b'By Jim and Bobbi Jeen Olson,WesternTradingPost.comA uctions have been around since Roman times. They are a great way to move product in a timely manner and a way to find true market discovery. For most of those 2000 years, live auctions were pretty much the main option. However, since the 1990s, internet timed auctions have been around. Nowadays, many folks get the two confused. These two distinctly different formats are often intertwined, blended, and thought of in terms of having one set of standards. However, there are differences you need to know.TIMED AUCTIONS typically run online and happen between the bidder(s) and the computer. As far as an event goes, there is little or no production involved. Timed auctions happen with no auctioneer, as mentioned, computer software handles the bidding. The lots are open for bidding for a pre-determined period of time, usually from a few days up to a couple of weeks. Maximum bids left on a specific lot in a timed auction are prioritized by the computer system (for example, if two identical bids are left by different bidders, the bid left first will be prioritized and the second bid will be automatically rejected). At timed auctions, the closing of a lot is sometimes automatically extended if a bid is left in the last couple of minutes. This allows other bidders a chance to raise their bids when outbid at the last minute. Timed auctions generally have a reserve amount factoreda live auction format (this also varies from place to place). A key difference into the system so that if a certain floor is not reached for the price of anbetween a live and timed auction format is that in a live auction until the item, it is passed out (not sold). From a contract standpoint, at any pointauctioneer acknowledges a bid from a potential buyer, the bid has not been during the period in which lots are open for bidding, if a buyer leaves aaccepted as the current winning bid. It is merely an offer at that point and bid online which is accepted as the current high bid (subject to possiblebecomes an enforceable contract once acknowledged by the auctioneer. The reserves or other various conditions), a contract has been created betweenauctioneer is the conductor and has the final say.the bidder and auction house (seller) whereby the bidder will purchase the lot for the specified amount (plus applicable fees) and this contract isTerms and conditions vary from enforceable until there is a higher bid accepted. one auction house to another, so it is important to know the specifics for each auction you participate in. Some timed auctions have hard closes (meaning the lot closes at a certain time no matter what) while others have extensions built-in (ie: if a bid is left in the last minute, the closing for that lot is automatically extended for another minute). Some live auctions are held with an online component as well. This can get tricky when dealing with absentee bids and so-called tie bids. Some auction houses have it built right into their terms and conditions that any ties will go to the floor bidder, others give preference to a certain platform or the earliest absentee bidder. While others give it to the person whose turn it was in the bidding. Some auctions will ship the items for you, others will not (they have you call a third party shipper). Most auctions today have buyers premiums, but not all. Those premiums can vary widely. It is important to know how each company conducts its particular auction so your best bidding practices/strategies can be implemented. Remember, if in doubt, ask questions first.LIVE AUCTIONS happen with a crowd (in person, online, by phone, orAn important thing to keep otherwise) and are usually an event, often a big production. An auctioneerin mind is auctions can and conducts the live auction and is responsible for acknowledging bids andshould be fun. They are a great accepting them (or in some cases rejecting them). Although there mayway to buy and sell items at be pre-bidding offered online, or by absentee bid, a lot in a live auctionfair market value in a timely format is opened for bidding when the auctioneer announces that he is nowmanner. Auctioneers/auction going to sell that certain lot and closes when the auctioneer says SOLD!houses are your friends in the (This usually takes about 30 seconds to 1 minute). In a live auction format,process, not adversaries. Treat absentee bids may be left beforehand, but once the auction starts, absenteethem as such and know the bids are typically handled the same as if the person who left the bid wasrules (terms and conditions) standing there in the room bidding (this varies from one auction house toand you will get along much another). Many live auctions have reserves set in advance by sellers, butbetter at the auction! you are more likely to find lower reserves or absolute sales happening in 38 July 2020'