Minimum Bid Auction
In a minimum bid real estate auction, the auctioneer will accept bids at or above a disclosed price. The minimum price is always stated in the brochure, in the advertisements, and is announced at the auction. An alternative approach is to post a "suggested opening bid," but that opening bid does not commit the owner to sell at that price. An advantage to selling via the minimum bid method is that it creates a safety net for the seller that does not exist in the absolute method. The seller's risk is limited in that the price that the property sells for will fall above a minimum acceptable level.
Auction with Reservation
In an auction with reservation, a minimum may or may not be posted, and the seller reserves the right to accept or reject the highest bid. The owner predetermines the price at which the property will be sold which typically is not disclosed to the buyer. The advantage is that the seller is not obliged to accept a price other than one that is entirely acceptable.
Selling by the Auction Method
Sell from list to close in as little as 45 days. When you specify a date on which the property will be sold a sense of urgency is created with prospective buyers. This becomes the catalyst for the entire sales process. Your property is showcased exclusively in the marketplace which provides maximum exposure reaching the most potential buyers in the targeted market.
You, the seller, set the time and date of the sale. Buyers act on your schedule and terms. Negotiations are eliminated by specifying down payments and closing time frames. Potential competition for your property can exceed everyone's expectations in price. Unique and hard to price properties can be difficult to get a true appraisal with few comparables. Guesswork in establishing an asking price is eliminated with the auction establishing fair market value. Potential for upside sale is unlimited.