If you are looking for your next car, real estate, clothes, jewelry, arts and antiques, household furniture, personal gadgets or anything you want to buy at bargain prices, you should be heading to any of the following places.
Police Auctions
Police confiscate items and impounds vehicles. But if the items are left unclaimed for a definite period of time or there is no possible way to trace the owners and return the items, they become auction goods. Police also seize properties and items associated to crimes people commit.
The police seized properties will then go to an auction. Police auctions are often held at local police agencies, federal law enforcement agencies, police departments, and county sheriff departments at specific time and date.
Government-Seized Auctions. Due to foreclosure and seizure laws, the government accumulates properties from private owners who were unable to pay their mortgages or loans. These will then become government property and will be put into auctions.
The Customs and Border Protection, US Department of Homeland Security, U.S. Postal Service, U.S. Marshals Service, U.S. Bankruptcy Court, Internal Revenue Service, and State Tax Department are some of the government agencies that hold government-seized property auctions.
Bank and Loan Companies. Bank and loan companies often repossess properties from owners who are unable to make loan payments. These repossessed properties range from real estate, vehicles to home furniture, become bank or loan company properties.
Since the cost of storage is high, bank and loan companies want to convert the repossessed properties into liquid assets right away. The best way to do it is through an auction. Bank and loan companies often announce auction schedules online, in office bulletins and in newspapers.
New and Used Car Dealers. In order to make a sale, new car dealers allow their costumers to trade-in their old cars for new ones. The old vehicle that was traded-in will then go to an auction. Used car dealers also employ the same system as other auction houses to generate sales.
While there are some used vehicles up for bidding, there are also very well-maintained vehicles you can buy at a price that is usually lower than their current market value.
Auction Companies. Auction companies sell a wide array of auction goods. Check newspaper ads, auction brochures, and the yellow pages. They often hold valuable information on when and where the next auction will be.
Definition of Auctions
Auctions can be described as follows:
Let multiple buyers bid competitively for products from individual suppliers. Suitable for hard-to-move goods such as used capital equipment (forklifts) and surplus or excess inventory. Prices only move up, but buyers can buy below list prices while sellers sell for more than a liquidator pays. Auctions are becoming a feature of many Net markets, but some use auctions as their primary market mechanism. Examples: AdAuction, TradeOut.com (used equipment).
Let multiple buyers bid competitively for products from individual suppliers. Suitable for hard-to-move goods such as used capital equipment (forklifts) and surplus or excess inventory. Prices only move up, but buyers can buy below list prices while sellers sell for more than a liquidator pays. Auctions are becoming a feature of many Net markets, but some use auctions as their primary market mechanism. Examples: AdAuction, TradeOut.com (used equipment).
Friday, January 2, 2009
What You REALLY Need to Know about Auto Auction
If you are planning to buy a car at an auction, you are likely to buy a car 'in its present condition'. This means that if in case you have discovered later on that the car you have bought has certain defects, no one will be held accountable for the expenses you made for the repairs (unless the contract gives a special condition or if the manufacturer warranty is still valid). Thus, it is your responsibility to know exactly what you are buying so that you will not regret your purchase if you encounter any problem.
First things first: do not expect perfection. No matter how much the final price is, expect the possibility that the car needs some repairs or some parts need to be replaced. To avoid frustration, include in your budget the amount that may cost you on possible repairs. Inspect the car's condition before bidding for it. It is wise to come early before the auction starts so that you have enough time to make your car selections. Make a shortlist and inspect them one by one.
Check the papers of the car you want to buy including the mileage, repair record, VIN, and safety ranking. Test drive if the auction house permits it.
Beforehand, do some research on the current market value of the car you are interested in. This will give you a clear idea on how much you will have to set aside on each car you see at the auction site.
The highest bid price you should set for each car of your choice must include the possible repair costs you may have. For example, the current market value of the car is $2,000 and the possible repair cost is at about $400, bid at the maximum of $2,000 minus the repair cost, minus the extra fee you have to pay at the end of the bidding.
Bring an expert if you can so that you can get an impartial assessment on the condition of the car you are interested in.
Things happen very quickly in a car auction so be attentive. A car can be sold within 30 seconds. And before you know it, there are no more available cars for you to bid on. Again, stay within your budget. You should not pay more than the actual market value of the car.
Remember, you can get great deals at a car auction but make sure that you know exactly what to expect in order to increase your chances of getting the best for your money.
First things first: do not expect perfection. No matter how much the final price is, expect the possibility that the car needs some repairs or some parts need to be replaced. To avoid frustration, include in your budget the amount that may cost you on possible repairs. Inspect the car's condition before bidding for it. It is wise to come early before the auction starts so that you have enough time to make your car selections. Make a shortlist and inspect them one by one.
Check the papers of the car you want to buy including the mileage, repair record, VIN, and safety ranking. Test drive if the auction house permits it.
Beforehand, do some research on the current market value of the car you are interested in. This will give you a clear idea on how much you will have to set aside on each car you see at the auction site.
The highest bid price you should set for each car of your choice must include the possible repair costs you may have. For example, the current market value of the car is $2,000 and the possible repair cost is at about $400, bid at the maximum of $2,000 minus the repair cost, minus the extra fee you have to pay at the end of the bidding.
Bring an expert if you can so that you can get an impartial assessment on the condition of the car you are interested in.
Things happen very quickly in a car auction so be attentive. A car can be sold within 30 seconds. And before you know it, there are no more available cars for you to bid on. Again, stay within your budget. You should not pay more than the actual market value of the car.
Remember, you can get great deals at a car auction but make sure that you know exactly what to expect in order to increase your chances of getting the best for your money.
Understanding How Silent Auction Work
A silent auction is a fundraising method that is commonly used at charity events. It is 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. A paper is usually located near the item where the bidders can write their names and the amount they are willing to buy the goods. Some silent auctions have one receptacle to hold the bids for all the goods on sale; others have individual container for each item. The choice however, is really up to the host.
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.
One similar auction website that runs on the same principle as silent auction is eBay where people can see the item and place a bid higher than the previous one made by others.
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.
However, it has drawbacks. 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. A paper is usually located near the item where the bidders can write their names and the amount they are willing to buy the goods. Some silent auctions have one receptacle to hold the bids for all the goods on sale; others have individual container for each item. The choice however, is really up to the host.
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.
One similar auction website that runs on the same principle as silent auction is eBay where people can see the item and place a bid higher than the previous one made by others.
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.
However, it has drawbacks. 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.
Types of Government Auctions
Do you know 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. Thus you can find anything and everything being sold here. Typically, the items here are second hand but they are, in most cases, top caliber and buyers can get them at excessively low prices. The government does not aim to make profit on such things; it only wants to get rid of them.
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. But as they say, to see is to believe. But there is no doubt that most of these things are authentic.
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. Thus you can find anything and everything being sold here. Typically, the items here are second hand but they are, in most cases, top caliber and buyers can get them at excessively low prices. The government does not aim to make profit on such things; it only wants to get rid of them.
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. But as they say, to see is to believe. But there is no doubt that most of these things are authentic.
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.
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.
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.
Tips on How to Bid Safely
Every movement on the bidding floor- even the slightest nod- could mean a bid to the auctioneer. Some people accidentally win items being auctioned because of some gestures that were natural for them, say waving at a friend during the auction. This could happen to anyone and it could happen to you.
Here are some bidding safety tips:
Eye Contact
You may be sitting far from the auctioneer but whenever you have the chance, catch his attention. Maintain eye contact afterwards. Keep your eye contact whenever possible, this will establish your identity to him. Thus, when it is time for you to bid on an item you intend to buy, you will have no problem in communicating this to the auctioneer.
