The Different Types of Real Estate Auctions

A real estate auction works pretty much like any othermailed in to a specified place before the opening of
type of auction. It does not matter if the property isbidding. Bids cannot be changed once the bidding has
owned by the seller, or a government auction ofopened, and the property is given to the highest bidder.
foreclosed property, auctions are an exceptional wayNobody knows what anybody else bid, so you bid the
for selling and buying property fast, with the prospectamount of money you are willing to spend to win the
of receiving a great deal.property.
There are typically three forms of auction used in aPublic Auction is the most common form of auction,
real estate. They are Absolute Auctions; which isthis is where bidders register to bid and bring the bid
where the property is sold to the highest bidderdeposit to the auction. Bidders bid on the property
regardless of the price this is a no reserve auction.which is run by an auctioneer once the bidding is over
Minimum Bid Auctions start at a minimum bid, which isthe highest bidder is given the property.
declared before the auction starts. Reserve Auction isAuction by Mail is where bid deposits are mailed to the
where the minimum bid is private the seller sets theappointed office and bidders are able to raise their bids
minimum bid that he is willing to sell the property for.by mail, e-mail, fax, on-line, or in person. The auction
The auction goes on like there is no minimum, but if thelasts a few days, and the high bidder is awarded the
reserve price is not met, there will be no winning bidder.property when bidding stops.
The ways which these auctions are executed canOn-line Auction is where the bidding is done online and
differ depending on the kind of property, and the waythe highest bidder at the end of the auction wins the
in which the seller desires to auction his property.property.
These include Sealed Bids which is where bids are