| For some home owners, the fastest and most | | | | assume that the bidders will be plentiful. The absolute |
| effective way to sell their property is via a real estate | | | | auction is a favorite with those seeking a home |
| auction. The tempo and excitement generated from | | | | purchase and for the active real estate investor. |
| the auctioneer, coupled with the enthusiastic bargain | | | | Marketing campaigns are well-financed by the auction |
| hunters will almost always yield a quick sale. Not to be | | | | house and usually generate a large crowd. |
| confused with repossessed properties that are sold at | | | | 2. The Reserve Auction. |
| auction on the court house steps, the real estate | | | | The reserve auction is similar to the absolute auction, |
| auction houses provide a platform for eager sellers | | | | except the seller has the right to set forth a minimum |
| and qualified buyers to come together under one roof. | | | | bid. In addition, the seller may accept or decline an |
| The real estate auction blocks are a win-win situation | | | | offer or may opt to counter a specific bid. If the seller's |
| for distressed borrowers to release the cumbersome | | | | minimum acceptance price has been met, then the |
| property, and can be a treasure trove for real estate | | | | seller has the right to declare that he or she wishes to |
| investors and savvy home buyers. | | | | convert the auction process into an absolute auction, |
| 1. The Absolute Auction. | | | | whereas all the terms and conditions applied to the |
| The absolute auction is a standard type of auction | | | | absolute auction will be observed. |
| process where the property will be sold to the highest | | | | The reserve auction is a definite advantage to the |
| bidder. The absolute auction will not set forth a reserve | | | | seller as the terms and conditions allow the seller to |
| price and may be regarded as one of best venues to | | | | accept or reject an offer made on the home. In some |
| market and move a property. And although the | | | | cases where the sellers could not move their |
| property may move quickly, there is always a risk to | | | | properties fast enough, even through a short sale, the |
| the seller that the highest bid might fall below market | | | | reserve auction allows them a chance to get the top |
| value. In such cases, the deal is sealed at the sound of | | | | dollar amount to put towards their mortgage balance. In |
| the gavel at whatever the final bid may bring. | | | | a successful reserve auction, the seller may walk |
| If you wish to present your home to an absolute | | | | away with several thousand dollars short of the loan |
| auction bidding list, check with your local Realty | | | | balance, but the shortage may be negotiated with the |
| Association for a list of professionals in your area. And | | | | lender and a payment plan devised to bring the |
| no town is too small for a property to fair well at an | | | | outstanding balance down to zero. The bottom line is |
| absolute auction. The sale is guaranteed as long as | | | | that the reserve auction puts the seller in the driver's |
| there is at least one qualified bidder, and is safe to | | | | seat and allows for greater financial control. |