Establishing Connection
Once you start bidding see to it that you don't lose the connection with the auctioneer. You could start by making a determined hand gesture or unabashed bidding using your card. From this point on, he will come back to you whenever your bid is upped. A simple nod or a slight gesture will tell him that you willing to raise the price a bit higher.
Dropping Out
Sometimes people feel pressured if the auctioneer keeps on coming back to them. If you want to quit from the bidding, a polite shaking of the head will signal the auctioneer that you are backing out.
Entering The Bid
You should always know when to enter the bidding. Some people come in too early, some are too late. Both positions have low chances of getting the item or property being auctioned at a price they want. If you want to set the price, try to enter midway into the bidding.
This way you are giving yourself a fair chance of getting out of the bid if you want to quit or pursue your bid if you are serious with the item. If you are doubtful on whether or not you should buy the item, never enter the bid when you feel that there are fewer people participating on it.
If, however, you intentionally entered the bidding game late, there is a chance that you could be overlooked by the auctioneer. If this happens, try to get his attention by politely saying a word to signal your interest.
Quick Decisions
Bidding often happen fast and sometimes it leaves you no room for analyzing whether you should place the next highest bid. In this case, try to think as fast as you can because the bidding will never stop for you.
Here are some bidding safety tips:
Eye Contact
You may be sitting far from the auctioneer but whenever you have the chance, catch his attention. Maintain eye contact afterwards. Keep your eye contact whenever possible, this will establish your identity to him. Thus, when it is time for you to bid on an item you intend to buy, you will have no problem in communicating this to the auctioneer.
Establishing Connection
Once you start bidding see to it that you don't lose the connection with the auctioneer. You could start by making a determined hand gesture or unabashed bidding using your card. From this point on, he will come back to you whenever your bid is upped. A simple nod or a slight gesture will tell him that you willing to raise the price a bit higher.
Dropping Out
Sometimes people feel pressured if the auctioneer keeps on coming back to them. If you want to quit from the bidding, a polite shaking of the head will signal the auctioneer that you are backing out.
Entering The Bid
You should always know when to enter the bidding. Some people come in too early, some are too late. Both positions have low chances of getting the item or property being auctioned at a price they want. If you want to set the price, try to enter midway into the bidding.
This way you are giving yourself a fair chance of getting out of the bid if you want to quit or pursue your bid if you are serious with the item. If you are doubtful on whether or not you should buy the item, never enter the bid when you feel that there are fewer people participating on it.
If, however, you intentionally entered the bidding game late, there is a chance that you could be overlooked by the auctioneer. If this happens, try to get his attention by politely saying a word to signal your interest.
Quick Decisions
Bidding often happen fast and sometimes it leaves you no room for analyzing whether you should place the next highest bid. In this case, try to think as fast as you can because the bidding will never stop for you.
Tips on Finding the Right Auction House
There are so many police auctions, government auctions, and privately hosted auctions happening across the country. And choosing one may be a bit confusing. Since the type of auction house will make the difference between getting the best deal and going home with nothing, finding the right one is as important as knowing how to bid correctly.
1. Know what you want.
Not all auction houses sell everything you need. Some only sell properties while others focus on certain items such as cars, antiques, artworks, memorabilia or jewelry. Police and government auctions sell various things including real estate properties, vehicles, boats, motorcycles, home furnishings, jewelry, and consumer electronics among others. When you know what you want to buy, you'll know where to go.
2. Do some research.
Finding a public auction is not rocket science. You don't need a degree to find one. Search online and "off-line". Different auction companies and auction houses have websites and newspaper ads where you can get information on when and where the next auction will be. Government and police agencies announce their auction schedules online and on their bulletin boards.
Auctions are also announced in local newspapers especially if the auctioneer is holding it nearby. Do not forget your yellow pages. Auction companies have listings in your dusty old phone book.
Get auction brochures. They contain listings of the items that are about to go on sale which will give you an initial idea on whether the items you are looking for will be sold at the auction or not. In addition, short descriptions are also included in the brochures so that potential buyers get important information on the auction goods.
3. Ask a friend.
Good things are not always a hard find. Sometimes, all you need to do is to ask your neighbor, your officemate or your relative if they know any auction houses.
4. Choose within your proximity.
The main reason why you are choosing auctions over other ways of purchasing goods is because you want to save money. So keep your expenses monitored. The amount to spend on the item is not limited to the final sale. It includes the cost of gasoline you spend on the commute, the food you spend for the day, and the time you waste to participate in the auction, not to mention the depreciation of your car on your way to the auction house and back. In order to keep your expenses low, choose an auction house nearest you.
1. Know what you want.
Not all auction houses sell everything you need. Some only sell properties while others focus on certain items such as cars, antiques, artworks, memorabilia or jewelry. Police and government auctions sell various things including real estate properties, vehicles, boats, motorcycles, home furnishings, jewelry, and consumer electronics among others. When you know what you want to buy, you'll know where to go.
2. Do some research.
Finding a public auction is not rocket science. You don't need a degree to find one. Search online and "off-line". Different auction companies and auction houses have websites and newspaper ads where you can get information on when and where the next auction will be. Government and police agencies announce their auction schedules online and on their bulletin boards.
Auctions are also announced in local newspapers especially if the auctioneer is holding it nearby. Do not forget your yellow pages. Auction companies have listings in your dusty old phone book.
Get auction brochures. They contain listings of the items that are about to go on sale which will give you an initial idea on whether the items you are looking for will be sold at the auction or not. In addition, short descriptions are also included in the brochures so that potential buyers get important information on the auction goods.
3. Ask a friend.
Good things are not always a hard find. Sometimes, all you need to do is to ask your neighbor, your officemate or your relative if they know any auction houses.
4. Choose within your proximity.
The main reason why you are choosing auctions over other ways of purchasing goods is because you want to save money. So keep your expenses monitored. The amount to spend on the item is not limited to the final sale. It includes the cost of gasoline you spend on the commute, the food you spend for the day, and the time you waste to participate in the auction, not to mention the depreciation of your car on your way to the auction house and back. In order to keep your expenses low, choose an auction house nearest you.
The Problem with Auctions (2)
Why do some bidders stick with their bids even if they are starting to go beyond the rationality of the sale? Why are there so many people who jump into the hype of auctions without really knowing why they do it? And why are there so many bidders who tend to get themselves caught in bidding wars while knowing that they will have to pay more than they can afford?
Bidding frenzy is a common problem in joining auctions which also makes some people reluctant in buying from such. Why is this happening and why are there some people who just can't stop even when the rationality of auctioning is crossed?
Here are three reasons behind this:
One, it may be due to the combination of arousal, excitement, competition, an overwhelming desire to win and extreme reluctance to back out.
Bidding frenzy is comparable with addiction to gambling in terms of the adrenaline rush and the continued excitement running in the psyche of the people involved. The more intense the bidding war becomes, the more interested the bidders become.
The rush of emotions can't be discounted when trying to understand why people participate in bidding wars. At this point, it really no longer matters whether logic is working or not, what is more important is that the person is satisfied emotionally. Also, people loose their best judgment when their minds are clouded with emotions.
Two, it may not be purely on winning the item but on testing the personal threshold of the bidder and the competitor.
People who aren't so interested in the item but get caught in the bidding war no longer feel the need to get the merchandise but the need to make the other person pay dearly when the ending price is several times over than the original price.
Three, it may be due to the lack of experience with auctions.
Bidding wars are more commonly observed among people who are just beginning and are not backed by sufficient information on how exactly they work. It must be noted that some bidding wars are intentionally encouraged by the auction organizers themselves. This is working on the principle that the more interest the public has on the merchandise, the higher the value it receives and the more interested buyers bid on it. This does not only increase the hype over the item but also adds to its market value.
