Types of Auctions

Like any marketing method, auctions come in a variety of types, forms, and kinds. Every year, there are thousands of auctions conducted. Below are ten of the most common types of auctions you might experience.

1. Livestock

Probably the most famous type, livestock auctions are known for their speed, consistency, and determining the commodity’s true value. From breeding stock to commercial sale barns, livestock auctions are conducted year-round across the nation. Auctioneers typically are faster, knowledgeable about the phenotype and genotype of the animal, and are known for being some of the best auctioneers in the business.

2. Auto

As if not more than livestock auctions, auto auctions are held monthly or annually for car dealers to conduct business among other entities. Auctioneers are as if not faster than livestock auctioneers and sale cars at a rapid pace. Many of the great auctioneers now started as a bid spotter for auto auctions.

3. Real Estate

In a market that has become extremely popular in certain areas, real estate auctions are about to follow suit. Typically, a seller listed their property for an asking price and potential buyers would submit a bid. After negotiations and various offers, the property would sell typically for less than the asking price. Now, buyers are submitting bids for over the asking price, thus causing the true value to never be reached. Therefore, real estate auctions are on the verge back to ensure sellers are receiving the maximum value. Dealing with hundreds of thousands of dollars (even millions!!!), auctioneers are slow, easy to understand, and will make sure all bidders have a fair share to think about and submit a bid.

4. Benefit

Another common auction, benefits are a great way to bring the community together, entertain, and generate funds for great causes. From student organizations to nationally recognized non-profits, benefits are typically held in the spring or fall on an annual basis. Auctioneers typically begin their careers at benefits due to the low-stress environment. Auctions are a little longer and auctioneers chant a little slower but with a rhythmic tone to ensure the bidders are excited and engaged in the bidding process.

5. Farm/Equipment

Another one of the most common forms, farm and equipment auctions are known for various reasons. First, these events bring together producers, business owners, and equipment enthusiasts from the community, county, state, and even country. These auctions usually are great ways to determine the value trends for different items. Lastly, the money the auction generates for the community through hotel rooms, restaurants, and other entities significantly boosts a community’s economy.

6. Estate

Though typically due to a difficulty (divorce, death, foreclosure), estate sales are a great way to liquidate items when necessary. During this sentimental, emotional time, an auction is an easy, efficient, and economical method to distribute property in a fair and honest manner. Auctions are usually ran at a normal rate and are known for having some good deals on items that most bidders do not have an interest in.

7. Business Liquidation

Similar to estate auctions, business liquidation is never a good event. However, entities and the public have a great opportunity to come out and bid on items to help a struggling business owner. These sales are usually highly efficient and fast while still being slower regarding the bidding process. While a lot of liquidation sales have trended to online formats, there are still several live auctions conducted annually.

8. Government

One auction type many do not think about is government-sponsored auctions. Due to seizures, operations, and other procedures, the government possesses equipment and items that it has no use for and needs to sell back to the public. Therefore, these items go through an auction for individuals to purchase hopefully at a cheaper price than retail. Like liquidation auctions, a lot of the government auctions have migrated to an online format; however, there are still some simulcast and live auctions conducted in the nation.

9. Antique

Possibly one of the strongest live auctions are antique auctions. As known, paintings, décor, and other vintage items can experience wide fluctuations in value due to various factors. Therefore, auctions are held to determine the true value of an item at the given point in time. Auctions are usually large events with a lot of socialization. Auctioneers are typically slow in their chant and are detailed with the items being sold.

10. Storage

Another rare auction although more known now due to the reality tv show. Storage auctions are a common event held frequently when storage companies have items or units full of a renter’s property that they left. While typically units do not contain rare, expensive, items, they do contain things that could be profitable for a buyer. Flipping units, while not as risky as houses, is an interesting side hustle that can potentially pay off.

Regardless of the job or profession you have, it is highly likely an auction of some kind will impact you. We encourage everyone to attend different types of auctions when possible and observe the differences. If you have never been to an auction before, it is highly encouraged to attend one and even throw your hand up a time or two!