Knowledge is power, a quote by Sir Frances Bacon. When dealing with a real estate auction it is important that you know the lingo.

Auctions Styles! 

Reverse Auction:

This type of auction is when the seller starts at the highest price he would like to obtain for the item that is up for bid. Example; Seiko Watch starting bid is $200.00 and no one is bidding, then it goes down to $185.oo it will continue to drop until someone is willing to place a bid or the seller withdraws it from bidding. This type of auction should be stated up front. When a home is listed traditionally it is a typical reverse auction. The seller starts out with a opening price and he/she then see what kind of offer will be presented

Minimum Bid:

This type of auction is where the price starts out with a minimum opening bid. Example: Vacuum Cleaner, opening minimum bid is $50.00 and then the price goes up from there. Beware some seller will place a reserve on an item even if they have a minimum bid opening. This means that if the seller does not get his price he can cancel his participation in the auction or sell it to the highest bidder.

Absolute Bid:

This has no reserve or no beginning price point. Example: Seiko Watch, can start at $1.00 and depending on the interest the sky is the limit.

An auction is like getting in on the ground floor.

***Remember when bidding on an item, many auction houses have premiums that are included in the final sales price****