Online Auction House And Real Estate Auction

The economic activities of men living in an organized society are concerned with the production

, distribution, exchange and consumption of various goods and services. Buying and selling is an important part of an economy. One form of such buying and selling is AUCTION and the institution which offers auction is called Auction House.

An auction can be described as a process of buying and selling of various items and sometimes services by placing them for bid and selling them off to the highest bidder. The word auction is said to be derived from the Latin word augere which means to increase or augment. In an auction the auctioneer sets a low price of the product and the bidding starts from that price.

People participating in the auction bid against each other, each bids a higher price than the previous one. The participants can call bid themselves or there can be a proxy call on their behalf. The auction comes to an end when no one is willing to bid further and the product is sold to the participant who has made the highest bid. The seller has to pay a commission to the auctioneer or the auction house which is based on the percentage of the final selling price. This is the most common type of auction in use these days. Auction is most commonly used to sell antiques, artworks, paintings, real estate, etc.

Presently with development of technology buying and selling can be easily done on the internet if the participant cannot attend the auction in person. Moreover, there are various auction sites available on the internet where we can participate sitting at home.

Real estate is a kind of business which is booming these days. Everybody is interested in investing in real estate. Auction of real estate is of great importance nowadays. The purchasing power of people has risen to a large extent. Now people love to spend money for luxury. People buy big houses, villas, bungalows, etc for luxury as well as maintaining status. These needs can be satisfied to a large extent through auction and they can buy houses according to their choices.

During the recession, a lot of homes were foreclosed. Such houses are often sold through auctions creditors sell the properties on auction to retrieve their fund. People who wish to buy new home or are interested in flipping purchase homes in auction often at much lower rates than the market.

by: Gregg

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