Bidding frenzy is a common problem in joining auctions which also makes some people reluctant in buying from such. Why is this happening and why are there some people who just can't stop even when the rationality of auctioning is crossed?
Here are three reasons behind this:
One, it may be due to the combination of arousal, excitement, competition, an overwhelming desire to win and extreme reluctance to back out.
Bidding frenzy is comparable with addiction to gambling in terms of the adrenaline rush and the continued excitement running in the psyche of the people involved. The more intense the bidding war becomes, the more interested the bidders become.
The rush of emotions can't be discounted when trying to understand why people participate in bidding wars. At this point, it really no longer matters whether logic is working or not, what is more important is that the person is satisfied emotionally. Also, people loose their best judgment when their minds are clouded with emotions.
Two, it may not be purely on winning the item but on testing the personal threshold of the bidder and the competitor.
People who aren't so interested in the item but get caught in the bidding war no longer feel the need to get the merchandise but the need to make the other person pay dearly when the ending price is several times over than the original price.
Three, it may be due to the lack of experience with auctions.
Bidding wars are more commonly observed among people who are just beginning and are not backed by sufficient information on how exactly they work. It must be noted that some bidding wars are intentionally encouraged by the auction organizers themselves. This is working on the principle that the more interest the public has on the merchandise, the higher the value it receives and the more interested buyers bid on it. This does not only increase the hype over the item but also adds to its market value.
The Problem with Auctions
Why do some bidders stick with their bids even if they are starting to go beyond the rationality of the sale? Why are there so many people who jump into the hype of auctions without really knowing why they do it? And why are there so many bidders who tend to get themselves caught in bidding wars while knowing that they will have to pay more than they can afford?
Bidding frenzy is a common problem in joining auctions which also makes some people reluctant in buying from such. Why is this happening and why are there some people who just can't stop even when the rationality of auctioning is crossed?
Here are three reasons behind this:
One, it may be due to the combination of arousal, excitement, competition, an overwhelming desire to win and extreme reluctance to back out.
Bidding frenzy is comparable with addiction to gambling in terms of the adrenaline rush and the continued excitement running in the psyche of the people involved. The more intense the bidding war becomes, the more interested the bidders become.
The rush of emotions can't be discounted when trying to understand why people participate in bidding wars. At this point, it really no longer matters whether logic is working or not, what is more important is that the person is satisfied emotionally. Also, people loose their best judgment when their minds are clouded with emotions.
Two, it may not be purely on winning the item but on testing the personal threshold of the bidder and the competitor.
People who aren't so interested in the item but get caught in the bidding war no longer feel the need to get the merchandise but the need to make the other person pay dearly when the ending price is several times over than the original price.
Three, it may be due to the lack of experience with auctions.
Bidding wars are more commonly observed among people who are just beginning and are not backed by sufficient information on how exactly they work. It must be noted that some bidding wars are intentionally encouraged by the auction organizers themselves. This is working on the principle that the more interest the public has on the merchandise, the higher the value it receives and the more interested buyers bid on it. This does not only increase the hype over the item but also adds to its market value.
Bidding frenzy is a common problem in joining auctions which also makes some people reluctant in buying from such. Why is this happening and why are there some people who just can't stop even when the rationality of auctioning is crossed?
Here are three reasons behind this:
One, it may be due to the combination of arousal, excitement, competition, an overwhelming desire to win and extreme reluctance to back out.
Bidding frenzy is comparable with addiction to gambling in terms of the adrenaline rush and the continued excitement running in the psyche of the people involved. The more intense the bidding war becomes, the more interested the bidders become.
The rush of emotions can't be discounted when trying to understand why people participate in bidding wars. At this point, it really no longer matters whether logic is working or not, what is more important is that the person is satisfied emotionally. Also, people loose their best judgment when their minds are clouded with emotions.
Two, it may not be purely on winning the item but on testing the personal threshold of the bidder and the competitor.
People who aren't so interested in the item but get caught in the bidding war no longer feel the need to get the merchandise but the need to make the other person pay dearly when the ending price is several times over than the original price.
Three, it may be due to the lack of experience with auctions.
Bidding wars are more commonly observed among people who are just beginning and are not backed by sufficient information on how exactly they work. It must be noted that some bidding wars are intentionally encouraged by the auction organizers themselves. This is working on the principle that the more interest the public has on the merchandise, the higher the value it receives and the more interested buyers bid on it. This does not only increase the hype over the item but also adds to its market value.
The Advantages of Buying from an Auction
Public auctions have received positive responses among those who have visited them and won items. But why? Let us look at the advantages of going to and buying items from an auction.
The bidding process enables bidders to dictate the cost of the item they want to buy. While most items are often appraised to determine its minimum price or starting bid, the bidders are still the ones who will decide on the final price of the every item at the auction house.
Purchasing an item from an auction is often faster the than the conventional way of buying. Believe it or not, one item can be sold within 30 seconds at an auction. An auction is the simplest and fastest way to buy anything!
Generally, any item being sold at an auction is relatively cheaper compared to its actual market value. This does not mean though that you can steal a deal at a dirt cheap price all the time but auction items are usually sold 10% to 15% lower that their actual market value which is a pretty good deal if you want to save on cash.
The auction house or the auction companies allow you to inspect the items before the auction starts. This way, you can get up close and determine how much you are willing to pay for a particular item.
Items vary depending on what is available at the auction. From cars to boats to properties to office furniture to sports memorabilia to personal gadgets; the possibility of owning an item is endless. Some auction houses only focus on specific items such as cars or property. Still, inventory is very wide.
You can buy good quality items from an auction. This is contrary to the common notion that items that are sold there are used and poorly maintained. Designer clothes, jewelry, antiques, household goods and even cars, boats and motorcycles are well-kept before it is being sold at an auction. Or, in the case of seized properties, lots and houses that are being sold are not located in crime-ridden areas.
Finally, payment is even convenient. At the end of the auction, the item(s) you've won can be paid in cash, check or with a credit card. Partial or full payment is accepted to ensure that you get the item(s) you've won.
The bidding process enables bidders to dictate the cost of the item they want to buy. While most items are often appraised to determine its minimum price or starting bid, the bidders are still the ones who will decide on the final price of the every item at the auction house.
Purchasing an item from an auction is often faster the than the conventional way of buying. Believe it or not, one item can be sold within 30 seconds at an auction. An auction is the simplest and fastest way to buy anything!
Generally, any item being sold at an auction is relatively cheaper compared to its actual market value. This does not mean though that you can steal a deal at a dirt cheap price all the time but auction items are usually sold 10% to 15% lower that their actual market value which is a pretty good deal if you want to save on cash.
The auction house or the auction companies allow you to inspect the items before the auction starts. This way, you can get up close and determine how much you are willing to pay for a particular item.
Items vary depending on what is available at the auction. From cars to boats to properties to office furniture to sports memorabilia to personal gadgets; the possibility of owning an item is endless. Some auction houses only focus on specific items such as cars or property. Still, inventory is very wide.
You can buy good quality items from an auction. This is contrary to the common notion that items that are sold there are used and poorly maintained. Designer clothes, jewelry, antiques, household goods and even cars, boats and motorcycles are well-kept before it is being sold at an auction. Or, in the case of seized properties, lots and houses that are being sold are not located in crime-ridden areas.
Finally, payment is even convenient. At the end of the auction, the item(s) you've won can be paid in cash, check or with a credit card. Partial or full payment is accepted to ensure that you get the item(s) you've won.
Reasons Why You should Hire a Professional Charity Auctioneer
A major factor in the success of every charity auction comes from the auctioneer who can make the most undesirable auction good into something that's worth, not necessarily a fortune but a significant amount of money. While many talented volunteers can excite the audience, acquired skills of a professional charity auctioneer can make a big difference. Read on and you'll know why hiring a professional charity auctioneer is worth the investment.
