You may look forward to an auction for securing all the articles that you would not normally be finding elsewhere for sale. Any object is sold to the highest bidder in the public sale known as auction. There is involved the process of purchasing and selling of objects by offering them up for bids, taking the bids and selling to highest bidder. Though usually it is the highest bidder to whom the object in question is sold off to there may also arise the case of auctioning wherein a sale to the lowest bidder actually takes place. Such may be the case when land is sold for non-payment of taxes to anyone willing to take it for the shortest term. Online auctions have also come up in recent times.
In auctioning the seller sells the objects for sale on a public platform. The product’s selling price id ascertained by the bids or offers made by the persons who are interested in buying them. Each such person has a particular estimation of value of the product and a need for the product. Based on these they fix up their bids. It is the person offering the highest bid who receives the right to purchase the product at the bid price at closing of auction and is also legally bound to do so.
- English auction: This is referred to as a ‘normal’ auction. The item auctioned is sold off to the highest bidder regardless of the price at the end of the auction. Since a sale is guaranteed here this generates maximum response from the market place and involves considerable excitement and participation on the part of the buyer. Social Security Attorneys: At Your Service!
- Minimum bid auction: In this kind of auction bids at or above a minimum price published are accepted. This involves a lower risk for the seller, as the sales price must lie above a minimum acceptable level.
- · Reserve price auction: This is an auction that is subject to confirmation. The seller of the object in question sets an unpublished price. The seller need get this to sell the particular item. So, as bids are placed the ‘reserve not met’ or ‘reserve met’ indicator is posted.
Each of these auction types has its takers. The point is to make the products available to their seekers while assuring worthwhile gains for the sellers.