Traditional Auction vs. Online Auction

At Fink Auction and Appraisal, we offer both traditional and online auctions so that we can best serve you and your family! You’ve probably heard of both types but might not be well-versed in how they run. Let’s dive in and see what each entails.

What is a Traditional Auction?

Traditional auctions are live auctions. There is a specified date that is scheduled for people to show up and bid in person. Everyone present gets a fair shot at viewing the items before bidding on the item(s) of their choice. When the auction officially starts, the auctioneer stands up in front of the audience and explains each item that is up for bidding. He then allows the audience to formally make their bids on one item or on one group of items at a time.

Live auctions can be conducted in varying ways, but in the U.S., you would probably be most familiar with the English Auction. The English Auction is an open-outcry, ascending-price auction. This means that every time someone bids on an item, the price is raised to that current bid. The audience can continue bidding, thus continuing to raise the price, until no one wishes to bid any higher. An item will be up for auction until no more bids are raised. The item will then be awarded to the highest bidder, who will purchase that item for the amount that they had offered. The same concept and method apply if a house is being auctioned off. At Fink Auction and Appraisal, we can host live auctions for both personal property and real estate!

What is an Online Auction?

An online auction is what it sounds like—an auction conducted online. As society moves increasingly online, these types of auctions are becoming more popular. They are easier to host and more efficient. We conduct our online auctions on our website, bidfink.com. Our online auctions run for a specific period of time (e.g., 2 weeks, 1 month, etc.) and then have a soft close at a specified time on the closing date.

Those interested in bidding must register to bid and then can bid at their leisure. Everything updates in real time, so each bidder can see the current prices. Unlike traditional auctions, you can set a maximum bid and then continue with your day. You are not stuck in one place until the auction concludes. There is no need to constantly watch what others are bidding. If someone outbids you, the system will continue to bid on your behalf up until your maximum bid. If you don’t want to set this option, you will still receive an email or text alerting you when someone outbids you. This gives you the opportunity to place another bid before closing.

Pros and Cons of Both

Traditional and online auctions each have their own set of pros and cons that are worth considering. Traditional auctions are limited to those who can actually show up for the appointed date, while online auctions are much more accessible, letting people bid anytime, anywhere.

While online auctions are more efficient, they lack the emotional connection that helps drive bids higher in a traditional auction. People are oftentimes driven by their emotions when they are considering buying something. A house on a picturesque property or an excited audience in a large room can easily encourage higher bids than individuals looking at pictures on a screen.

Online auctions allow someone to look carefully at everything being offered and give them days, sometimes weeks, to consider buying something. We send out reminders to help keep it at the front of their mind instead of being forgotten about. Traditional auctions allow an up-close look at items. Though, it may be hard to look at everything if there is a large crowd. But, unlike the online auction, they won’t have so much time to consider that they might forget or lose their motivation to buy what they were wanting.

Wrap-Up

Beyond the basic differences of traditional and online auctions, there are even slight variations on how these two types of auctions can be conducted. Auctions are not a one-size-fits-all type of sale. That’s why options and variations exist. Our clients deserve the best auction for them. When we meet with a potential client, we listen well and look at the whole picture. After discussing the needs and wants of our client, we present all possible options and are honest regarding the pros and cons of each as it pertains to the client’s individual situation.

Our goal is for you to make an informed and confident decision. It’s not about what’s best for our business; it’s about what’s best for you and your family.

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