A professional charity auctioneer does what he knows best: he connects with the audience, raises the money and sells items as high as possible for your cause. While in the real sense, the bidders have all the control over the final price of each auction goods on sale, a good auctioneer can stimulate the crowd to bring up the cost of the goods by bidding higher. Other volunteers and celebrities can raise the bidders to their feet but it takes more than applause, smiles, and laughs to raise a good amount of money; a task that only he can do.
It does not end here. Not because you see him only as the person who stands on the stage and calls in the bids means that his task is limited to his podium. A professional charity auctioneer can give you useful insights and help you plan better the event that very few members of your team can match. He is not the planner though, but his experience in hosting the event will ensure that it will go smoothly as possible.
Since the auctioneer participates all throughout the planning, he becomes part of the team. This is important since no charity auction will succeed without a good plan and organization. And no charity auction will do exceptionally well without someone who really knows the correct approach on every aspect of what he is doing.
A professional charity auctioneer may cost you some amount but the service he provides is worth more than he charges. Besides, there are auctioneers who will willingly give their service to charity auctions free of charge or for a very small amount.
Take note: a traditional auctioneer has high skills in his on rights but there is a special level of skill required when calling bids for a non-profit auction. The expertise combined with the passion and understanding to the mission and objectives of the clients are something you can only expect from a charity auctioneer.
A professional charity auctioneer does what he knows best: he connects with the audience, raises the money and sells items as high as possible for your cause. While in the real sense, the bidders have all the control over the final price of each auction goods on sale, a good auctioneer can stimulate the crowd to bring up the cost of the goods by bidding higher. Other volunteers and celebrities can raise the bidders to their feet but it takes more than applause, smiles, and laughs to raise a good amount of money; a task that only he can do.
It does not end here. Not because you see him only as the person who stands on the stage and calls in the bids means that his task is limited to his podium. A professional charity auctioneer can give you useful insights and help you plan better the event that very few members of your team can match. He is not the planner though, but his experience in hosting the event will ensure that it will go smoothly as possible.
Since the auctioneer participates all throughout the planning, he becomes part of the team. This is important since no charity auction will succeed without a good plan and organization. And no charity auction will do exceptionally well without someone who really knows the correct approach on every aspect of what he is doing.
A professional charity auctioneer may cost you some amount but the service he provides is worth more than he charges. Besides, there are auctioneers who will willingly give their service to charity auctions free of charge or for a very small amount.
Take note: a traditional auctioneer has high skills in his on rights but there is a special level of skill required when calling bids for a non-profit auction. The expertise combined with the passion and understanding to the mission and objectives of the clients are something you can only expect from a charity auctioneer.
Must-Know Things about Car Auctions
Investment wise, buying a car at an auction is a smart move. But this should be done with extreme care because public car auctions have inherent risks and benefits. So before you jump in with your bid it is best that you are equipped with necessary knowledge about auctions. It is not all about finding great deals, it is also about dodging the possibilities of getting not-so-good ones.
First with the cars. Cars at auction are generally cheap. However, the mechanical condition of the cars suffers. You won't know whether the car has mechanical defects or whether the paint is original or not until the buyer tests it. The problem with car auctions is that not all auctions have a viewing time.
Meaning some auctions will not allow the potential buyers to inspect the cars they are eyeing. Also, many organizers do not allow test-drives. Thus, any potential buyers are not certain whether the deal they are getting is good or bad.
Also, the cars are auctioned as-is. If the car has a dent then you'll be buying that dent along with the car. Nearly all auction organizers do not bother on fixing the car before they bring it to the auction site.
Second, the extra charges. These may be small and can be easily dealt with however, for many buyers paying extra cash for some fees that they were not prepared for could spoil the deal. Paying the buyer's premium, a fee charged to the person with the highest bid, could sometimes cost a couple of hundred dollars.
Third, the type of car auctions. There are several types of car auctions and these provide features that may not be had from other types. For example, there are auctions specializing only on second-hand cars, there are those that sell vintage cars and there are others that attract people wanting to buy salvaged cars. The buyer will then have to decide the options that suit him best which will let him get the best deal.
Fourth, knowing where to look for auctions. Different auction houses have different mediums for relaying their activities to the public. In short, there are many places to look for when wanting to find auctions. Advertisements are commonly found in radio announcements, local TV networks and car sale magazines.
Lastly, the car auctioneers. A lot of car auctioneers are reliable and reputed for their good services but some of them are not. So ensure to it that you go to auctioneers that operate on regular basis but sometimes, even that is not an assurance that you are getting the best deals.
First with the cars. Cars at auction are generally cheap. However, the mechanical condition of the cars suffers. You won't know whether the car has mechanical defects or whether the paint is original or not until the buyer tests it. The problem with car auctions is that not all auctions have a viewing time.
Meaning some auctions will not allow the potential buyers to inspect the cars they are eyeing. Also, many organizers do not allow test-drives. Thus, any potential buyers are not certain whether the deal they are getting is good or bad.
Also, the cars are auctioned as-is. If the car has a dent then you'll be buying that dent along with the car. Nearly all auction organizers do not bother on fixing the car before they bring it to the auction site.
Second, the extra charges. These may be small and can be easily dealt with however, for many buyers paying extra cash for some fees that they were not prepared for could spoil the deal. Paying the buyer's premium, a fee charged to the person with the highest bid, could sometimes cost a couple of hundred dollars.
Third, the type of car auctions. There are several types of car auctions and these provide features that may not be had from other types. For example, there are auctions specializing only on second-hand cars, there are those that sell vintage cars and there are others that attract people wanting to buy salvaged cars. The buyer will then have to decide the options that suit him best which will let him get the best deal.
Fourth, knowing where to look for auctions. Different auction houses have different mediums for relaying their activities to the public. In short, there are many places to look for when wanting to find auctions. Advertisements are commonly found in radio announcements, local TV networks and car sale magazines.
Lastly, the car auctioneers. A lot of car auctioneers are reliable and reputed for their good services but some of them are not. So ensure to it that you go to auctioneers that operate on regular basis but sometimes, even that is not an assurance that you are getting the best deals.
Learn to Do Well at the Auction
An auction can be a great place for bargains and a venue where you can get items you are looking for. That is, if you know how to bid right. Here are some pointers you can apply when you are going to an auction.
Inspect the items personally. Deciding whether to bid for an item or not should not be done while looking at the auction brochure. Because no matter how glossy and attractive the pictures are, there is no other way to get the full details on the things or property you want to buy than looking at it in person.
So, before you even think about buying an item at an auction, make sure that you have done a physical inspection. Come to the auction site before the bidding starts. This will give you enough time to decide if the picture you see is really something worth buying.
Bring a friend. Auctions can stir a lot of emotions you don't need. Bringing someone who remains neutral can give you a tap if you are going out of line.
Set a budget and bring enough cash. Giving yourself a limit on how much you are willing to spend for a particular item should be one of your top priorities. When doing this, consider the total cost including other fees such as repairs, solicitor's fee, taxes, redecorating or renovation, and mortgage.
Don't panic. The auction process happens really fast. In a matter of seconds, an item can be sold and in a matter of minutes, the auction is over and you are on your way home. But this doesn't mean that you go all out and bid on whatever item that is presented in front of you. Stay calm. If you don't get the item you are after, do not get disappointed. It is better to go back another day and try your luck than to go home feeling sorry about yourself because you have won an item you don't really need.
Be aware of the auction lingo. The sale is about to close if you here something like, "going once, going twice" And when you hear the hammer raps, the item is sold. Do not wait for this moment before you decide that you want to bid more for the item.
Inspect the items personally. Deciding whether to bid for an item or not should not be done while looking at the auction brochure. Because no matter how glossy and attractive the pictures are, there is no other way to get the full details on the things or property you want to buy than looking at it in person.
