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by: ArdisMyles
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Auction sales are traditional ways for sellers to find buyers, and for buyers to find bargains.

Auctions come in all types, from rural auctions featuring livestock and equipment, to free-wheeling automotive auctions where the rich and famous bid on rare and classic cars, to Internet auctions where bargain hunters can shop right at home. Every type of auction is fun and exciting, whether you're an active bidder or a quiet spectator.

Every auction is based on the premise of a group of buyers bidding on sale items. The items are presented for sale individually, sometimes with set starting amounts, and the bidding begins. Potential buyers increase their bid amounts and the selling price gradually goes up. Then, when the gavel drops, the highest bidder is declared "winner" of that item. Another item is then placed on the auction block and the action continues. Auction sales can be very good forums for determining the real value of particular items, especially when collectors are involved. When people really want certain items, money is sometimes no object at all.

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.

* Sealed First Price Auction: In this kind of auction, all potential buyers place their bids simultaneously, but no one knows the bid amounts of the other participants. The person who bids the highest amount gets the item for his or her suggested price.

* Vickey Auction: In a vickey auction, a bargain hunter gets a little more of a bargain. The person who bids the highest price wins the item, but only has to pay the second highest 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.

Auction sales can offer buyers a quick and easy avenue to pick up all kinds of items. Collectibles, real estate, antiques, cars, artwork and countless other commodities, both new and used, are put on the block and available to the highest bidder. These types of sales draw crowds of interested buyers, and the auction action can quickly heat up when more than one buyer is determined to win the prize. The competition can be fierce, and final sale prices can easily exceed the actual values.

Most auctions are led by qualified auctioneers who are hired for a flat fee or a predetermined percentage of the proceeds. These professionals can provide information about the community and its buying preferences, as well as hints on obtaining 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.

If you get tired of mall walking, and find that rummage sales are little more than rubbish sales, scratch your bargain-hunting itch at an auction sale. It's an exciting experience, and you can bag a real bargain on just about anything you're looking for.

About the Author

Columnist Ardis Myles provides material for several popular web sites, on top home based business and device drivers themes.

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