Sold! Happy National Auctioneers Week

Fewer things are more universally pleasing than hearing the slap of a gavel and hearing the word ”Sold!” echo through a crowded hall.

Auctioneering is one of the oldest forms of business known to man. Selling goods in a public forum, to the highest bidder, is an ancient method of trading goods and services, and has a history that spans millennia and continents.

Auctions trace their origins back to 500 B.C. in Babylon, where they served as the conduit for trading various commodities, including brides. In Babylonian culture, annual auctions were held to showcase women based on their beauty, with the highest bidder securing the right to marry. This practice extended to the Romans, who auctioned slaves and property to settle debts, continuing the tradition through the centuries.

Auctioneering in America: From Pilgrims to Modern Practices

Auctions reached America aboard the Mayflower, where the Pilgrims utilized auctions to convert property into cash, trading everything from crops, livestock and unfortunately slaves as well. During the Civil War era, auctioneers earned the colloquial nickname “Colonel,” for representing the conquering officers who looked to turn war spoils into profit.

World War II helped popularize auctions even further with the need of selling off property quickly and privately, morphing auctioneers into more of a business role.

What Auctioneers Offer

Auctions are actually the oldest and most straightforward method of selling assets via competitive bidding, providing a pure form of price discovery.

While legend has it that a good auctioneer just needs to talk fast — they’re experts in their fields. From timeless works of art, exotic autos, real estate and antiques all the way to livestock or machinery.

Auctioneers are also experts in marketing and play a crucial role in creating awareness and encouraging participation, which ultimately benefits sellers by maximizing exposure for their assets. The competitive bidding process of auctions reflects the willingness of buyers to pay, leading to organic and real-time price discovery that benefits buyers and sellers, bridging the gap between these parties, facilitating transactions that might not occur through traditional channels.

Complying with relevant laws, regulations and ethical standards are also key roles of an auctioneer. In addition to all tasks just mentioned, auctioneers also manage documentation, payment procedures and transfer of ownership, providing a secure and legally binding environment for transactions.

The Rise of Online Auctions

Like with everything else in the world, auctions were changed forever with the advent of the Internet. Jerry Kaplan started the first online auction in May 1995, when he opened Onsale.com, in Mountain View, Calif., selling a motley crew of items, including $5 "antique vacuum tubes,” to a piece of original artwork created by an "artificially intelligent" computer.

"Creating a sense of community is a form of entertainment you can use to sell merchandise," he told the New York Times in 1995. "We want to be to the Internet what QVC is to television."

There's no fast-talking auctioneer pounding a gavel in cyberspace — all bids and notices are handled automatically.

Online auctions have revolutionized the industry, offering convenience and accessibility to local markets to a global audience. Platforms like eBay, Facebook and Amazon have absolutely transformed auctions into a mainstream activity, with everything from everyday items to rare collectibles available for bidding.

Auctions provide a set time and place for asset sales, allowing sellers to convert assets into cash quickly and efficiently.

The organic, competitive bidding process in auctions ensures assets are sold at the best possible prices, providing an actual true-market value determined by buyers' willingness to pay. Auctions are transparent, and people know all too well that it's not what an asset is “worth” that matters, it’s what someone else will pay for it that matters.

Currently, there are between 25,000 and 30,000 practicing auctioneers in the U.S., according to Auctionzip. Auctioneers are responsible for finding a price for the priceless in good, bad or ugly market conditions. From champion studs, to fine art and from prized heifers, real estate and even baseball cards, if you want it sold, they’re who you go to.

Auctions are the purest form of price discovery, where the marketplace determines the value of assets through competitive bidding. This ensures fair pricing based on actual demand and willingness to pay.

In essence, auctioneers play a crucial role in facilitating efficient and transparent transactions, driving successful sales across different asset categories and providing valuable services to clients in need of effective marketing and sales solutions.

Notable Auctions and Interesting Facts

The first item sold on eBay was a broken laser pointer, which was sold to Mark Fraser, in 1995, for $14.83. The gavel used by auctioneers to announce a winning bid was once a spear, adding a dramatic flair to proceedings. In the 1700s, auctions were timed by candles, with bidding continuing until the candle burned out, creating suspense and urgency.

After the murder of Emperor Pertinax by his own guard division, the title of emperor (and essentially the whole empire) was sold off to Didius Julianus, who ruled for just 67 days before being murdered. In 2006, Australian comedian Isaac Butterfield put up New Zealand on eBay for 0.01 Australian dollars and reached $3,000 before it was shut down by eBay. A 10-year-old girl sold a grilled cheese sandwich with the face of the Virgin Mary for $28,000 and someone even sold the meaning of life for $3.26.

Modern auctioneers play a pivotal role in facilitating efficient market functioning, aiding in price discovery, liquidating assets, mitigating risks by providing a legal framework and providing access to markets.

Despite challenges and market fluctuations, auctions remain a reliable and proven method for buying and selling assets, online or in person.