Going Going Gone Trivia Quiz

Answer: As is

Let's face it! Most items that are sold at auction have been used - some for quite a long while! It is the responsibility of the buyer to inspect the item he wants to purchase and make sure that it is in a condition that is acceptable to him with all or any existing flaws. Auctioneers include the term "as is" to not only protect themselves, but to also protect the seller.

This is an all-inclusive statement which means that there is no warranty and the seller is not going to make any alterations to the item once it is sold. Most auction companies, Sotheby's for example, have a statement regarding the "as is" condition on their "Terms and Conditions of Use", which one must sign before participating; their statement is classified as "Disclaimer of Warranties".

Answer: Bid

Bidding on an item at an auction is something that can be difficult for some beginners. It requires close attention to auction details and etiquette. First the bidder must register with the auction company, after which he receives a number. Once the auction beings, it is necessary to become attuned with the auctioneer's bid calling. Each auctioneer has his own bid calling, unique chant, and some are very difficult to understand. Usually the auctioneer will set the price for an opening bid; after that, it's up to the bidders! If a bidder moves in a certain way or raises up his number, the bid is his until he is outbid. Typically when there is a new bid, the bid assistant to the auctioneer, also called a ringman, will yell something like "Yep!", so it is necessary to listen for that - otherwise, the next bid you make could be against yourself!

Answer: Commission

Every auctioneer is highly motivated to coax as much money as possible from the bidders. Why? He works for a commission, which is worked out in the terms of the agreement between the auctioneer and the seller before the auction begins. According to Mike Brandly's blog, there are other ways an auctioneer can earn his commission; it seems, however, that agreeing on a percentage of the final price is most beneficial to both parties.

Some auction houses also charge a buyer's premium (so buyers be informed!) which is a fee over the hammer price.

They might prefer to add the extra charge because it allows the auctioneer to make more money or not to charge extra for commission. In some U.S. states sales tax is also charged, so that good deal might become less affordable really fast!

Answer: Estate

An estate sale is not simply a garage or yard sale. It typically is when a family will liquidate all belongings due to certain circumstances, such as death, divorce, or downsizing. While some estate sales have tagged prices, others, specifically estate auctions, have an auction format. According to "Angie's List", it is important for those wishing to sell their items to choose the right auction company - one with experience in selling the types of goods that will be for sale.

For example, it would be important for the artwork of a famous artist to be sold in an appropriate location - like New York City or London - rather than by a small town auction house.

In addition, it is important for sellers to ask for references and sign an agreement as to services that will be provided and fees that will be assessed.

A potential buyer at an estate sale also needs to know the terms of sale and claim his item after placing the winning bid. Many times people complain that items they won disappeared after bidding continued in a different area of the estate sale, and that sometimes they were charged unexpected fees.

Answer: Hammer Price

An interesting tidbit - Early auctioneers in some regions were known as Knights of the Hammer - hence the term "hammer price"! Today it is more likely that the auctioneer will use a gavel. The last bidder, who becomes the buyer, is expected to pay the price stated when the gavel falls. Usually what is heard when there are no more bids for an item is something like, "Sold for $250 to Buyer 17"! According to the agreement between the seller and auctioneer, the auctioneer has the right to make the decision as to what the selling price might be. With some items it might be prudent to set a reserve price, which is not typically known to bidders. If the bidding price goes higher than the reserve, the auctioneer can sell the item; if it is lower than the reserve price, the seller must decide to either accept or reject the offer. If the seller isn't in attendance, some auction houses will include items that didn't meet the reserve price in the next appropriate auction.

Answer: Lot

At an auction the term "lot" may be used to describe an individual item or a group of items. Sometimes the group of items are related. However, sometimes the groups are arranged by the auctioneer or his assistant. If there are many items to sell, grouping them into lots helps the auction move along a bit faster. How many times have you been at an auction and noticed people making their own lots, taking an item from the table and putting it into an existing box or just conveniently putting a book they want in a lot with many books? Or - how many times have you noticed that a box seemingly full of junk purchased as a lot contains a treasure? It's all just part of the fun, but this is a case where it is important to listen carefully. If the auctioneer has said, "times the money", that means you are bidding on an "each" price for those books in the lot.

It may not prove to be such a great deal after all! On the other hand, if the auctioneer says "one money" that means all of the books are going for just one price.

At many auctions the auctioneer and his crew are present as customers begin to arrive; he can also make the decision to put lots together if he notices that people are moving items from lot to lot.

Answer: Outbid

Maybe it is time to discuss the fact that there are plenty of online auction sites, such as eBay, that buyers can enjoy. In fact, it is possible these days to bid online on many different types of items - even real estate! While some say that being an aggressive bidder is a good strategy, it is really a good idea to have a price that you are willing to pay in mind for a certain item before you begin bidding, whether at a live auction or online. Getting caught in a bidding frenzy can sometimes mean that the buyer pays more than the item is worth or they can afford.

Answer: Grading

Used mostly for specialized auctions, the grading system can help a potential buyer better understand the condition of the item they wish to purchase. Automobile auctions are very popular these days, and the grading system is used to help determine condition of the vehicles.

The "National Association of Motor Auctions", for example, has published a 5 grade system that enables both buyers and sellers to establish a potential buying price. Likewise, a grading system is used for coins and other collectibles.

Some auction houses, such as "Heritage Auctions" in the United States, posts grading tutorials for items such as coins, sports cards, and even comic books.

Answer: Clerk

Did you know that there are schools that train auctioneers and the people who help them? In Billings, Montana, interested students may attend the "Western College of Auctioneering". Regulations concerning training may vary from state to state, however.

In Billings the entry level class is 92 hours long and takes about 10 days to complete. The auctioneer is the person who makes an auction happen, but he can't be successful without the assistance of several people who work closely with him. The ringman, or bid caller, is described as a one-on-one salesperson.

A cataloguer, or researcher, will create sale bills that describe items that are for sale at an auction, and a technician is responsible for moving, storing, and packing items that are sold.

The auction clerk records which items are sold to which bidder for which price. In my area this is sometimes done by using a computer program to record transactions and sometimes it is done by hand on a bidding sheet in a book. In some cases in the US the clerk also collects money from buyers or holds other responsibilities.

Answer: Peter Funk

In 1834 American Asa Greene published a book called "The Perils of Pearl Street: Including a Taste of the Dangers of Wall Street". In the book, Peter Funk was a swindler who worked to raise prices at auctions without having any intent to buy the items.

This action, of course, is illegal in the auction business. Buyers should also be aware of what is called the "chandelier bid" or "rafter bid". If the auctioneer feels like he is not getting good bids on a particular item, he points to the ceiling, which represents an imaginary bidder, and "receives" a fake bid to drive the price of the item up a bit.