Are real estate auctions only for distressed property?
This is a major misconception about auctions. The fact is auctions are the primary sales method when selling valuable assets such as vintage vehicles, multi-million dollar homes, and priceless pieces of art. What is the auctioneer really saying? The auctioneer’s chant is a sequence of increasing numbers and “filler words”. The auctioneer’s chant is simply a statement followed by a question. For example: I have 5 dollars. Would you bid 10? What is an “Absolute Auction”? There are different types of auctions (i.e. Reserve, Minimum Bid, etc.). An “absolute auction” is an auction where the property is sold to the highest bidder. Unlike a reserve auction, there is not a reserve price that must be met to complete the auction sale. What is an “Auction with a Reserve”? A “reserve” auction means that a price has been set between the seller and the auctioneer that must be met to complete the sale. Reserves are often used to provide the seller with security that they receive at certain amount of
