What are the things you need to know about the bidding process?
- What is an Auction?
- What is Bidding?
- Auction and Bidding
- Tips and Tricks
The bidding process is the most important part of an auction. In the Philippines auction market can buy and sell cars, furniture, and gadgets for a lower market price. To successfully participate in an auction, it’s wise to research beforehand and be prepared for any possible outcome.
Be careful not to shoot a maximum bid from the start. Participating in an auction is a modern way to liquidate assets and quickly sell collectibles, furniture, car parts, and miscellaneous items. In other countries, storage can also be auctioned off. Look into the bidding process by reading more below!
What is an Auction?
An auction is a method of buying goods and services by bidding. Bidders compete against each other for the highest bid. An item is put on for sale and auctioneers start with the lowest possible price to entice bidders to place their best bid.
The price of the item increases each time a higher bid is placed. If there are no higher offers, the item is sold to the highest bidder. Auctions are not only used for collectibles and rare items, but it’s also useful for investment banking.
Auctions originated in ancient Greece where women were auctioned off for marriage. At the time, women who get married without being auctioned off is considered to be illegal. Early auctions in the United States were used to sell produce, estates and slaves.
High ranking American soldiers also used to sell their plundered goods in auctions. Auctions in the Great Depression helped individuals and businesses liquidate and sell their assets quickly. The word auction comes from the word Latin augere which means to “increase” or “augment”.
In England during the 17th and 18th century. Candlelight was heavily utilized in auctions to signal when the auction was over. It was used to keep people from knowing the end of the auction and to prevent any last minute bids. It was believed when the fire on the wick would flare up, it was the time to say the final winning bid.
The first auction house was founded in 1674 in Stockholm Auction House in Sweden. On the other hand, the second largest auction house in London is Sotheby which was founded in 1744. The largest auction house is also in London, founded in 1766 by James Christie.
What is Bidding?
Bidding is the act of offering a competitive price for a commodity. A commodity can be a property, vehicle, and more. The offering price is called a bid.
The bid is the highest price payable for a commodity at a certain time. Bidding is used to create competition to increase demand in the commodity. The bid is the price for the stock.
“The Ask” represents the price a seller is willing to accept for the trade. It’s an offer of a specific amount of money for goods and services. Bidding is also used for the acquisition of a company.
Before an auction begins, the items for sale are to be previewed to potential bidders. The preview shows off the condition of the item. It’s always a good idea to attend a preview prior to bidding even if pictures are viewed.
Once viewing of items is finished, it’s time for the registration of the auctioneer. It requires buyer details such as phone number, address, and identification. Each registered bidder is then given a bidder card that’s used for identifying the participants.
Auction and Bidding
The start of the auction begins with the bell. The auctioneer gives a brief description for each item and opens the bid with an opening price. Sometimes an item already has a minimum price that’s set by the seller.
Bidders begin to outbid each other for the item and use their bidding cards to call out their bids. The auction ends when there are no more subsequent bids after the highest.
Tips and Tricks
Attend a preview prior to the auction. It helps buyers to make sure that the items they’re getting are accurate to the photos and description. Auctions can bring out the competitive side in a person, it’s best to set a limit and stick with it to avoid overspending.
Naturally, inspecting the terms of payment. Some auctions require a refundable deposit. Lastly, check the delivery options and pick up options. Some auctions charge fees for storage and pickup.
Now that the bidding process is dissected, preparations for an auction in the Philippines locale should be easier. Prepare to explore the buy and sell of cars, furniture, and gadgets through live or online auctions. Compete with others for the highest bid to take home the item.
Remember to attend a preview to scope out the items to be purchased. Take note of the registration time and bring all the requirements. Wait for the bell that signals the beginning of the auction.
Set a personal limit and research if the auction accepts checks, credit, or cash. Bid wisely and carefully to get the best price for the items on sale. Bidding is not just used for commercial commodities but also for business and services.