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If you’re a bargain hunter looking for great deals on unique items, try your local auction sale. Bidding is not only fun, it’s a great way to bag a big bargain.

There are rural auctions featuring livestock and equipment, free-wheeling automotive auctions where the rich and famous bid on rare and classic cars and Internet auctions where bargain hunters shop from the comfort of home, antique auctions and more. All of these bring excitement, whether you’re placing a bid or just biding your time as a spectator.

The basic premise of an auction is to have a group of buyers bidding on sale items. Each item is presented for sale and the bidding begins, often with a set minimum amount. Gradually, the selling price goes up as potential buyers increase their bid amounts. When the gavel drops, the highest bidder is declared “winner” of that item. Then, another item is placed on the auction block and the action begins again. An auction sale can be a good way of determining the true value of certain items, especially when collectors are involved. People who really want particular items are willing to pay a top price that reflects the value.

There are many types of auctions, and the basic premise is the same. There are, however, specific rules and regulations in place for each type of auction:

* The English Auction: This is the granddaddy of all auction sales. It’s an open sale with bidders working directly against each other. In the end, the item will go to the person who bids the highest amount.

* Dutch Auction: Basically opposite of the English auction, a Dutch auction begins with the auctioneer offering the item at premium price, and then lowering his offer in increments until someone agrees to pay that amount. This is almost a game of chance, as buyers will jump in and pay a little more for fear of losing the item at the next lower price to someone else. Dutch auctions are practical ways to auction items quickly, as it only takes one bid to end the sale.

* The Sealed First Price Auction: With this type of auction, all bids are made simultaneously. However, no one knows how much other participants have bid. Of course, the person who bids the highest amount will get the item at his or her suggested price.

* Vickey Auctions: Bargain hunters get an even bigger bargain at a vickey auction. The person who bids the highest amount will win the item, but is only required to pay the second highest bid amount.

* The Buy-out Auction: A buy-out auction is similar to an English auction, with goods offered for sale at predetermined prices. The auction begins, and anyone wishing to pay full price may do so. The preset amount is sometimes known as the “buy now” price. If no one wishes to pay the full price, open bidding will begin. The highest bidder will take the item.

* Open Outcry: Most often seen in the stock and commodities markets, an open outcry auction involves trading in all corners of the arena. The growing popularity of the Internet and modern communications has seen this type of auction being replaced by electronic trading platforms operating over the worldwide web.

At an auction sale, a buyer can find a quick and easy avenue to pick up all kinds of items. Cars, collectibles, real estate, antiques, artwork and countless other new and used commodities are put on the block and sold to the highest bidder. Crowds of interested buyers flock to these types of sales, and the auction action can quickly escalate when more than one buyer is determined to win the prize. Competition can be fierce, and final sale prices can easily exceed the actual values.

Qualified auctioneers are hired for a flat fee or a predetermined percentage of the proceeds. These professionals know about the community and its buying preferences, and can provide hints and advice to obtain the highest price for one’s property.

Most auctioneers in the United States are licensed by the state after completing a series of oral and written examinations. An auctioneer must be reliable, with proven integrity and a good reputation. In addition to leading the sale, auctioneers are responsible for publicizing the events and resolving any disputes or conflicts that may arise during the sale.

When you’re tired of mall walking, and rummage sales prove to be little more than rubbish sales, try scratching your bargain-hunting itch at an auction sale. It’s an exciting experience, and you’re bound to find a great deal on just about anything you’re looking for.

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Tags: Auctions