Auction: Everything You Need To Know

When it comes to our purchases, we only want what is best. And one of the best places to go to when you want to cop the best item is an auction. However, despite the good deals you can get from auctions, many people are hesitant to participate in an auction, and this is due to the fact that when we think of auctions, the first things that come to mind are crowded auction rooms filled with elite people bidding after expensive artworks and antiques. However, auctions are evolving and this calls for better reasons to participate in them. As a matter of fact, the market in the auction world is constantly expanding, allowing many bidders to join the auction.

If you are a beginner in the world of auctions, you are in the right place. Here’s everything you need to know about it:

What are auctions?

An auction is a sales event of selling and buying items by setting bids and then selling the items to the highest bidder. An auction is best known for placing and determining the value of the item being bid or sold. And so, if the seller has rare items or even properties that he wants to sell, he can have them on auctions and be offered up for bids. Items being sold in an auction are not only limited to the aforementioned; the item can also be antiques, collectibles, fine art, and even luxury real estate.

For a little trip down the lane, it has been said that auctions’ long history started in ancient Greece, approximately 500 BC, when women were auctioned off for marriage. In the United States, early auctions were used for the sole purpose of selling and buying slaves, lands, and farm products. Of course, many things have changed since then. In most of the auctions happening nowadays, people are not being auctioned just like slaves and women. But the tradition goes on because it is the fastest way to buy and sell goods and services as well as the competitive bidding that bidders enjoy.

How do auctions work? What is an auction process?

Usually, before an auction happens, the participating bidders will receive a notification concerning a preview show. This is an opportunity given to potential buyers to examine the items on sale. The notification is given depending on the type of auction. If the auction is solely digital, there will be an email notification sent to the potential bidders about the preview a few days prior to the day of the auction itself. If the auction is to be done live, a day before or a few hours before the auction starts, the preview show happens.

Once the potential bidders are done with the preview show, they will proceed to register with the auctioneer. This is when the bidders are asked about their personal details and given a bidder card with a number printed on it to identify each bidder. After the said registration, the bidders will hear a bell sound from the auctioneer which signals the beginning of the auction. This is when the auctioneer will present the item to the potential buyers, give a brief description of the item, and starts bidding the price.

For other types of auctions, the auctioneer will set a minimum price for the item being sold and the bidding for the potential buyers will start from there. The bidders will then tell their bidding price with each bid being higher than what was previously mentioned. The potential buyers will have to use their bidding cards to announce their bidding prices. This is for the benefit of the auctioneer who leads the auction and to identify the person who is making the bid. The bidding will end once there are no more bids. The highest bidder will then get the item.

Tips on going to auctions

Auctions can be overwhelming, especially once you get inside the auction house and get to see all the items being sold as well as the other bidders who will participate in the auction. It can also be thrilling as the bidding becomes intense, especially if the item being sold is rare or valuable. So, whether you are a beginner in the world of auctions or you have been participating for so long, here are some tips that you can take note:

1. Familiarize yourself with the trade

Whether you are a seller or a bidder, you have to learn the roundabouts of how auctions work. This includes learning the most common jargon used as well as the various types of auctions. This will help you not be confused or out of place once you get there. Words such as auctioneer, hammer price, reserve price, bid increment, lot, and valuation are among the things you should familiarize yourself with. Moreover, you may also observe how the trade works first. Consider getting to know the people who come and go to auction houses. Observe carefully and learn so you will be able to familiarize yourself with their bidding strategies and who knows? You may be able to develop your own strategy as well once you get the hang of it.

2. Do your homework

More often than not, auctioneers do send notifications about preview shows before the auction starts. Use this time to get to know the value of the lot or items being auctioned. You may also visit auction houses to observe bidders and their bidding strategies. Remember: the goal is for you to win and cop the item you are eyeing for. This will only be possible if you are prepared enough before you go to the auction house and bid with other bidders.

3. Get there early and be at the frontline

To arrive early at the auction house and position yourself at the front will give you numerous advantages. First things first, you have the advantage of finding the best spot to place yourself. It is advisable to sit or stand in the front row so you will be able to see clearly the item as well as hear the auctioneer and keep track of the bidding prices easily. This is also a good strategy to inform yourself about the number of bidders you will be competing against.

4. Be confident

The moment you enter the auction house, you must project a confident image. This is not to intimidate other bidders but to give affirmation to yourself that you will get the business done. Consider standing tall matched with unwavering confidence. This is also to shake off the nervousness you feel. Keep also in mind that other bidders are examining you as well so make sure that your body languages evoke confidence. Above all else, have fun.

Conclusion

Going to auction houses is fun, and one should try it once in a while, especially if you are after the best deals. While there are auctions exclusively for luxury real estate, you may also consider site visits offered by luxury real estate developments like Brittany Corporation. If you are somewhere near Laguna, Brittany Sta. Rosa offers you luxury house and lot properties which are as beautiful as the deals you see in auction houses but much more luxurious in the strictest sense of the word. For appointment, check out this link.

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