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Understanding The Basics Of Auctions

Thursday, March 23rd, 2017
bidding at a used car auction

First time auction goers may be a bit overwhelmed by the process of bidding. It is a good idea to gain some knowledge before attending your first auction. Bidding can quickly become confusing, so understanding the process before attending an auction will help you achieve success. You should understand what auctions are and why they are popular, as well as the auction process and how to bid properly.

What is an auction and why do they exist?

Auctions are a process of buying and selling a number of items by offering them up for bids. The auctioneer takes bids and sells the items to the highest bidder. Many auctions last for several hours. If the item you are interested in is brought up for bidding rather quickly, you don’t have to stay for the rest of the auction.

Auctions are popular for a number of reasons. Entire households place their items for auction if they need to sell them quickly. Auctions are also used by retiring business that need to sell their items before they move out of their space. Auctions are often the best selling format because they offer a way to quickly sell a lot of things over a short period of time.

The auction process

Auctions have a preview period that usually occurs one day prior to or a few hours before the sale. The preview period gives attendees the chance to look at items closely and make note of the ones on which they would like to bid.

Upon arrival, buyers will register at the front desk and pick up their bidder card. First time buyers may need to give their phone number, address, and driver’s license. Once the front desk records the information, the buyer will receive a bidder card or other form of identification. As the auction begins, bidders will watch as items are brought up one by one to be sold.

Placing bids properly at auctions

The auctioneer will describe each item briefly before starting the bid. The bid will start at whatever the auctioneer thinks is a reasonable price. If there are no offers for the starting amount, the auctioneer will lower the bidding amount. Things begin to become fast paced as hands go up and buyers begin accepting bid amounts.

The auctioneer choosing the bidding increments as the auction goes on. The price of each item will go up and some bidders will drop out as the amount passes what they are willing to pay. Finally, the auctioneer will come to an amount that only one bidder is willing to pay. That person will hold their bidder number up so staff can record it and the item will be set aside for the winner.

How to succeed at auctions

There are many of tips and tricks on how to get good deals at auctions. The best two things you can do to succeed is be prepared and stay focused. Be sure to always preview items you may be interested in and establish a bidding limit. Auctions are very fast paced, so it can be easy to get caught up in the excitement and over-bid for an item.

To learn more about how to bid at auctions, contact the experts at High Plains Auctioneers today. You can call us at (806) 244-6776 or Contact Us by email for more information about buying items at auction. Don’t forget to check out our Upcoming Auctions to see what we have available!