So, before you even think about buying an item at an auction, make sure that you have done a physical inspection. Come to the auction site before the bidding starts. This will give you enough time to decide if the picture you see is really something worth buying.
Bring a friend. Auctions can stir a lot of emotions you don't need. Bringing someone who remains neutral can give you a tap if you are going out of line.
Set a budget and bring enough cash. Giving yourself a limit on how much you are willing to spend for a particular item should be one of your top priorities. When doing this, consider the total cost including other fees such as repairs, solicitor's fee, taxes, redecorating or renovation, and mortgage.
Don't panic. The auction process happens really fast. In a matter of seconds, an item can be sold and in a matter of minutes, the auction is over and you are on your way home. But this doesn't mean that you go all out and bid on whatever item that is presented in front of you. Stay calm. If you don't get the item you are after, do not get disappointed. It is better to go back another day and try your luck than to go home feeling sorry about yourself because you have won an item you don't really need.
Be aware of the auction lingo. The sale is about to close if you here something like, "going once, going twice" And when you hear the hammer raps, the item is sold. Do not wait for this moment before you decide that you want to bid more for the item.
How to Sell Your House at an Auction
An auction is a popular selling method for houses, especially for the owners of foreclosed homes, due to its many benefits. It is the quickest way with the highest guarantee of sale. Here are some guidelines that will help you determine whether you should auction your house or not.
Which Properties to Sell
There are several types of properties that are best sold at auctions rather than under normal circumstances. They include:
Houses that are hard to sell through conventional means: There are certain types of houses that simply can't be sold through the open market fast. These include those that are in really bad shape and have received no repairs over the years, properties that have very unorthodox designs and those that don't receive good advertisement. All of these types could have a fair chance of getting sold through an auction.
Houses that have no definite value: These are houses that are marked for their distinctiveness but are rather hard to sell on the open market.
Foreclosed houses: Owners of foreclosed homes usually resort to auctioning their houses for faster sale to compensate the expenses, the unpaid bills and sometimes even to save the house itself from being foreclosed.
Highly-demanded properties: Popular houses get exceedingly higher selling prices when auctioned.
Evaluation Period
This entails the process of assessing your property and the potential auctioneer/s. Before you decide to sell it at auction, it is best to shop around for auction houses that fit your requirements. Have your property evaluated first so you'll know what is the reserve price of your house and the total value you should get after the auction. Then, check the price range of the properties that the auctioneer offers. This way, you'll be able to increase the possibility of getting a satisfactory deal for your property.
Properties at auctions are sold as-is but the owner has the option to increase its value first. For example, repairs, doing a bit of cleaning and restoring the property will actually increase its selling price.
Knowing the Cost
Auctioneers don't come free. They charge their clients for the brochures, advertisements and the general services they provide whether the house is sold or not. Also, you might pay a minimum commission of 2.5% from the sale of the house. To get around the unsolicited expenses and the payments that you may not expect before and after the auction, negotiate well with the auctioneer and read everything before signing anything.
Selling Proper
Before offering the house for auction, set the reserve price first - this is the starting bid for the property. Consult with your auctioneer before setting the reserve price. Second, arrange the contract. Finally, prepare the property for viewing by willing bidders.
Selling itself will occur during the auction. Potential buyers will bid on it. The one with the highest bid wins and the sale is official and legally binding
Which Properties to Sell
There are several types of properties that are best sold at auctions rather than under normal circumstances. They include:
Houses that are hard to sell through conventional means: There are certain types of houses that simply can't be sold through the open market fast. These include those that are in really bad shape and have received no repairs over the years, properties that have very unorthodox designs and those that don't receive good advertisement. All of these types could have a fair chance of getting sold through an auction.
Houses that have no definite value: These are houses that are marked for their distinctiveness but are rather hard to sell on the open market.
Foreclosed houses: Owners of foreclosed homes usually resort to auctioning their houses for faster sale to compensate the expenses, the unpaid bills and sometimes even to save the house itself from being foreclosed.
Highly-demanded properties: Popular houses get exceedingly higher selling prices when auctioned.
Evaluation Period
This entails the process of assessing your property and the potential auctioneer/s. Before you decide to sell it at auction, it is best to shop around for auction houses that fit your requirements. Have your property evaluated first so you'll know what is the reserve price of your house and the total value you should get after the auction. Then, check the price range of the properties that the auctioneer offers. This way, you'll be able to increase the possibility of getting a satisfactory deal for your property.
Properties at auctions are sold as-is but the owner has the option to increase its value first. For example, repairs, doing a bit of cleaning and restoring the property will actually increase its selling price.
Knowing the Cost
Auctioneers don't come free. They charge their clients for the brochures, advertisements and the general services they provide whether the house is sold or not. Also, you might pay a minimum commission of 2.5% from the sale of the house. To get around the unsolicited expenses and the payments that you may not expect before and after the auction, negotiate well with the auctioneer and read everything before signing anything.
Selling Proper
Before offering the house for auction, set the reserve price first - this is the starting bid for the property. Consult with your auctioneer before setting the reserve price. Second, arrange the contract. Finally, prepare the property for viewing by willing bidders.
Selling itself will occur during the auction. Potential buyers will bid on it. The one with the highest bid wins and the sale is official and legally binding
How to Profit on Selling Real Estate at Auctions
Auctions of real estate are not only done by people who are distressed about their mortgage fees but also by people who want to make a profit on their own properties. And what is the best way to do it? Real estate auctions.
Real estate auctions create the buzz and interest that may not be had through conventional selling on the open market. Sometimes, this type of merchandising your property may even increase its actual value due to bidding wars that often happen during auctions and by the attention the auction gets. Furthermore, bidding occurs only in a day so any willing buyers will have to compete with other more willing buyers to get the property they want.
Here's how you can profit from selling your real estate:
PREPARATION
To maximize profit, prepare your house for selling. Spruce up the property and make it look good to willing buyers. Paint the exterior and interior, landscape the garden, clean up and put away things that do not look good around your house. These little investments will go a long way in increasing your home's value.
EVALUATION
Have your house evaluated by a realtor or real estate agent. If you do not want to throw in some cash, try to research on the general value of the properties in your neighborhood. Compare it against houses with similar amenities. This will give you a rough estimate of how much your house is worth.
AUCTIONEER
Prepare a meeting with professional auctioneer who offers similar properties like yours. This way you'll get the best value and maximized exposure. Ask for several references. Also, try to attend some of his auctions so you'll know the potential buying capacity of his regular bidders, his performance and his capacity to sell your house.
Then hire the best auctioneer that you can afford. Your best choice may require you to pay a lot more than hiring regular auctioneers. However the best people in this business have the best capacity to attract more interested people in buying your property.
Before signing any contract or agreement be sure to read the fine print. You never know what you will run in to. Also, be sure to note how much commission you will give him and other expenses that you may have to pay during the entire process.
Lastly, with the help of the auctioneer set a reserve price for your house. This is the least amount of money that you will get from auctioning your house.
Real estate auctions create the buzz and interest that may not be had through conventional selling on the open market. Sometimes, this type of merchandising your property may even increase its actual value due to bidding wars that often happen during auctions and by the attention the auction gets. Furthermore, bidding occurs only in a day so any willing buyers will have to compete with other more willing buyers to get the property they want.
Here's how you can profit from selling your real estate:
PREPARATION
To maximize profit, prepare your house for selling. Spruce up the property and make it look good to willing buyers. Paint the exterior and interior, landscape the garden, clean up and put away things that do not look good around your house. These little investments will go a long way in increasing your home's value.
