What is an Auction?

In some areas of the United States and the world, auctions are the primary method for selling real estate and personal property. In many other areas, this is not the case. If you are familiar with auctions this information may be elementary. If auctions are not common in your area, hopefully this article will help you better understand what exactly an auction is and what purpose they serve.

Auctions are not new, they date back to as early as 500 BC. Auctions have been employed by a wide variety of civilizations for a number of purposes throughout history. A couple of examples include the Romans using auctions to liquidate property of debtors and colonels during the Civil War dispersing of confiscated military equipment via auction. So what exactly is an auction?

An auction is a transparent method of selling goods by taking bids placed by buyers (bidders), with the ultimate goal of selling items to the highest bidder at fair market value for sellers. So how is this age old method of selling prevalent in todays world? You may be familiar with high end auction houses such as Sothebys and Heritage, they typically sell art for the eye popping numbers that you see in the news. You may see collector car auctions on TV from Barrett Jackson or Mecum. You may also have attended a benefit auction for an organization you are involved with. These are all great examples of auctions in todays society, but these are relatively specialized areas of the auction industry that only to apply to a segment of the population that may need the services of an auction company. Many auction companies across the country are small businesses focused on providing clients with asset solutions in a timely manner. Many times auctions can be helpful to estate executors settling an estate, business owners liquidating a business, or collectors looking to sell their items. This is especially true when a seller is under a time constraint. Auctions are particularly helpful because you can set the timeline that works best for you, there are other pros to using an auction as well. Auctions are used to sell a wide variety of assets including real estate, vehicles, equipment, art, jewelry, and more. These auctions can be conducted Reserve or Absolute. They can be done in Live, Online, or Simulcast formats. At Pearce & Associates, we mainly specialize in online auctions of Estate Assets, Business Liquidations, Collector Cars, and Real Estate. Many of the assets types listed above fall under these categories. If you are still curious to learn more about auctions or believe an auction might be helpful to you or someone you know, please reach out to us using the button below.