What Are The Various Methods Of Auctioning?
A. Essentially, there are three different types of auctions: 1) ABSOLUTE AUCTION (Or auction without Reservation). The properties sold to the highest bidder, regardless of the price. The main advantage of an absolute auction is that it generates maximum response from the market place. Since a sale is guaranteed regardless of the price, buyer excitement and participation are heightened. Because this type of auction generates as ideal response, many estate properties, financial institutions and government agencies have begun to use this method in greater frequency. Despite the fact this type of sale attracts a larger number of buyers and high bid offers, the guarantee sale at the highest bid, regardless of price, often makes a seller fell nervous and at risk, it often brings the highest bid due to the strong number of bidder this method generates. 2) MINIMUM BID – The auctioneer will accept bids at or above a disclosed price. The minimum price is always stated in the brochure, in the adv
A. Essentially, there are three different types of auctions: 1) ABSOLUTE AUCTION (or auction without a Reserve) – Properties sold at this type of auction are sold to the highest bidder, regardless of the price. The main advantage of an absolute auction is that it generates maximum response from the market place. Since a sale is guaranteed regardless of the price, buyer excitement and participation are heightened. Because this type of auction generates an ideal response, many estate properties, financial institutions and government agencies have begun to use this method in greater frequency. Despite the fact this type of sale attracts a larger number of buyers and high bid offers, the guarantee sale at the highest bid, regardless of price, often makes a seller feel nervous and at risk, it often brings the highest bid due to the strong number of bidders this method generates. 2) MINIMUM BID – The auctioneer will accept bids at or above a disclosed price. The minimum price is always state