EVALUATION
Have your house evaluated by a realtor or real estate agent. If you do not want to throw in some cash, try to research on the general value of the properties in your neighborhood. Compare it against houses with similar amenities. This will give you a rough estimate of how much your house is worth.
AUCTIONEER
Prepare a meeting with professional auctioneer who offers similar properties like yours. This way you'll get the best value and maximized exposure. Ask for several references. Also, try to attend some of his auctions so you'll know the potential buying capacity of his regular bidders, his performance and his capacity to sell your house.
Then hire the best auctioneer that you can afford. Your best choice may require you to pay a lot more than hiring regular auctioneers. However the best people in this business have the best capacity to attract more interested people in buying your property.
Before signing any contract or agreement be sure to read the fine print. You never know what you will run in to. Also, be sure to note how much commission you will give him and other expenses that you may have to pay during the entire process.
Lastly, with the help of the auctioneer set a reserve price for your house. This is the least amount of money that you will get from auctioning your house.
How to Decide How much to Bid
Buying at an auction is often a much faster and easier way to own a property. However, as fast and as easy things may appear, there are jobs that need to be done; including setting the highest amount you are willing to pay for the property.
Here's how to decide how much to bid...
First, once you see the property you are interested in, call the auction house and arrange the viewing. This way, you will be able to decide according to the present condition of the property. Initial impression will give you a good idea (a personal estimate), how much you are willing to pay for the property.
Then, consult your mortgage lender and tell them about the property. They will not lend you money unless a survey or an appraisal is conducted. Know how much you can afford to borrow from your lender
Third, know its market value through an appraisal. This may not give you the exact amount you are looking for but property valuation will give you an idea on how much you should really pay for the property.
Also factor in the deposit you can afford. Usually, the least amount that the auction house accepts as down payment for the property is 10% of the final sale.
Compute the possible repair cost. Properties that are sold at auctions often come from repossession, foreclosure and bankruptcy. So it is likely that they may not be very well-maintained. And to make it livable, you need to do some repairs or renovation. Hire a professional do an estimate on the cost of the repairs. Include the cost of repairs on the highest amount of your bid.
Take into consideration several fees including survey fee, valuation fees, mortgage indemnity guarantees, arrangement fees, solicitor's fees, mortgage broker fees, lender fees, stamp duties, moving cost, auction registration fees, insurance, auction house commissions, and the cost of selling your previous home.
Once you have the figures from every detail you need including the price of the property, the cost of repair, and the extra expenses necessary to by the house, you should be able to identify the highest amount you should pay for the property.
Basically, determining how much you should pay for a property at an auction is similar to setting your budget when you buy property from an agent. The difference is, the price is not definite and will depend on other participants at the auction.
Here's how to decide how much to bid...
First, once you see the property you are interested in, call the auction house and arrange the viewing. This way, you will be able to decide according to the present condition of the property. Initial impression will give you a good idea (a personal estimate), how much you are willing to pay for the property.
Then, consult your mortgage lender and tell them about the property. They will not lend you money unless a survey or an appraisal is conducted. Know how much you can afford to borrow from your lender
Third, know its market value through an appraisal. This may not give you the exact amount you are looking for but property valuation will give you an idea on how much you should really pay for the property.
Also factor in the deposit you can afford. Usually, the least amount that the auction house accepts as down payment for the property is 10% of the final sale.
Compute the possible repair cost. Properties that are sold at auctions often come from repossession, foreclosure and bankruptcy. So it is likely that they may not be very well-maintained. And to make it livable, you need to do some repairs or renovation. Hire a professional do an estimate on the cost of the repairs. Include the cost of repairs on the highest amount of your bid.
Take into consideration several fees including survey fee, valuation fees, mortgage indemnity guarantees, arrangement fees, solicitor's fees, mortgage broker fees, lender fees, stamp duties, moving cost, auction registration fees, insurance, auction house commissions, and the cost of selling your previous home.
Once you have the figures from every detail you need including the price of the property, the cost of repair, and the extra expenses necessary to by the house, you should be able to identify the highest amount you should pay for the property.
Basically, determining how much you should pay for a property at an auction is similar to setting your budget when you buy property from an agent. The difference is, the price is not definite and will depend on other participants at the auction.
How to Avert Auction Mistakes
Bidding at an auction can be an enjoyable experience but if you focus solely on fun and let loose of your limitations, you may be on your way to auction pitfalls. Here are the things you need to remember to avert auction mistakes.
Inspect the items you are interested in.
While auction brochures can supply you with important information about the auction goods you want to buy, there is no better way to know the condition of the items than to inspect them in person. Remember, bidding at an auction is a form of buying goods. So no matter how inexpensive the item you have won, you still have to pull money out from your pocket.
Know what you need and not what you want.
There are several good items that can be put into a single auction; however, this should not be a reason for you to throw away your money and bid on everything. Set your priorities straight. You are going to an auction to get something you need and not just for the heck of bringing home just anything.
Set a budget.
The bidding process happens very quickly and if you are not attentive, the item you have planned to bid on will be taken by others. But this is not an excuse to engage into a bidding war against other bidders. Set the highest amount of cash you are willing to pay for each item you have chosen. Keep your budget in mind when bidding.
If you are bidding on memorabilia, antiques, artwork, or vintage items which value may appreciate in the future, set your budget so it is worth the investment.
Any items you have won during the auction must be paid for that day. Often, credit cards are accepted as a form of payment but most auction companies require cash.
Do not forget to register.
Before you can participate at an auction, you need to register. You may be asked to give your name, address, phone number, and may be required to give a deposit. You will be then given a number you will use during the auction.
Do not get carried away
Emotions can run high during the bidding process. Stay focused! If the price of a particular item goes over your budget, let it go. Do not get frustrated and bid on other items you don't really want just to comfort yourself or just to have something to bring home. Again, you are putting money on the line so spend wisely.
Inspect the items you are interested in.
While auction brochures can supply you with important information about the auction goods you want to buy, there is no better way to know the condition of the items than to inspect them in person. Remember, bidding at an auction is a form of buying goods. So no matter how inexpensive the item you have won, you still have to pull money out from your pocket.
Know what you need and not what you want.
There are several good items that can be put into a single auction; however, this should not be a reason for you to throw away your money and bid on everything. Set your priorities straight. You are going to an auction to get something you need and not just for the heck of bringing home just anything.
Set a budget.
The bidding process happens very quickly and if you are not attentive, the item you have planned to bid on will be taken by others. But this is not an excuse to engage into a bidding war against other bidders. Set the highest amount of cash you are willing to pay for each item you have chosen. Keep your budget in mind when bidding.
If you are bidding on memorabilia, antiques, artwork, or vintage items which value may appreciate in the future, set your budget so it is worth the investment.
Any items you have won during the auction must be paid for that day. Often, credit cards are accepted as a form of payment but most auction companies require cash.
Do not forget to register.
Before you can participate at an auction, you need to register. You may be asked to give your name, address, phone number, and may be required to give a deposit. You will be then given a number you will use during the auction.
Do not get carried away
Emotions can run high during the bidding process. Stay focused! If the price of a particular item goes over your budget, let it go. Do not get frustrated and bid on other items you don't really want just to comfort yourself or just to have something to bring home. Again, you are putting money on the line so spend wisely.
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. There are only few items being auctioned which means that only a few people can win the bid so in most cases, even if the bidder comes well-prepared for the battle, he could still get out of the auction site with nothing in hand.
So how does auction work?
Registration
It is a must for auctioneers to have their potential bidders register before they participate in the bidding. The bidder has to give the correct information as this may be use as reference for future transactions. Typical information required are personal information such as name, address and bidding history if applicable.
Also during registration, the participant will be asked to pay a returnable deposit. 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. (NOTE: Under normal circumstances, viewing time is allowed which could last anywhere from a few hours to several days. 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. But clear gestures can also be used.
