TIPS, HINTS AND DEFINITIONS
for the Soul
auction is defined as a public sale of goods or property in which prospective
purchasers bid until the highest price is reached.
never purchased through an auction before, you may be reluctant to participate
in one. But if you follow these tips, you'll soon find yourself not only comfortable
with the auction process, but anticipating making your first bid!
You can bid on an item without attending
an auction personally by submitting an "absentee bid". The bid is submitted
on an item prior to the auction starting by whatever means the auctioneer has
Not a true auction. Confidential bids
are submitted and opened only at a predetermined place and time.
Absolute auctions are won by the highest bidder without any
limitations or reserve prices being imposed
This type of auction has a number of items offered at the same price, the highest
bid for the most items wins the bidding.
an item is valued or confirmed by an auctioneer it is known as an appraisal the
person doing appraisals may also be known as an appraiser.
Items sold at auction are 99% of
the time, sold in "as is" condition etc. This means that all sales are
final regardless of what flaws are found on a particular item after the sale.
It is not the auctioneers 'duty' to examine the item for flaws - they are simply
auctioning the item. This is why getting to the auction early for the preview
is so important so you know exactly what you're going to be bidding on.
The person who conducts
an auction sale
Usually refers to auctioneers
who hold auctions at their own premises, the company is referred to as an auction
These auctions are usually held
in a location different to where the actual goods for auction are kept. Viewing
of the goods will have taken place prior to the auction.
An auction where a seller has listed multiples of the same item. All winning
bidders pay only the lowest successful winning bid amount.
The price reached by the auctioneer when the hammer or gavel is
A strategy used by auctioneers to gain
attention and to stimulate an audience when the auction is going slowly. He puts
up a lot, asks an unusually low opener and quickly knocks the item down (declares
it sold) to first bidder.
bid suddenly higher than other increments. Here is an example of a 'Jump Bid'
situation: Two bidders or more are competing for a particular item and the auctioneer
is calling the next increment, say $25 when a bidder exclaims, "I bid one
hundred dollars!" Such a bidding strategy provides shock value to the competing
bidders and more often than not, the 'Jump bidder' wins the lot.
On Site Auctions
If a company has gone into liquidation and its assets
are to be sold at auction that auction sometimes will take place at the company
site rather than at an auction house , this is done when it is not practical to
transport the goods to the sale the goods are sold "On site".
The auctioneers often place details of the lots for
auction on their website. This can be in HTML, i.e.. as a web page, or can be
a file made available to you for download. ( Both a page of HTML and a file for
downloading can be saved to disk on your machine for viewing off-line )
Bidders identities are not disclosed in this type
Submitting a confidential maximum
bid to an auction service. The auction will automatically increase the bid to
maintain the high bid. The proxy bidding will stop when the bid has won the auction
or reached the limit of the proxy bid. The online auction company, eBay is on
a proxy bidding system.
The seller has set
a minimum (reserve) price for the lot and can decide wether to accept or refuse
a bid. The reserve price may not be disclosed.
An auction where a seller has listed multiples of the same item. Each winning
bidder pays their exact high bid.
are goods sold at auction?
are several reasons why goods may be sold at auction and it is important to know
why the goods are being sold and where they came from, this information can be
found by consulting with the auctioneers before the sale or it may be stated in
the catalogue of lots relating to that auction sale. One of the following may
- The goods are being sold to raise cash to
pay of debtors if the previous owner has gone into liquidation, receivership or
- The goods are being entered in the
hope of a dealer making a profit from their sale.
goods are being sold by the owner to create space for new stock
goods are surplus to the owners requirements due to new stock being acquired.
- The goods have been part of a leasing agreement and the
term of lease has ended and the goods are not required by the leasing company
who are now the legal owners.
