Mastering Tricks And Intrigues In Auction Room

By Emmanuel Omere

uction as a medium of buying and selling goods and services has been with us for many decades. And the advent of technology in today`s 21st Century world, has enhanced the value of auction as a system which enables potential sellers and buyers to meet and do business in a very competitive setting with both parties getting good value for their money. However, for a first-timer, understanding the intricacies of the auction market can be a huge challenge because of the intimidating and deterring atmosphere in the auction room. This book, MASTERING THE TRICKS & INTRIGUES IN AUCTION ROOM was written to help a bewildered first-timer in the auction room to understand the nitty-gritty of the auction process. It seeks to explain in a layman`s language the complicated processes that take place in the auction room as well as equip a first-timer with critical knowledge and information that will help such a person to understand what goes on in the auction room to achieve his or her objectives.

• Language: English
• Publisher: BooxAi
• Release date: Aug 11, 2023
• ISBN: 9781961552012

Book preview

1

What Is An Auction?

Essentially, an auction is a sales event. It is an occasion in which buyers compete for an item or items put on sale. The competition by buyers for the purchase of such items is done through submitting proposals or competitive bids for the purchase of the items or services being sold. At such sales events, prospective buyers try to outbid each other to purchase the items on offer.

 Auctions can be held live or conducted on an online platform. The item or service being offered to the buyers is sold to the person or team that submits the highest bid in an open auction, and if the auction is closed, the highest bidder gets the item.

Generally speaking, people participating in an auction do have high confidence in the auction process based on the fact that both the buyers and sellers believe that they are guaranteed a good bargain for their money.

The Auctioneer

The auction or sales event is usually initiated by a person called the auctioneer.  He is the one who will initiate the process of bidding, or if you like, the competition for the purchase of items that are to be sold. The auctioneer usually superintends over the bidding for the sale and purchase of an item. He starts the process by announcing the first bid, often in a loud and intimidating voice, and thereafter acknowledges every person who bids after that. And as soon as the bidding process is stopped, the auctioneer will announce the highest bid for the item on sale. 

Sometimes an auctioneer can act in a manner that is intimidating while the auction is going on. In the auction process, the auctioneers act as the middlemen between buyers and sellers. Their role is to match two parties (buyers and sellers) whose selling and buying prices for an asset are similar. In the auction process, the sellers (owners of the property or services being offered for sale) and the buyers do not communicate or negotiate the price of the commodity directly that is to be sold unlike what happens in over-the-counter transactions where buyers and sellers communicate to reach a consensus on a buy and sell price.

 The sale of each item presented for sale usually begins with a low bid, and the attendees will openly bid against each other in the hope of outbidding one another, and the highest bidder goes home with the item.

The Auction Process

As we have explained earlier, an auction is a process via which people buy and sell goods or services. The goods and services are offered to buyers by sellers. The buyers submit bids which are collected by the auctioneer, who then sells the items on offer to the highest bidder. The buyers usually lookout for the lowest bids for the items to be sold.

The auction process is comprised of several steps, such as the following:

Inviting bids

Receiving bids

Evaluating bids

Accepting bids

The above is the procedure usually followed in an auction to arrive at the best price for the sale of items on offer. In the auction process, buyers openly contest against one another. When a bid is made, someone produces a bid that is higher than the previous bid. The eventual selling price of the item being auctioned, therefore, emerges over the course of the open competitive bidding.  A good auction process, therefore, should yield the highest price. Over the years, the auction process has become the mechanism through which several important goods and services are sold. These items include, among others, the following:

Companies

Licenses

Houses

Cars

Artefacts

Wines

Commodities

Property ordered to be sold by Courts of law

Types Of Auctions

Generally, there are different types of auctions. They include:

Openingauctions

Day-ahead auction

Intradayauctions

Closing auctions

Opening Auctions

These determine the opening price of an asset on an exchange by matching buyers with sellers. The most commonly-traded figure becomes the price at which the asset opens on the market. The opening auction allows for the entry, modification, and deletion of