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Yacht auctions are events in which a yacht, or recreational boat, is sold to the person who submits the highest bid The process by which the yacht auctions are held can vary: the most traditional process involves all potential buyers assembling in one place to view the yachts and then place bids on them. An auctioneer controls the sale of the boat by monitoring who is bidding and how much. There is usually a set time limit on bidding, and at the end of the time limit, the high bidder wins the boat.
Newer forms of yacht auctions have become prevalent over the years as well. Internet auctions have become a convenient way to track down a yacht and buy it at auction without ever leaving home. This method can be difficult, however, as the buyer may be responsible for significant shipping fees to get the yacht to his or her location. One way to avoid such pitfalls during Internet yacht auctions is to limit one's search to a specific region that will allow the buyer to receive the yacht without significant transportation fees. For some, the fees do not factor into the decision as to whether to bid or not, so online auctions allow potential buyers to seek out a wider variety of yacht options.
One of the pitfalls of yacht auctions is true pricing. The potential buyer will need to have a solid understanding of the real market value of a particular boat before submitting a bid; bidding wars often erupt, with two or more bidders raising the price of the boat until it exceeds the true value of the vessel. The high bidder will therefore end up paying more for the boat than it is worth, or more than it can be purchased for on the common market. An educated bidder will have an idea of the true cost and will be able to stop bidding before the price exceeds the boat's value.
Conversely, one of the big advantages of yacht auctions is the savvy bidder's ability to purchase a yacht at a discounted price. In many cases, boats that are extremely valuable get sold at a much lower price than the market value because of insufficient interest in the vessel or simply a lack of bidders. The draw of an auction for many bidders is this very scenario, and if the bidder is knowledgeable and experienced, he or she can walk away with a high-quality boat at a bargain price.