If you’re new to auctions, we may sound like we’re speaking a foreign language.
Below are some standard terms, formats and strategy categories used frequently in the auction industry.
- Single Seller/Stand-Alone:
A single offering format for high profile properties or very specialized markets as well as properties that cannot be grouped with other offerings because of specific selling date or a lack of compatible auction properties in the area.
- Single Seller/Multiple Property (Portfolio Sale):
This auction format allows multiple offerings at a single location and time, or at regional locations at different times, which can reduce overall marketing costs.
- Multiple Seller/Multiple Property Auction Format:
Best applied to properties within a single geographical area or to similar properties spread across a large geographic area. Multiple sellers can pool their properties and resources to create a larger auction event of greater combined interest.
Can be offered with any of the formats above.
Bids are called as prospective buyers compete in their attempt to win the property in this fast-paced productive format.
- Sealed-Bid Offerings:
Bids are submitted through pre-approved contract forms allowing the seller more flexibility to review offers when considering variables other than price.
Converting a Sealed Bid sale to an Open-Outcry sale or vice versa, during the marketing process.
- Online Bidding:
Bidders from anywhere in the world can access the auction and bid to compete simultaneously for the same properties.
The following strategies can be presented with any of the above formats/types:
- Multi-Par Bidding:
Popular for bidding on undeveloped land, multi-par bidding allows bidders to first bid on individual tracts of land within a larger land tract before bids are taken on the large land parcel in its entirety.During the second phase of multi-par bidding, the auctioneer offers various combinations of the smaller tracts. The last step of the auction takes bids on the large land parcel in its entirety.
- Without Reserve/Absolute:
No required minimum bid. Highest bid accepted regardless of price.
- With Reserve:
The auctioneer to ask the bidders to open the bid and the seller reserves the right to accept or reject the high bid.