What to do at an Auction?

Feel free to just get your feet wet — don’t think you have to go to your first auction ready to bid. Attend an auction or two in your area to get a feel for how they are conducted. Watch and listen, then move on to bidding if that makes you comfortable.

Many auctioneers spend some time addressing commonly asked questions and explaining how the auction is going to work. Some even conduct pre-auction or practice sessions, or brief tutorials, about the auction process. If you’re interested in going to your first auction, check with local auctioneers to see if they offer such a service.

Always remember that at an auction you’re free to ask a question if you don’t understand something. Auctioneers and their staffs want people to continue to come to their auctions, so they’ll do all they can to encourage repeat business! Ask a question of a member of the auctioneer’s team, and they’ll find the answer for you.

When you arrive an auction site, register for a bidder number and read the rules printed on or displayed on posters, brochures or handouts. Again, ask questions if you don’t understand a policy. Inspect the merchandise you’re interested in, as most is auctioned on an "as is, where is" basis. This means it is not guaranteed. When you buy an item, you become responsible for it. And, keep in mind that you’ll pay for the items you purchase before you leave the auction, even if you aren’t taking everything with you that day.

In order to bid at an auction, you need to make contact with the auctioneer or the ringperson. A ringperson is someone who takes bids from the audience and then passes those on to the auctioneer. To bid, hold up your bid card, your hand or shout "yes." The auctioneer or ringperson will make eye contact with you, take your bid and immediately turn and seek another bid. You can remove yourself from the process at any time by shaking your head "no" or saying "no" if the auctioneer or ringperson turns your way. Should an auctioneer or ringperson misinterpret any of your signals, simply report the mistake right away.

Auctions offer many benefits to buyers and sellers alike.

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What is the Auctioneer saying?

The chant — that rapid-fire, quick-cadence combination of numbers, words and sounds that keeps an auction clipping along — is one of the most identifiable features of auctions and auctioneers.

Fascinating, sure. Remarkable, undoubtedly. Exciting, obviously. But what the chant is in its simplest form is communication. It’s an auctioneer’s way of telling bidders what they need to know regarding the sale of a particular item at its time of sale. And, because an auctioneer’s job is to sell the most amount of property quickly, the chant is frequently fast.

In simplest terms, the chant is merely a series of numbers connected by "filler" words to give the buyer time to think between bids.

The chant is part of what makes an auction so unique.  And though professional auctioneers are much, much more than just fast talkers, the chant is one of the most intriguing parts of an auction to many people.

The rhythmic chant, developed over the years, is a way of creating excitement and moving an auction at a steady pace. No one seems to know for certain when or where the rhythmic chant used by most North American auctioneers originated. It just seems to have evolved of necessity as auctioneers saw the need to sell items in a more rapid manner. Unlike other types of sales, an auction is a one-time event where all the customers are present at the same time. Thus, the auctioneer is responsible for selling all the items within a few hours, and his or her use of the chant helps keep the items moving.

A basic auctioneer chant goes something like this:

The filler words are everything except the numbers. Filler words are used to remind buyers of the last number bid and to give buyers time to consider whether they want to bid higher. Think of filler words as carriers -- the filler words "carry" the numbers, which are the most important part of the chant. Using filler words that connect and roll, auctioneers create a steady rhythm in their chants. The rhythm enables the crowd to listen longer and faster by keeping the bids at regular intervals. This helps the bidders know what to expect next and to keep the bids coming at a constant pace.

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What is an Absolute or Reserve auction?

Take a look at many advertisements for auctions, and you're bound to see the words "absolute" or "reserve" making their way into the text.

Have a conversation about auctions with an auctioneer, and chances are you'll hear the words at some point. The two words are part of auction jargon, part of the lexicon of language that surrounds the auction industry.

Auctioneers use the words "absolute" and "reserve" to describe an auction and how it will be conducted.  Calling an auction "absolute" or "reserve" tells bidders what the auction rules are, so to speak.

An absolute auction is one in which the property is sold to the highest qualified bidder with no limiting conditions or amounts. The seller may not bid personally or through an agent. Absolute auctions can also be called auctions without reserve.

Say, for instance, that a piece of real estate — a home — is being sold at absolute auction. The qualified bidder who makes the highest bid during the auction will purchase the home.

A reserve auction, or an auction with reserve, is an auction in which the seller or the seller's agent reserves the right to accept or reject any and all bids. A minimum acceptable price may or may not be disclosed and the seller reserves the right to accept or reject any bid within a specified time.

Say, for instance, a seller has a boat being offered at a reserve auction. The seller can decide, based on the bids, to sell the boat or to reject to sell the boat for the amount offered during the auction.

Both types of auctions may be utilized on behalf of clients. Both are valid forms of auctions; the two simply are different ways of conducting the auction on the client's behalf. Unless stated otherwise, an auction is presumed to be with reserves.

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