Absolute Auction
This is an auction where property is sold to the highest qualified bidder with no limiting conditions, contingencies or amount, and is time-defined.
Although it may sound like the riskiest way to auction, Absolute auctions are actually the most successful. Absolute Auction promotes a sense of buyer urgency (to perform by a specific time or forever lose the opportunity to buy).
Absolute Auction is the only form of marketing that will convey this message. By using the Absolute Auction method, the auction company attracts the largest pool of qualified, competing purchasers thus creating maximum value.
Absolute Auction also demonstrates a higher level of seller commitment to potential buyers: they know without a doubt that the property will sell.
Minimum Bid Auction
In this form of auction, auctioneers accept bids at or above a published price. While this type of auction seems to reduce seller risk, Minimum Bid Auction also limits interest in the auction. Minimums must be low enough to act as inducements rather than as a hindrance. Minimum Bid Auctions typically generate considerably less marketplace interest than Absolute Auctions.
Reserve Auction
An auction where sellers reserve the right to establish a reserve price to (in effect), accept or decline any and all bids, or to withdraw properties at any time prior to the announcement of the completion of the sale (by auctioneers).Though seemingly creating a seller safety net, Reserve Auction also conveys (to buyers) seller reservations.
Of the three types of auctions, Reserve Auctions generate the least amount of marketplace interest.
For more information on real estate auctions call (877) 612-8494 or go to www.ajkaras.com.
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