction may or may not know the identities or actions of other participants. Depending on the auction, bidders may participate in person or remotely through a variety of means, including telephone and the internet. The seller usually pays a commission to the auctioneer or auction company based on a percentage of the final sale price.
History of the auction
The word "auction" is derived from the Latin augēre, which means "to increase" or "augment".
For most of history, auctions have been a relatively uncommon way to negotiate the exchange of goods and commodities. According to Herodotus, in Babylon auctions of women for marriage were held annually. It was considered illegal to allow a daughter to be sold outside of the auction method.
During the Roman Empire, following military victory, Roman soldiers would often drive a spear into the ground around which the spoils of war were left, to be auctioned off. Later slaves, often captured as the "spoils of war", were auctioned in the forum under the sign of the spear, with the proceeds of sale going towards the war effort.
The Romans also used auctions to liquidate the assets of debtors whose property had been confiscated. One of the most significant historical auctions occurred in the year 193 A.D. when the entire Roman Empire was put on the auction block by the Praetorian Guard. This auction began by lighting a candle after which bids were offered in ascending order until the candle spluttered out. The high bid at the time the candle extinguished itself won the auction.
The oldest auction house in world is Stockholm Auction House (Stockholms Auktionsverk). In some cases these catalogs were elaborate works of art themselves, containing considerable detail about the items being auctioned.Sotheby's, now the world's second-largest auction house, held its first auction in 1744. Christie's, now the world's largest auction house, was established around 1766. Other early auction houses that are still in operation include Dorotheum (1707), Bonhams (1793), Phillips de Pury & Company (1796), Freeman's (1805) and Lyon & Turnbull (1826).
During the American civil war goods seized by armies were sold at auction by the Colonel of the division.
An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the winning bidder. In economic theory, an auction may refer to any mechanism or set of trading rules for exchange.
There are several variations on the basic auction form, including time limits, minimum or maximum limits on bid prices, and special rules for determining the winning bidder(s) and sale price(s). Participants in an auction may or may not know the identities or actions of other participants. Depending on the auction, bidders may participate in person or remotely through a variety of means, including telephone and the internet. The seller usually pays a commission to the auctioneer or auction company based on a percentage of the final sale price.
History of the auction
The word "auction" is derived from the Latin augēre, which means "to increase" or "augment".
For most of history, auctions have been a relatively uncommon way to negotiate the exchange of goods and commodities. According to Herodotus, in Babylon auctions of women for marriage were held annually. It was considered illegal to allow a daughter to be sold outside of the auction method.
During the Roman Empire, following military victory, Roman soldiers would often drive a spear into the ground around which the spoils of war were left, to be auctioned off. Later slaves, often captured as the "spoils of war", were auctioned in the forum under the sign of the spear, with the proceeds of sale going towards the war effort.
The Romans also used auctions to liquidate the assets of debtors whose property had been confiscated. One of the most significant historical auctions occurred in the year 193 A.D. when the entire Roman Empire was put on the auction block by the Praetorian Guard. This auction began by lighting a candle after which bids were offered in ascending order until the candle spluttered out. The high bid at the time the candle extinguished itself won the auction.
The oldest auction house in world is Stockholm Auction House (Stockholms Auktionsverk). In some cases these catalogs were elaborate works of art themselves, containing considerable detail about the items being auctioned.Sotheby's, now the world's second-largest auction house, held its first auction in 1744. Christie's, now the world's largest auction house, was established around 1766. Other early auction houses that are still in operation include Dorotheum (1707), Bonhams (1793), Phillips de Pury & Company (1796), Freeman's (1805) and Lyon & Turnbull (1826).
During the American civil war goods seized by armies were sold at auction by the Colonel of the division.
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