How are real estate auctions carried out?
There are generally three types of auction used in a real estate situation. They are: • Absolute Auction The property is sold to the highest bidder regardless of the price (no reserve). • Minimum Bid Auction An auction performed at an announced minimum price, which is stated before the auction commences. • Reserve Auction An auction where the minimum bid is not published, but the seller privately determines a minimum bid which he is willing to accept on the property (reserve). The auction goes through as if without a minimum price, but if the unannounced reserve is not met, there is no winning bidder for that auction and no one receives the property. The methods by which these auctions are performed can vary depending on the type of property and the venue in which the seller prefers to present his property. These can include: • Sealed Bid Bids are mailed in to the specified location prior to the opening time of bidding. Bids are not modifiable after they bidding has opened, and the pro
