Selling : Methods of Selling : Auction History

AUCTION HISTORY

Auctio - Latin Aucti, Auctin from Auctus, past participle of Augre - To Increase

A public sale in which property or items of merchandise are sold to the highest bidder.

The Auction Method in various forms has been used since ancient times to achieve the highest possible price in a transparent open bidding system where buyers compete against each other in an open forum.

It is used for fine art, property, tobacco, crops, and cattle and in the flower market in Holland. There, the 'Dutch Auction' was created centuries ago for the sale of flowers. In a Dutch Auction the auctioneer starts high (not low) and comes down in 'falls' until someone makes a bid. That person, based on one bid, is the successful buyer (provided of course it is at or above the seller's reserve price).

Victoria, and particularly Melbourne, has long been regarded in Australia and even worldwide as the home of the on site residential auction. This dates from the early days of, the then, Colony of Victoria where the auction method was used by the colonial administration for the sale of crown land.

The auction method is accepted as one of the most effective ways of marketing property. Not only is it used by the general public it is recognised by many government agencies, banks, mortgagees executors and to resolve various disputes. Like everything there can be positives and negatives, benefits and disadvantages of an auction.