As the inventory of new and existing condominiums and single family homes continues to grow, many Developers and Owners are facing the challenges of increasing costs of built up inventory being held for longer periods of time, especially in the midst of a market downturn.
Developers can choose from both a Reserve Auction (a predetermined amount the property can sell for), or they can also Auction properties using the Absolute Auction method (in which the highest bidder wins, regardless of price). Many Developers choose to mix the offering, using both absolute and reserve options to attract a larger number of bidders. The net result often ends with higher bid amounts and more inventory being sold.
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