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.
AUCTION FORMATS
- 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.
AUCTION TYPES:
Can be offered with any of the formats above.
- Open-Outcry:
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. - Convertible:
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.
OFFERING STRATEGIES:
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.