- The goods will not
sell any other way due to poor demand or over supply.
goods may be part of an illegal consignment and have been confiscated by an official
department who now wish to dispose of them.
goods may have been stolen and the previous owner cannot be traced by the appropriate
- The goods may be government department
or armed forces surplus stock due to being out of date or over stocked.
type of goods are auctioned?
about anything can be sold at auction here are some examples
Furniture - Jewelry - Antiquities - Artifacts - Clocks & Watches
Paintings - Sculptures
Stamps - Coins - Books
- Postcards - Medals - Print - China & Glassware - Memorabilia - Baseball
and other sports cards - Autographs - Hunting & Fishing
Caravan & Camping - Marine - Aviation - Sports Goods
Houses - Flats - Land - Commercial Premises - Warehouses - Workshops - Studios
Furniture - Appliances - Fridges - Freezers - Washers
- Dryers - Electrical Goods - Hi-Fi's - T.V's. - Videos - Clothing - Carpets -
Beds - Garden Equipment
Foodstuffs - Wines -
Spirits - Beers -
Equipment - Furniture - Consumables
- Telecommunication Equipment
Home Systems - Business
Systems - Parts & Peripherals - Printers - Scanners - Modems
Cars - Vans & Commercials - Trucks & H.G.V. - Motorcycles - Vintage
- Motor Parts
INDUSTRIAL PLANT & MACHINERY
Plant & Machinery - Engineering Machinery - Printing, Chemical & Fabric
Equipment - Commercial Catering Equipment - Stock Materials - Scrap Materials
Buildings - Machinery &
Tools - Livestock - Vehicles
Armed Forces - Government
Department Stock - Seized & Confiscated Goods
does an auction work?
you arrive at the auction site you will need to register with the American Eagle
Auction registration clerk in order to obtain a bidding number, the information
required is usually your name and address along with proof of identity such as
a valid drivers license or other form of positive identification. In certain cases,
you may also need to pay a returnable deposit. You should be familiar with the
registration requirements for the particular auction before you arrive in case
a large deposit is required.
If you have not viewed the lots for auction
prior to the auction day you will need to allow yourself time to inspect your
prospective purchases before the auction starts if this is allowed, some auctions
may not allow you to view the lots other than in the specified viewing dates and
times, with some "catalogue" auctions you may not be allowed to view
the lots after the auction has started. You should confirm these details with
the auctioneers prior to the auction date.
When a lot you are interested
in bidding on comes up for sale the auctioneer will announce the lot number (
either found in the catalogue next to the item or placed on the item during the
viewing period ) and give a brief description of the item usually tied to the
description given in the catalogue.
A starting bid will be suggested
by the auctioneer and usually bidding will start below this price so do not assume
the auctioneers starting bid is the lowest price available. If the item has a
reserve price the auctioneer will often start the bidding above this price and
reduce the start bid towards the reserve price until a bid is made. The auction
catalogue will usually display a guide price for the item which is above the items
You are free to start bidding at any time after the auctioneer
has announced the starting bid. Some auctions especially liquidations, bankruptcies
and receiverships have no reserve prices so give it a little time before you start
your bidding, if there are no other bidders your first bid may be the price you
If similar lots are listed together in the catalogue and you are
the buyer of the first lot you may then have the option to purchase the similar
lots at the same price as the first.
When bidding it is usual to get
the auctioneers attention by raising your hand or making some other clear gesture
to the auctioneer followed by the amount you wish to bid if different to the auctioneers
announced price. Now you have started bidding the auctioneer will return to you
every time the bid is against you to see if you wish to raise your offer, a clear
shake of the head will indicate to the auctioneer that you do not wish to continue
Bids go up in steps controlled by the auctioneer
and until the bid nears the assumed final price a bid of less than this amount
will not usually be taken.
If your bid is the final bid and the price
reached is above the items reserve price you have been successful in your purchase.
After you have won the bid you will have to pay an immediate deposit, the
amount of deposit will be stated in the terms and conditions of the auction catalogue.
The type of payment method i.e. cash, bank drafts, credit cards will be stipulated
in the catalogue.
