Buy or sell? Participate in the first art auction

Auctions offer a very special setting. You are a good way to buy a special piece. Regardless of whether it is used electronics, an antique furniture or art .

At the same time, they are an excellent way for sellers to sell their goods profitably. In this article we provide tips and hints for everyone who wants to take part in an auction for the first time.

Fascination auction

Television programs such as art and stewards or bares for Rares have made the topics of works of art and antiques accessible to the general public. At the same time, online auction houses have been extremely popular with bargain hunters for many years.

Regardless of whether you want to refer or buy something: If you have already liked online auctions , you will probably appreciate the very special atmosphere in a real auction house. However, there are some points that have to be considered selling art

How do you find auction dates?

There are various ways to find out more about auction appointments . One of the simplest and most widespread is the search on the Internet. There are many auction houses that publish their appointments. There are also websites that summarize auction houses

You also have the opportunity to find out more directly from auction houses. This can be done either by phone or by email. Local newspapers also often provide information about upcoming appointments. If you want to go deeper into the matter, you can fall back on specialized auction magazines or subscribe to auction catalogs.

Which types of auctions are there?

Auctions do not always run according to the pattern that they may be used to from television. The most prominent types of auctions include:

English auction

The English auction stands as the most widespread form of auction and is very popular in various areas, from art to antiques to real estate. With this type of auction, it is characteristic that the prices will increase steadily during the auction process. Bidders emit their commandments, which are usually public, and each participant has the opportunity to increase the price by calling up a higher bid.

The English auction also offers an interesting dynamic because it brings clear advantages for both buyers and sellers. Sellers can benefit from the competitive situation, since the commandments can rise quickly and therefore a higher sales price is often achieved than with other forms of auction. Thanks to the transparent bidding, buyers have the option of better assessing the value of an object and actively offering their desired object.

Dutch auction

This means a kind of auction at which the price drops during the auction and the first bidder to accept the price.

This form of auction is often used for charity events or real estate sales.

Sealed-Bid auction: an overview

A SEALED-BID auction, also known as the hidden or sealed auction, is a form of auction in which the commandments of the participants are given at the same time and anonymously. This type of auction stands out from other forms of auction in which bids are visible in real time and have the opportunity to react to others.

Functionality

1. Submission of the commandments: Each bidder prepares his bid, without knowledge of the bids of the other participants. This means that every bidder releases their maximum willingness to pay, as there is no way to react to competing commandments in real time.

2. Closed and anonymous: the bids are sealed and anonymously submitted, typically in an envelope or via a safe electronic system. As a result, the identity of the bidders and the amount of the respective commandments until the bids are opened remains secret.

3. Opening of the commandments: After the offer period has expired, all commandments are opened and checked at the same time. This transparency ensures that the auction process remains fair and incorruptible.

4. Supplement to the highest bid: the participant with the highest bid wins the auction and is awarded the contract. In some cases, the bids are binding and the winner is obliged to pay the amount offered.

Vickrey auction

With this special form of the Sealed Bid auction, in which the highest bidder pays the second highest of the aforementioned prices. It is named after the economist William Vickrey, who received the Nobel Memorial Prize for Economics in 1996.

Japanese auction

In principle, the Japanese is a reverse Dutch auction. The auctioneer calls out an ever higher price. The bidders must express or get out of existing interest. This happens until only one is left. The process is very quick and is typically used on Japanese fish markets.

American auction

The American auction is often used at benefit events. With this type of auction, the highest bidder is awarded the contract, but every co -bidder must pay the difference between his and the previous bid. As a result, very high amounts come together for a good cause.

What are the costs of an auction?

Both the preliminary tour and the auction itself are usually publicly accessible and accessible to everyone free of charge. Seller usually have to pay a defined commission to the auction house .

In addition, auction houses raise a fee of 10 to 25 percent to the sales price that is to be paid by the buyer - the so -called premium, which is also subject to VAT. If a postal is deviated from this regulation, this is usually identified before the auction.

Conclusion: Participation in an auction with rare and tax.de

Auctions are fascinating events that captivate many people. However, it can also cost overcoming to enter well -known auction house

Our helpful tips and tricks should take part of this fear of thresholds.