Public intelligence is the best guarantee
that you are paying a fair price for the items being sold.
Absolute Auction (auction without reserve)
The property is
sold to the highest bidder, regardless of price.
sale is guaranteed, buyer excitement and participation are heightened.
maximum response from the market place
Many sellers, including institutions and government agencies have begun to use
this method more frequently.
Minimum Bid Auction
will accept bids at or above a published minimum price. This minimum price is
always stated in the brochure and advertisements and is announced at the
for seller as the sales price must be above a minimum acceptable level.
they will be able to buy at or above the minimum.
The seller may,
however, limit interest in the auction to only those buyers willing to pay the
minimum bid price and therefore it must be low enough to act as an inducement
rather than a hindrance.
In this scenario, the high bid is reduced, in effect to an offer not a sale.
A minimum bid is not published and the seller reserves the right to accept or
reject the highest bid. Sellers predetermine the price at which the property
will be sold and are not obligated to confirm a sale other than at a price that
is entirely acceptable to them. The main disadvantage of a Reserve Auction
is that prospective buyers may not invest the time and expense of due diligence
when there is no certainty they will be able to buy the property even if they
are the highest bidder!