.
If there's no reserve it means they take the highest bid, doesn't matter if it's the only bid.
Hello Rosie:
Of course, I know.. Absent any other agreement, when an auction house says that an item has no reserve, that's a contract.
excon
In Australia the sale is usually passed in if it doesn't reach the reserve price.
It's at the discretion of the seller.
The auctioneer will reach a point of saying something like "we're in the market now"
which means the reserve has been reached and all further bids are now serious.
Wow. That's kinda dangerous then isn't it excon? What if something is worth thousands and no one wants it so one person bids $1? That's a binding deal? Would you put anything up for auction with no reserve? That seems really foolish to me. Thank you for your reply m'dear! :)
But if there is no reserve then no matter what the value is if someone bids $1 and that is the only bid it has to be turned over to the lone bidder? That's a really big gamble. Thank you for your reply hartfir e! :)
There is always a floor. You cannot bet 2 cents for something that has a bottom price of say, $10. When they start the bid at a certain amount, you cannot go lower. So if you are the only bid and it is 10 or more, it needs to be accepted.
So if something is worth thousands of dollars and only one person makes a bid no matter what that bid is the person gets it ? $1 bid would confer ownership even if something were worth thousands of dollars? My goodness! Thank you for your reply T Angel and Happy Wednesday! :)
No one over here ever puts anything up without a reserve. It's automatic.
If they want to let it go cheaply they take it to a garage sale or give it to charity,
or just put it on the verge on council throw-out days when people cruise around to scavenge the best.
Good morning Rosie.
First, there are several different types of auction.
One is called a forced sell. These are auctions of items which have been put under a lein, such as Real estate, storage units and the like , where the lienholder auctions off the items in an effort to recoup the fees or the loan amount.
There are types of "short sales" or Probate sales where an offer can be denied by the bank, or probate court. This usually happens with real estate which has been foreclosed. These auctions are usually the "sealed" type of auction where you submit a sealed bid, the other bidders do not know each others bid. If that property does not sell through those channels the property in question may be put up for auction where highest bidder wins. These type of offerings you would find in the Legal notices section of the local paper.
There are also the Penny Auctions. These are what you would find on line. This requires each bidder to pay a fee for each bid. So not only does the winner have to pay the winning price, but also the fees for each bid, as well as all the other bidders having to pay the fee for each of their bids, so even if you do not win the bid, you would still have to paOn these types of auction, most of the money received as payment is not for the product, but for the bid fees
Then there are open auctions, these are what you are probably referring too.
The theory behind having a No-Reserve offering is that it will draw in more bidders hoping to get a good deal. The more bidders, hopefully the higher the bids will go. It also guarantees a sell. So if someone wants to sell a vehicle for example at auction, they have to first transport the vehicle to the auction, pay the registration fees and then if it doesn't sell, they have to transport the vehicle back to where it came. Sometimes this can be quite costly and if the vehicle doesn't sell, that money is lost. This may influence the sellers decision to go with a no reserve, aat least this way they don't, again hopefully lose the investment of going to auction, but the risk is that there will only be one interested bidder.
Some times people will not bid on an item with a reserve because the possibility of getting a great deal is not there.
Sometimes the seller may lift the reserve during the auction hoping to bring in more bidders who think they can still get the item below the reserve price.
Usually the auction house will charge a different fee for reserve vs. no-reserve items.
I love auctions and have been to many. Don't know if you remember the pictures of my property that I posted on A.B some time ago, but all those statues in my orchard were purchased at auction. You would be amazed at how little I paid for them.
Are you thinking of going to an auction. Maybe you need a 1000 horse power mini van...haha (reference to another of your questions...
Have a wonderful day m'dear
Thank you for such an information-filled reply des. Yes I do remember your beautiful gardens and statues. Years ago there used to be monthly auctions at a local auditorium and I attended them. Jim came with me. They'd have time for you to examine various items before the auction began and we got the paddles and it was really a lot of fun. The thing is we are both such novices when it comes to knowing the price is good or not. You have to know comparables to know if it is a good deal and we didn't so we never bid on anything though I came close a couple of times. If we were neighbors maybe Jim and I could tag along with you and learn. Happy M
onday des! :)
Hello again Rosie
Most times I have gone to an auction it was because I wanted to bid on a specific item. I went in knowing what my limit was and would stop when it was reached.
However, there have been times where I bid on things I saw at the auction that I didn't plan on buying.
Having spent a lifetime buying and sellin things, I know a little about values, especially when it comes to more vintage items. One time there was a storage unit which contained mostly chairs, about 8 and some other misc. items. Most of the stuff was of no value, but I noticed 2 of the chairs. I knew, because of the base's that these chairs were original Herman Miller Eames chairs from the late 50's. There wasn't much interest so I bid. Got it for 200.00 bucks. Sold the 2 chairs for 1,500.00 to a client who was doing a remodel of a Eichler home.
Sometimes there are items where there is no comparable value. If you see a painting that was done by an anonymous artist, there are no other sales of paintings by that artist in which to compare, that painting will only be worth what you are willing to pay for. So if there is no investment value, you are buying simply because you like it, so you have to decide how much you value the item.
Id love to go to an auction with you and Jim, even if you don't buy anything, it is still a fun time...
Have a great day m'dear
From your lips to Heaven's ears. Perhaps one day. I mean we live in the same state for Goodness sakes! It is feasible/doable/hopable! Thank you for a very informative reply. We are fans of Antiques Roadshow. I also like to watch Pawn Stars and American Pickers (I think that's the name) . So much of what they deal with and value I think of as junk! I love the Antiques Roadshow experts. When Jim was still working as a hairstylist one of his clients recommended the show. We got hooked with the first show! We were on our way up to join Jim's sis and brother-in-law to go to the Antiques Roadshow in Reno (Jo, his sister, had gotten tickets for us..they lived in Sun Valley, A Reno suburb ) when we had our terrible accident. Friday, August 13, 2004. The tickets were for Saturday. We never made it. Ya never know what is gonna happen ! Anyway the car was totaled and we should have been totaled to but here we are. Go figger! Thank you for your reply des
! :)
Yes... If it is what is known as an "Absolute" auction !
