NATIONAL AUCTIONEERS ASSOCIATION

Auctions:The Past, Present and

Future

NATIONAL AUCTIONEERS ASSOCIATION

Auctus

“Auction” derives from the Latin word “Auctus” which

means “increasing”.

NATIONAL AUCTIONEERS ASSOCIATION

Babylon 500 B.C.

The First Auctions

• Women were auctioned off as wives

• The descending method of sale was used

• Returns were allowed• Dowries and other offers

were added for less attractive women

• It was considered illegal to allow a daughter to be “sold” outside of the auction method

NATIONAL AUCTIONEERS ASSOCIATION

Rome30 A.D.

• Rome was the first nation to license auctioneers.

• Marcus Aurelius sold family furniture at auction to satisfy debts.

• Roman soldiers sold war plunder at auction.

• The “Magister Auctionarium” drove a spear into the ground to start the auction. Today auctioneers use a gavel to start auction.

Marcus Aurelius, Roman Emperor, 161-180

NATIONAL AUCTIONEERS ASSOCIATIONDidius Julianus

• One of the most significant historical auctions occurred in the year 193 A.D. when the entire Roman Empire was put on the auction block by the Praetorian Guard.

• On March 23 the Praetorian Guard first killed Emperor Pertinax, then offered the empire to the highest bidder.

• Didius Julianus outbid everyone for the price of 6,250 drachmas per guard.

• This initiated a brief civil war and Didius was beheaded two months later when Septimus Severus conquered Rome.

NATIONAL AUCTIONEERS ASSOCIATION

Stockholm Auction House

• Founded in 1674, Stockholms Auktionsverk is the oldest auction auction house still in business.

• Founded by Baron Claes

Rålamb

Baron Claes Rålamb

NATIONAL AUCTIONEERS ASSOCIATION

EnglandIn some parts of England during the

seventeenthand eighteenth centuries auction by candle

wasused for the sale of goods and leaseholds.

The auction began by lighting a candle after which

bids were offered in ascending order until the

candle sputtered out.

The high bid at the time candle extinguished itself

won the auction.

NATIONAL AUCTIONEERS ASSOCIATION

Post French Revolution

At the end of the 18th century, auctionscame to be held in taverns andcoffeehouses to sell art.

Auctions were held daily and catalogswere printed to announce availableitems. Many considered the auction

catalogs art in themselves as they were very

elaborate and detailed.

Sotheby’s Auction House was founded in 1744

Christies Auction House was founded in 1766

A Peep At Christies’ (1796)

NATIONAL AUCTIONEERS ASSOCIATION

Pilgrims1600s

Popular Early American

Auction Items

• Crops• Imports• Livestock• Clapboard• Tools• Slaves• Tobacco• Fur• Farms

NATIONAL AUCTIONEERS ASSOCIATION

America’s first president, George Washington, was an avid auction buyer.

NATIONAL AUCTIONEERS ASSOCIATION

Civil War Era• Colonels auctioned off the spoils of the

war• Only officers of the Colonel rank could

conduct auctions of war plunder• Today, Auctioneers are commonly

referred to as “Colonel”

NATIONAL AUCTIONEERS ASSOCIATION

1900s• Auctions schools start to open in America• The Jones’ National School of Auctioneering and

Oratory is believed to be the first American auction school

Class of 1906, Jones’ National School of Auctioneering and OratoryDavenport, Iowa

NATIONAL AUCTIONEERS ASSOCIATION

NATIONAL AUCTIONEERS ASSOCIATION

NATIONAL AUCTIONEERS ASSOCIATION

Great Depression

During the Great Depressionauctioneers traveled thecountry to liquidate the

estates of farmers whose farms hadfailed because of drought

and bank foreclosures.

NATIONAL AUCTIONEERS ASSOCIATION

1950s• The sale of goods and real estate by the

auction method of marketing was booming• The need for real estate and personal

property to be sold faster than the private market moved auctions to the forefront and the modern auction business was born

• Auctioneers began to be linked to banks, attorneys, accountants, the court system, and government agencies to liquidate property, seized assets and surplus property

NATIONAL AUCTIONEERS ASSOCIATION

Auctions Today• The live auction industry continues to

grow in the United States and if it can be sold, its been sold at auction.

• In 2002, the auction industry sold $195.3 billion in goods and services. In 2008, $268.5 billion was sold at auction!

• The fastest growing sector of the live auction industry is real estate. Residential real estate is the fastest with total gross sales increasing 47.7% between 2003-2008.

• The largest sector is automobile auctions with $83.1 billion sold in 2008.

NATIONAL AUCTIONEERS ASSOCIATION

2008 Gross Sales Revenue

(in billions)• Art, Antiques & Collectibles ($12.4) • Automobiles ($83.1)• Agricultural machinery & equipment

($18.5)• Commercial & industrial machinery

& equipment ($12.7)• Livestock ($17.2)

• Land & agricultural real estate ($26)• Commercial & industrial real estate

($15.5)• Residential real estate ($17.1)• Personal Property ($9.2)• Intellectual Property ($0.2)• Charity ($16.3)

NATIONAL AUCTIONEERS ASSOCIATION

Technology• Today’s auctioneer uses a variety of

media (i.e. print, billboards, Internet) to reach both buyers and sellers

• With the launch of eBay in 1995, auctions have flourished both live and online

• Auctioneers today use the Internet to both market their auctions, as well as host live, streaming video of auctions where bidders can bid from their computers

NATIONAL AUCTIONEERS ASSOCIATION

Entertainment & Auctions

• In addition to advances in technology and popularity of eBay, auctions are also gaining popularity in mainstream media

• Popular television programs like PawnStars, Antique Roadshow, Cash in the Attic, Bargain Hunt, Houses Under the Hammer and Flip That House have both entertained and educated consumers about the many benefits of buying and selling at auction

NATIONAL AUCTIONEERS ASSOCIATION

National Auctioneers Association

• Professional association built by Auctioneers, for Auctioneers over 60 years ago

• Members abide by strict Code of Ethics

• Members come from communities large and small across the country and world

• The NAA and its members are dedicated to professionalism in the auction profession and the promotion of the auction method of marketing

NATIONAL AUCTIONEERS ASSOCIATION

Find an NAA Auctioneer or Auction

To find an auctioneer or auction in your area

Visit auctioneers.org

To find upcoming real estate auctionsVisit auctionmls.com

NATIONAL AUCTIONEERS ASSOCIATION

SOLD!