Fun, fast and frugal - auctions hold sweet deals
The gavel, the podium, the paddles with numbers on them - all these come to mind when you hear the word "auction". Nowadays, the world of auctions has moved beyond the stuffy auction room to your computer. Here's an outline of both types, and some tips and tricks for each.
History of auctions
Auctions go way back and have a sordid history. The first auction purportedly occurred in Babylon in 500 B.C. Women were auctioned into marriage and servitude in this ancient society.
Later, Romans would auction off the spoils of their victories to recoup some of the losses incurred by their campaign.
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Fun, fast and frugal - auctions hold sweet deals
The gavel, the podium, the paddles with numbers on them - all these come to mind when you hear the word "auction". Nowadays, the world of auctions has moved beyond the stuffy auction room to your computer. Here's an outline of both types, and some tips and tricks for each.
History of auctions
Auctions go way back and have a sordid history. The first auction purportedly occurred in Babylon in 500 B.C. Women were auctioned into marriage and servitude in this ancient society.
Later, Romans would auction off the spoils of their victories to recoup some of the losses incurred by their campaign.
After the French Revolution, daily art auctions became the norm in cafes and taverns.
The auctioning world was once again turned on its ear with the popularity of eBay and other Internet auctions.
Modern "live" auctions
You can now get almost anything at an auction, with the most popular items being antiques, furniture, jewelry, artwork and collectibles. Some high-end and high-profile auctions are held by auction houses. The most notorious of these are Christie's, Sotheby's and Bonhams. There are also auction houses in every corner of North America for local items and debt auctions.
Types of auctions
Who knew there were so many types of auction. Here is a brief outline of the most popular types:
English auction: Each item in this type of auction is assigned a reserve price that must be reached before the purchase can happen. An auctioneer starts with a minimum bid, and the bidding starts. People interested can bid on a price and can start bidding wars. The sellers at this type of auction love when a bidding war breaks out.
Dutch auction: The Dutch auction is almost an exact reversal of the English auction. The auctioneer starts with a high price and lowers it until someone agrees to pay that price.
Silent auction: A silent auction is similar to an English auction in that the highest bid wins the item. It differs in that the bidders write their bid down on a piece of paper that is not shown to any other bidder. Bidding wars don't break out, but the winning bid could be significantly higher than the next highest bid. These are often held to raise money for charity.
Internet auction: The advent of the Internet has led to the popularity of this type of auction. Auction sites like eBay and uBid have increased their traffic and participants exponentially. Anyone with a computer and an Internet connection can post items online, and the same goes for bidders. These are based on the English auction style.
Tips for successful bidding
Have a target price in mind. This will ensure that you don't pay too much for your desired item.
Keep a cool head. Try not to let adrenaline take over. Having your top price in mind and sticking to it will help you do this.
Attend the preview and ask questions, if it's a live auction. Don't forget that you can often ask questions of Internet sellers as well. This will help you make a good decision.
Tips for successful selling
Watch for hot items. Items that are in demand will garner higher bids. For instance, hold onto your Louis XV chair until a movie about his life comes out.
Keep potentially valuable items in good condition. Don't refinish that antique armoire even if you really really want to. You will get more money if your item has an original patina. Also, keep your valuables in a safe, dry place.
Good luck, and happy bidding!
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