Sold: The Secrets of Auction Success

If you're a bargain hunter looking for great deals on unique items, try your local auction sale. Bidding is not only fun, it's a great way to bag a big bargain.

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.

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 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, hired for a flat fee or a predetermined percentage of the proceeds, lead most auctions. These professionals are able to offer information about the community and its buying preferences, as well as providing 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.

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:

Author Ardis Myles enjoys writing articles for numerous Internet sites, on top home based business and driver downloads topics.

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