Not too many people know about the ins-and-outs of real estate auctions. For instance, did you know there are essentially three different types of real estate auctions? There’s an absolute auction, also known as an auction without reserve, as well as a minimum bid auction and/or a reserve auction (also known as an auction subject to confirmation). These three types of real estate auctions are all a little bit different from each other, and soon you’ll discover how they differ…
The absolute auction (an auction without reserve) is where the property gets sold to the highest bidder, regardless of the price. A sale is guaranteed and this sort of auction is quite popular. Sellers who use this type of auction can include homeowners as well as financial institutions or government agencies looking to sell properties.
Minimum Bid Auctions
The minimum bid auction is where the auctioneer accepts bids at or above a published minimum price. This minimum is known before the auction starts– it’s typically published in brochures or advertisements, as well as announced at the auction. Sellers like this type of auction because the sales price must be above a certain level. The reserve auction (which is subject to confirmation) is where the high bid is reduced to an offer not a sale. There’s no announced minimum bid published, and a seller can accept or reject the highest bid within a specified amount of time, which is usually up to 72 hours after the auction ends. A seller will usually predetermine the price at which they’re willing to sell their property, and they’re not obligated to sell if the bid price is unacceptable to them.
If you’re thinking of putting up a property for auction, or you want to buy a property at auction, connect with Wilson Auction & Realty Co. of Bryan, OH, at 866-870-5500 for more information.