An auction is a method of purchasing and selling goods and services by putting them up for bid, allowing people to place bids, and then selling to the one who makes the highest bid on the day of the auction. The bidders compete against one another, with each successive bid being greater than the one before it in order to win the auction.
Prior to the beginning of an auction, prospective bidders are usually given the opportunity to inspect the items up for auction and assess their condition before bidding. Once potential buyers have finished inspecting all of the items and have decided that they want to participate in the auction, they must enrol with the auction house.
As the auction commences, the auctioneer provides a summary of the item for sale and launches the bidding with the price that he considers to be a reasonable opening price. Instead, the seller may have established a lowest bid price that they are willing to accept, and the bids will begin at that price.
Once an item has been placed on the auction block, the auctioneer will begin bidding at a low price in order to attract a large amount of bidders. After each new, higher bid, the price of the item increases until there are no more bidders ready to offer anything higher than that bid. At this point, the item is awarded to whoever placed the highest bid. The auction reaches its conclusion when the vendor has accepted the highest bid and the buyer has paid for the item. After paying the bid price, the highest bidder immediately becomes the legal owner of the item.