From rural auctions featuring equipment and livestock, to automotive auctions where the rich and famous bid on elaborate sets of wheels, to Internet auctions where bargain hunters shop from the comfort of home, auctions provide exciting places to shop, or just sit back and watch the action unfold.



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:

* English Auctions: The granddaddy of all auction sales, this is the basic style that pits bidders against each other in an open forum. The item goes to the person who bids the highest amount.

* The Dutch Auction: Basically the opposite of an English auction, this kind of sale has the auctioneer offering each item at a premium price, and then lowering the price incrementally until someone agrees to pay that amount. It can be a stressful game of chance, causing buyers to jump in and pay too much, rather than lose the item to someone else at the next lower price. It only takes one bid to end the sale, so Dutch auctions can be practical ways to sell items quickly.

* Sealed First Price: Similar to a "silent" auction, this type of sale involves a simultaneous bidding by all potential buyers. However, no one knows the other participants' bid amounts. Whoever bids the highest amount gets 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.

* Buy-out Auctions: Similar to English auctions, buy-outs feature items offered for sale at predetermined prices. Anyone who wishes to pay full price may do so. These are sometimes known as "buy now" prices. If no one in the group offers to pay full price, the bidding begins and the highest bidder wins the auction.

* Open Outcry Auction: This is the kind of auction most often seen at commodities and stock markets. At an open outcry auction, trading happens simultaneously in all corners of the arena. With the advent of the Internet and modern communications technology, these auctions are being replaced by electronic trading platforms that operate over the worldwide web.

Auction sales are perfect venues for buyers to find all sorts of affordable treasures. Antiques, artwork, cars, collectibles, real estate and countless other types of new and used commodities are put on the block and sold to the highest bidder. With crowds of interested buyers flocking to these types of sales, the auction action can quickly escalate. When more than one buyer is determined to win the prize, competition can be fast and furious. In the end, the final sale price can easily exceed the actual value of the item.

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.

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.