The amount of time given to pay fully for the purchase
and clear the goods from the auction house will also be given in the catalogue.
it is usual for the goods to be the responsibility of the purchaser after the
hammer has fallen
If the items for auction are large,
heavy or difficult to move, representatives of removal companies will usually
be present, but this is worth checking with the auctioneers before you make your
travelling any considerable distance to the auction, you should obtain a catalogue
of items to ensure the goods for sale are what you require.
can be subject to cancellation at short notice and it is therefore a good idea
to phone on the morning of the sale to confirm the sale is going ahead.
should inspect the items thoroughly as most auction items are sold without guarantees,
if items are described as faulty check that the faults can be easily repaired,
sometimes you can test the goods before the auction starts, ask the auctioneer
if this is possible.
Some motor vehicle auctions give you a period of time
after the sale in which to return the vehicle if it is found to be faulty, again
check this with the auctioneer prior to bidding.
about setting yourself a price limit on the goods you are interested in and "stick
to it", how much would the item cost new with a guarantee?
"buyers premium" may be added to the final bid price at some auctions
and local taxes may also be added to the price ( check the "conditions of
sale" in the catalogue or consult the auctioneer before bidding )
are not set in stone and items listed can change.
out for any changes stated by the auctioneer in the description they give of the
item at the start of bidding.
- If you bid for the
wrong lot, tell the auctioneer immediately, although you have a legal obligation
once you have won the bidding the auctioneer may present the item for auction
again, but this is purely at the auctioneers discretion and you may have to make
up any difference if the final price is lower than your original successful bid.
Your Auctioneer! Whether buying or selling, ensure your auctioneer
is a member of a recognized professional organization where members are governed
by stringent by-laws, a Code of Ethics and there is a grievance committee to resolve
disputes. Furthermore, make sure you're auctioneer is certified through a professional
Come to Watch !
There's no question that live auctions can be an exciting and rewarding experience.
Furthermore, it's also a great learning experience which is fun for the whole
family. Bring a friend, a date or just yourself!
The Difference! All auctions are not created equal! A vehicle auction
proceeds differently from an antique or fine art auction. Even if you're familiar
with a particular type of auction, if you plan on attending a different type it
will benefit you to observe first, bid later!
TheAuction Preview! American Eagle Auction Company has a viewing time
the day of the auction. Inspect items of interest thoroughly -- most items are
sold "as is, where is". This is your time to make the decision of whether you're
interested in the item or not and how much you plan to spend
aware of the Rules! Policies of each auction house are posted or included
in the flyers, catalog, website etc. .Study and know them by heart. Most auctions
have a "buyer's premium" added to the final bid price.What forms of payment are
accepted? Credit cards, checks, money orders, cash etc. If you're not clear about
something, be sure to ask the auction company for clarification.
the Item(s) Do appropriate research on the items you plan to bid on.
Many collectible items have variations to them. Knowledge is power and don't rely
on the auctioneer to provide you with the in depth history of such items. The
auctioneers role is to sell and your role is to know what you're bidding on.
your Price! It happens to the best of us. We get caught up in the competitive
bidding frenzy and we loose control over our senses by sometimes bidding a little
(or alot) more than anticipated. Once you're 'in' there's no backing out so stick
with your prices.Keep in mind that taxes and/or buyer's premiums may be added
to the final bid.
Listen To The Auctioneer!
Prior to the start of bidding on each item, the auctioneer will call out the lot
number and a brief description of the item. Listen for any changes from the catalog
description (the catalog are a guide, not a guarantee!) Make sure the lot is the
one you planned to bid on.
When an item means a little bit more to someone else than yourself, then hold
on to your wallet or purse and cease bidding. When the auctioneer looks at you
for your bid, just shake your head 'no' so he's aware that you're no longer interested
Check Out - When you're
ready to leave the live auction. It's time to finalize your successful bids with
the cashier. Now it's time to enjoy your exciting wins!
Go to Sleep! After reading all of this, you must be tired.
Home Page | Upcoming
Auctions | Appraisal Services | Real
Estate | Fundraising Auctions | Ebay
Training | Ebay Trading Assistant Program | Educational
Articles| Auction Your Items | Contact
need to take charge and contact your NAA auctioneer today!
Copyright © 2006 American
Eagle Auction Company. All Rights Reserved..
site is dedicated to the auction method of marketing and appraisal services in
the state of Michigan by auctioneer Ken Lindsay of American Eagle Auction & Appraisal