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. The bidder has to give the correct information as this may be use as reference for future transactions. Typical information required are personal information such as name, address and bidding history if applicable.
Also during registration, the participant will be asked to pay a returnable deposit. 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. (NOTE: Under normal circumstances, viewing time is allowed which could last anywhere from a few hours to several days. 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. But clear gestures can also be used.
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.
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. The easiest way to counter this is to do your research.
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. Knowing something about the item could help you decide on how much you should be willing to bid on it. 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. This also gives you the advantage of getting a comfortable seat.
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. There is so much going on, the hype, the excitement and the wars that normally happen. All these could give you reliable information once you decide to participate yourself. Initially, you should not place any bid- no matter how small the amount. Your intention is to get the feel of the auction process, nothing else.
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. The easiest way to counter this is to do your research.
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. Knowing something about the item could help you decide on how much you should be willing to bid on it. 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. This also gives you the advantage of getting a comfortable seat.
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. There is so much going on, the hype, the excitement and the wars that normally happen. All these could give you reliable information once you decide to participate yourself. Initially, you should not place any bid- no matter how small the amount. Your intention is to get the feel of the auction process, nothing else.
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.
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. There is an added danger to this- there are cars labeled as second-hand but are not at all second hand, some of them could be third hand or more.
A lot of cars at auction are not in mint condition, many of them even have mechanical flaws. Such flaws may not be apparent during the auction due to refurbishments, repaints and fixes that were made on the car to make the item look their best. These flaws will start appearing once the buyer uses the car.
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. Thus the buyer has to rely on his best judgment backed by a considerable amount of research and use of gut feelings.
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. There is an added danger to this- there are cars labeled as second-hand but are not at all second hand, some of them could be third hand or more.
A lot of cars at auction are not in mint condition, many of them even have mechanical flaws. Such flaws may not be apparent during the auction due to refurbishments, repaints and fixes that were made on the car to make the item look their best. These flaws will start appearing once the buyer uses the car.
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. Thus the buyer has to rely on his best judgment backed by a considerable amount of research and use of gut feelings.
Going to an Auction in 5 Easy Steps
The process of buying at an auction can be confusing to first timers. If you get started on the wrong foot, the whole experience can be discouraging. So in order to make sure that you do it correctly on your first try, here are the steps you should follow
1. Go to an auction preview
If you want to increase your chances of success, this is the most important step you should focus on. Auction previews are an opportunity to know the different auction goods on sale and the only time to inspect personally the items you are interested in bidding on. Turn it on, plug it in, try it out and examine all the features of the item when possible.
Auction previews are held days before the actual auction day. It is your chance to take notes, bring a camera, and screen the items through your personal quality check list. At the day of the auction, go through the items one last time and inspect that they are still in the same condition.
2. Do your Research
Once you have seen the items on sale, go home and do your research. Go online and check the market value of the items. Consider the repair costs if necessary.
3. Set your budget
Once you have done your research on the items you are interested in bidding on, determine the highest amount you are willing to pay for each item. Take note, knowing the amount of your highest bid should be based on the current market value of each item, the possible repair costs, and the additional charges the auction company will impose on the sale.
4. Prepare Your money
Winning at an auction is legally binding so you cannot simply pull yourself out after you win an item. Prepare your money that you have set to cover your bids and the extra fee.
5. Bid
When the auction opens and the auctioneer calls for the bids be ready. A second of hesitation may cost you to lose the item you are eyeing. Stay within your set budget. The auction process is fast-paced; things can get ugly, and emotions can run high. Do not let your emotions rule your decision-making. Bidding on impulse may win you an item but make sure that it won't overrule the budget you have set and the research you have done.
1. Go to an auction preview
If you want to increase your chances of success, this is the most important step you should focus on. Auction previews are an opportunity to know the different auction goods on sale and the only time to inspect personally the items you are interested in bidding on. Turn it on, plug it in, try it out and examine all the features of the item when possible.
Auction previews are held days before the actual auction day. It is your chance to take notes, bring a camera, and screen the items through your personal quality check list. At the day of the auction, go through the items one last time and inspect that they are still in the same condition.
2. Do your Research
Once you have seen the items on sale, go home and do your research. Go online and check the market value of the items. Consider the repair costs if necessary.
3. Set your budget
Once you have done your research on the items you are interested in bidding on, determine the highest amount you are willing to pay for each item. Take note, knowing the amount of your highest bid should be based on the current market value of each item, the possible repair costs, and the additional charges the auction company will impose on the sale.
4. Prepare Your money
Winning at an auction is legally binding so you cannot simply pull yourself out after you win an item. Prepare your money that you have set to cover your bids and the extra fee.
5. Bid
When the auction opens and the auctioneer calls for the bids be ready. A second of hesitation may cost you to lose the item you are eyeing. Stay within your set budget. The auction process is fast-paced; things can get ugly, and emotions can run high. Do not let your emotions rule your decision-making. Bidding on impulse may win you an item but make sure that it won't overrule the budget you have set and the research you have done.
Fundraising Auction Do's and Don'ts
Organizing a fundraising auction is a big task, nonetheless it is possible. But before start, take these do's and don'ts as your guide to a better and more successful auction.
Do's
Do the planning carefully. Set your goal. Gather your team. Draw your plan. Delegate tasks. Prepare everything you need. Execute perfectly.
Get a corporate sponsor. Not only will it reduce your expenses, getting a corporate sponsor will also help you attract more people through corporate contacts or employees. Companies are less likely to refuse since it gives them exposure for a small amount. The thing is: You need them and they need you. Everyone benefits.
Define what auction you will use. You have 3 choices. You can use a regular auction, silent auction, or both. Each has its own pros and cons. It is up to you to decide what approach to take to make the most out of these types of auctions.
Do hire a professional charity auctioneer. Take note: "professional charity auctioneer". Regular auctioneers have a great skill of their own but a charity auctioneer knows how to execute a non-profit event very well.
Integrate the auction into a charity event. Often, a fundraising activity including charity auction is combined with an event. This helps draw invites and keep the guests entertained.
Don'ts
Don't set limitations on the type of auction goods to sell. If you want to gather enough funds for a cause, be ready to sell everything.
Don't assume that your guests know what to do. Not everyone has been to an auction or experienced bidding for an item at an auction. So keep each of your guests informed as to what they should expect during the actual event. Doing this allows you to connect with them personally. In return, your guests are well-informed on the cause of the event which can yield to better bidding results.
Don't spend too much on preparation. This is a fundraising event and your goal is to raise money. The last thing you want is to host an event that requires big money. Keep your budget to the minimum. Any amount you save is added to the money you earn.
Do's
Do the planning carefully. Set your goal. Gather your team. Draw your plan. Delegate tasks. Prepare everything you need. Execute perfectly.
Get a corporate sponsor. Not only will it reduce your expenses, getting a corporate sponsor will also help you attract more people through corporate contacts or employees. Companies are less likely to refuse since it gives them exposure for a small amount. The thing is: You need them and they need you. Everyone benefits.
Define what auction you will use. You have 3 choices. You can use a regular auction, silent auction, or both. Each has its own pros and cons. It is up to you to decide what approach to take to make the most out of these types of auctions.
Do hire a professional charity auctioneer. Take note: "professional charity auctioneer". Regular auctioneers have a great skill of their own but a charity auctioneer knows how to execute a non-profit event very well.
Integrate the auction into a charity event. Often, a fundraising activity including charity auction is combined with an event. This helps draw invites and keep the guests entertained.
Don'ts
Don't set limitations on the type of auction goods to sell. If you want to gather enough funds for a cause, be ready to sell everything.
