What are the different types of Real Estate Auctions available to me?

A. Essentially there are three types of auctions: 1. Absolute Auction (or auction without reserve) 1. The property is sold to the highest bidder, regardless of the price. 2. Since a sale is guaranteed, buyer excitement and participation are heightened. 3. Generates maximum response from the market place. 4. Many sellers, including financial institutions and government agencies have begun to use this method more frequently. 2. Minimum Bid Auction 1. The auctioneer will accept bids at or above a published minimum price. This minimum price is always stated in the brochure and advertisements and is announced at the auction. 2. Reduced risk for seller as the sales price must be above a minimum acceptable level. 3. Buyers know they will be able to buy at or above the minimum. 4. The seller may, however, limit interest in the auction to only those buyers willing to pay the minimum bid price, and therefore it must be low enough to act as an inducement rather than a hindrance. 3. Reserve Auctio ... more