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 Sam
Site Admin
Joined: 21 May 2005
Posts: 281
Location: CALIFORNIA
117.49 Dollars($)
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 Posted: Sat Apr 10, 2004 4:59 am Post subject: Absolute Auction |
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Absolute auction is a type of auction in which the assigned property is sold to the highest bidder irrespective of its price.
The assigned property for absolute auction is marketed by Auction department through several services and no fees are charged for providing the services. Services provided by the auction department are:
- Brochures.
- Direct Mail.
- Internet Exposure.
- State Wide Multiple Listing.
- Classified Advertising.
- Local and Regional Newspaper Advertising.
- Business and Investor Newspaper Advertising.
- Company Wide Auction Announcements.
- Auction Signs.
- Customer Service.
- Graphics Design.
- Broker Flyer Distribution.
- Twenty-Four Hour Voice Mail Request Line.
- Auction Staff.
Many people searches for this type of auction to get the maximum response from the market place.
For example, In a real estate auction whose value is $400,000. Jennifer offered a price of $700,000. Since, no one else offered a higher price than $700,000, the house was sold to Jennifer. This type of an auction is known as 'absolute auction'. |
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Brigitte Vattheuer
Guest
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| Posted: Mon Jan 01, 2007 9:19 am Post subject: |
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| Is absolute auction the only method which can be used or there are other methods also available? |
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colin
Moderator
Joined: 30 Jun 2006
Posts: 602
Location: Waltham, Massachusetts
112.65 Dollars($)
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| Posted: Mon Jan 01, 2007 9:47 am Post subject: |
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Hi Brigitte,
Welcome to Mortgagefit forum.
There are two other methods available which are known as the Minimum Bid Auction and the Reserve Auction.
In the Minimum Bid Auction,- There is a minimum price which is published and the bid which is equal to or more than that price is accepted by the auctioneer. The lowest price which will be accepted is announced at the time of auction and is always mentioned in the advertisements & brochure.
- It reduces the risk for the seller because the price which he will get will always be more than a certain minimum level.
Whereas in Reserve Auction,- Seller has the right to predetermine the sale price and reserves right of acceptance or rejection of the amount of highest bid within a specified time frame. This time frame can be immediately after the auction or up to seventy two hours after the conclusion of the auction.
- The disadvantage of reserve auction is that a buyer remains uncertain about buying the property even after placing the highest bid.
Colin |
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