Don't assume that your guests know what to do. Not everyone has been to an auction or experienced bidding for an item at an auction. So keep each of your guests informed as to what they should expect during the actual event. Doing this allows you to connect with them personally. In return, your guests are well-informed on the cause of the event which can yield to better bidding results.
Don't spend too much on preparation. This is a fundraising event and your goal is to raise money. The last thing you want is to host an event that requires big money. Keep your budget to the minimum. Any amount you save is added to the money you earn.
Better to 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.
In the end, there will only be you and that bidder (and probably someone else) who'll be left bidding on an item. If this is the case, you can try to outbid him as much as you want but once the price crosses over the actual value of the item, pull the stops and let that person win it. 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.
In the end, there will only be you and that bidder (and probably someone else) who'll be left bidding on an item. If this is the case, you can try to outbid him as much as you want but once the price crosses over the actual value of the item, pull the stops and let that person win it. An item is only as good as its original value.
Boost Your Sales and Make Money at Auctions
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.
1. 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.
2. 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.
3. 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.
4. 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.
1. 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.
2. 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.
3. 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.
4. 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.
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.
An Effective Fundraising Tool
Charity auction are widely used as a tool to effectively raise funds for a cause. A charity auction works the same as other types of auctions. The main difference is that this auction is a non-profit event and the proceeds of all the items that are sold goes to a common cause.
There are two types of auctions used on a fundraising event: Silent auction and regular auction.
Silent auctions are conducted by setting up a table or a display where all the auction goods will be shown for people to bid on. A minimum bid may or may not be set. A piece of paper is located near the items where participants can write the amount of their bid together with their name. At the end of the auction, the bid is calculated and the person who casts the highest bid wins the item. This is often a better choice for fundraising organizers as it does not detract people from the entertainment.
Bids can be kept privately throughout the auction or can be displayed through a bidding sheet. In a 'private silent auction', all the previous bids are not revealed in public. The good thing about 'private silent auction' is that, it keeps the bidders clueless on other bids. In theory, if a person does not know how much the bids of others are, the tendency is to give the highest amount he or she is willing spend on a particular item. And since it is for a cause, money will definitely come easy.
On a 'displayed-bid silent auction' a sheet of paper reveals all the previous bids made by other people. This allows bidders to watch a particular item or items they like and place higher bids, to write down the amount higher than the previous bid, or to write down the highest bid before the auction closes. This method is currently being used by almost all internet auction sites including eBay.
A regular auction on the other hand requires an auctioneer who will call the price from people who raise their hands or numbers to bid. A regular auction takes advantage of impulse buying as bidders only have a few seconds to outbid each other. If the auctioneer is good and the competition is present, items can be sold higher that their original value.
When executed properly, both silent auction and regular auction effectively yield a good result.
There are two types of auctions used on a fundraising event: Silent auction and regular auction.
Silent auctions are conducted by setting up a table or a display where all the auction goods will be shown for people to bid on. A minimum bid may or may not be set. A piece of paper is located near the items where participants can write the amount of their bid together with their name. At the end of the auction, the bid is calculated and the person who casts the highest bid wins the item. This is often a better choice for fundraising organizers as it does not detract people from the entertainment.
Bids can be kept privately throughout the auction or can be displayed through a bidding sheet. In a 'private silent auction', all the previous bids are not revealed in public. The good thing about 'private silent auction' is that, it keeps the bidders clueless on other bids. In theory, if a person does not know how much the bids of others are, the tendency is to give the highest amount he or she is willing spend on a particular item. And since it is for a cause, money will definitely come easy.
On a 'displayed-bid silent auction' a sheet of paper reveals all the previous bids made by other people. This allows bidders to watch a particular item or items they like and place higher bids, to write down the amount higher than the previous bid, or to write down the highest bid before the auction closes. This method is currently being used by almost all internet auction sites including eBay.
A regular auction on the other hand requires an auctioneer who will call the price from people who raise their hands or numbers to bid. A regular auction takes advantage of impulse buying as bidders only have a few seconds to outbid each other. If the auctioneer is good and the competition is present, items can be sold higher that their original value.
When executed properly, both silent auction and regular auction effectively yield a good result.
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 whether the seller agrees to the price or not.
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 whether the seller agrees to the price or not.
Thursday, January 1, 2009
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. Nonetheless, as long as you have a good venue and people ready to shed some money for a good cause, you'll be fine.
Let it be Known
Have the invitation set. 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. He or she may not be a professional or a fast talker; a good auctioneer has to be someone who can stand on the podium and get the crowd going. 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. Nonetheless, as long as you have a good venue and people ready to shed some money for a good cause, you'll be fine.
Let it be Known
Have the invitation set. 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. He or she may not be a professional or a fast talker; a good auctioneer has to be someone who can stand on the podium and get the crowd going. 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.
5 Reasons Folks Fail at Auctions
Winning something at an auction is not just about toppling all your opponents and emerging as the highest bidder. It's also about bidding wisely and making the most out of every cent you pay. Sadly, not all bidders make correct decisions and fail miserably due to their own negligence. The reasons? Read on :
1. Bidding without planning. Participants without a plan on what to do and how to do things right will likely fail at any auction they go to. The auction process is a bit tricky and confusing so come prepared. Identify the auction goods you want to buy by looking at auction brochures provided before the auction date. Do some research on the items you are interested in. Know their current market value and set your budget. Not only will it set your priorities straight, it also gives you better chances of bringing home the items you really need.
2. Buying an item blindfolded. Not literally, of course. The point is, when you are trying to buy at an auction make sure that you have carefully inspected the particular item you are interested in. Doing this will ensure that you know what you are up to and what to expect in case you win the item. It also allows you to have a set budget.
3. Going to an auction with a vague goal. People go to an auction hoping to bring home something for a bargain. But if you ask some of these people what item they want to buy, they might just say "I have no idea" or "I just bid on everything and hope to win something". When you go to an auction, you should know what you want beforehand. Have a good idea on what's on sale and prepare for it.
4. Wrong perception on how the auction process goes. An auction house can become a battle ground and participants can transform into warriors fighting to win something. But that does not mean you have to fight in any way you can. Bidding is about strategy; knowing how and when to bid is essential. Do not engage in a bidding war if you are not prepared. Remember: even if you win an item, the final price is what matters.
5. Letting emotions take over. Emotions can run pretty high during the sale especially if two or more individuals battle over one item. Do not get carried away with the intensity of the moment or else, planning and strategizing will just become useless.
1. Bidding without planning. Participants without a plan on what to do and how to do things right will likely fail at any auction they go to. The auction process is a bit tricky and confusing so come prepared. Identify the auction goods you want to buy by looking at auction brochures provided before the auction date. Do some research on the items you are interested in. Know their current market value and set your budget. Not only will it set your priorities straight, it also gives you better chances of bringing home the items you really need.
2. Buying an item blindfolded. Not literally, of course. The point is, when you are trying to buy at an auction make sure that you have carefully inspected the particular item you are interested in. Doing this will ensure that you know what you are up to and what to expect in case you win the item. It also allows you to have a set budget.
3. Going to an auction with a vague goal. People go to an auction hoping to bring home something for a bargain. But if you ask some of these people what item they want to buy, they might just say "I have no idea" or "I just bid on everything and hope to win something". When you go to an auction, you should know what you want beforehand. Have a good idea on what's on sale and prepare for it.
4. Wrong perception on how the auction process goes. An auction house can become a battle ground and participants can transform into warriors fighting to win something. But that does not mean you have to fight in any way you can. Bidding is about strategy; knowing how and when to bid is essential. Do not engage in a bidding war if you are not prepared. Remember: even if you win an item, the final price is what matters.
5. Letting emotions take over. Emotions can run pretty high during the sale especially if two or more individuals battle over one item. Do not get carried away with the intensity of the moment or else, planning and strategizing will just become useless.
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!
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!
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