| The economic activities of men living in an | | | | most common type of auction in use these days. |
| organized society are concerned with the | | | | Auction is most commonly used to sell antiques, |
| production, distribution, exchange and consumption | | | | artworks, paintings, real estate, etc. |
| of various goods and services. Buying and selling is | | | | Presently with development of technology buying |
| an important part of an economy. One form of | | | | and selling can be easily done on the internet if |
| such buying and selling is AUCTION and the | | | | the participant cannot attend the auction in |
| institution which offers auction is called Auction | | | | person. Moreover, there are various auction sites |
| House. | | | | available on the internet where we can participate |
| An auction can be described as a process of | | | | sitting at home. |
| buying and selling of various items and sometimes | | | | Real estate is a kind of business which is booming |
| services by placing them for bid and selling them | | | | these days. Everybody is interested in investing in |
| off to the highest bidder. The word "auction" is | | | | real estate. Auction of real estate is of great |
| said to be derived from the Latin word augere | | | | importance nowadays. The purchasing power of |
| which means to "increase" or "augment". In an | | | | people has risen to a large extent. Now people |
| auction the auctioneer sets a low price of the | | | | love to spend money for luxury. People buy big |
| product and the bidding starts from that price. | | | | houses, villas, bungalows, etc for luxury as well as |
| People participating in the auction bid against each | | | | maintaining status. These needs can be satisfied |
| other, each bids a higher price than the previous | | | | to a large extent through auction and they can |
| one. The participants can call bid themselves or | | | | buy houses according to their choices. |
| there can be a proxy call on their behalf. The | | | | During the recession, a lot of homes were |
| auction comes to an end when no one is willing to | | | | foreclosed. Such houses are often sold through |
| bid further and the product is sold to the | | | | auctions – creditors sell the properties on |
| participant who has made the highest bid. The | | | | auction to retrieve their fund. People who wish to |
| seller has to pay a commission to the auctioneer | | | | buy new home or are interested in flipping |
| or the auction house which is based on the | | | | purchase homes in auction often at much lower |
| percentage of the final selling price. This is the | | | | rates than the market. |