Understanding Auction Action

Unraveling the intricacies of an auction is like learning about opera: At first, it is a bewildering production built around a person at center stage who makes a lot of interesting noises, some of which are completely incomprehensible. But once you grasp the plot, and understand the roles of various players, it all becomes magically clear; superb drama or comedy.

Plus, you get to buy stuff.

Q. What kinds of things are sold at auctions? A. Virtually everything that can be sold is auctioned: a bargain bungalow in the 'burbs, rare tropical fish, a 1949 Ford coupe, garnet earrings in the shape of cherries, a pen full of hogs, a truckload of new riding lawn mowers or a Limited Edition .357 Colt Python handgun.

Q. Why is auctioning used as means of sale? A. Sometimes it's a death in the family that prompts an estate auction. It may be a bankruptcy, a retirement sale, government surplus, goods seized in drug-law-enforcement operations or just the most efficient way to sell a large amount of merchandise in an open-market setting. Those aforementioned hogs - and the tobacco that went into the cigarette you're sneaking while reading this article in the bathroom - have been successfully sold by auction for generations.

Q. Why do some auctioneers talk so fast? A. Two reasons: tradition and efficiency. The pace of many auctions here is slower compared with other places, such as the Southern tobacco states where an auctioneer's chant is regarded as an art form. But the locals manage to keep things going at a pretty good clip.

Whether they're selling heavy equipment or the late Mrs. So-and-so's Hummel figurine collection, auctioneers are usually paid a percentage of the gross sales. "That's the incentive in this business," says Seattle's Pacific Galleries partner Steve Morris, who might sell 50 antiques from a high-end estate in an hour. Some types of auctions, such as auto sales, move even faster. Local auctioneer Joe Parypa moves anywhere from 70 to 170 vehicles in 60 minutes.

Selling faster means earning faster. Plus, auction-goers will get bored and leave if things drag too much.

Q. What if I scratch my head and the auctioneer thinks it's a bid? A. You can spot an uneasy auction newcomer from a mile away. He's the one standing as still and blank-faced as a snowman in the Yukon. He's afraid to so much as twitch, lest he end up owning that pink plaster statue of a leering Cupid. And, truth be told, some auctioneers do pounce on the slightest sign of a bid in order to keep the price rising. But they aren't in the business of tricking you into owning an antique dining-room set just because you were waving away a fly. It's always OK to shake your head, or even speak up if you've been misunderstood.

Q. How do I know I'm not getting cheated? A. First rule of smart auction-buying: Go to the preview. Virtually all auctions have a viewing period before the actual sale. There's ample time to check out the goods and research the value before it's time to bid. Since most auction merchandise is sold "as is, where is," buying without a careful examination ahead of time is extremely foolish.

A slick auctioneer can pull bids out of thin air without a novice realizing she is bidding against a ghost. Just like a real estate agent can hint at "another interested party" and a car salesperson can claim that the sales manager won't go for such a low price. It also is within the auctioneer's right to have an absentee bid and not announce it, but simply count it in like a live bid as she moves along. The key, in all those cases, is knowing the value, and having a price in mind before the dickering begins.

"Do your homework and bring a tape measure to the preview," says Jeff Johnstonbaugh, a longtime auctioneer for Jesse Jones Auctioneers.

Second rule: Be wary of a deal that wouldn't wash in some other setting. Would you buy a car without a clear title from a regular dealer?

Third rule: Know the terms of sale. A "reserve" auction means the seller reserves the right to change his mind, and decide not to sell you that parcel of land for your top bid of $25,000 after all. If a "buyer's premium" of 10 percent is in effect, that silver tray you got for a bid of $40 will really cost you $44 - plus sales tax.

Terms of an auction should be spelled out in a sale program and explained at the start by the auctioneer. If you're unclear - ask before you bid.

Fourth rule: When possible, watch an auctioneer in action before you become a bidder yourself. Does she communicate well with the bidders? Is the merchandise accurately described in the catalog and in verbal descriptions?

If you don't understand her fast-moving chant at first, listen until you become accustomed to the bid increments being used.

Much of an auction company's success is built on repeat business and word-of-mouth advertising, so reputable companies work hard to keep bidders coming back. That doesn't mean an auctioneer won't let you pay $2,000 for a china hutch she's appraised at $900. She started the bidding at $500, remember?

Q. How do I find out about auctions and auctioneers? A. Most auctions are advertised in a separate category in local newspaper classified sections. And almost all will add your name to a mailing list at your request or when you register at a sale.

For more information, contact the Washington State Auctioneers Association, P.O. Box 3693, Pasco, WA 99302, (509) 547-5538. Or the National Auctioneers Association, 8880 Ballentine, Overland, KS 66214, (913) 541-8084.