Types of Auctions
An auction where the property is sold to the highest
qualified bidder with no limiting conditions or amount. The seller
may not bid personally or through an agent. Also known as an auction
without reserve. This type of auction means the property will be
sold to the highest bidder regardless of price.
Auction With Reserve
An auction in which the seller or his agent reserves the
right to accept or decline any and all bids. A minimum acceptable
price may or may not be disclosed and the seller reserves the right
to accept or decline any bid within a specified time. PAX AUCTIONS
discourages sales with a high reserve price and asks sellers to
disclose any minimum or reserve price prior to a sale.
In the case of bankruptcy and certain court ordered
auctions, many properties are sold subject to a reserve price or
final ratification by the Court before the sale can be
completed.
Auction Without Reserve
See Absolute
Auction.
Ballroom Auction
An auction of one or more properties conducted in a
meeting room facility, hotel convention facility or other indoor
location. At this type of auction it is assumed that the bidders
have inspected the property and are usually shown pictures and other
descriptions of each property as it is offered for sale. The
ballroom auction format allows for progressive auctioneers to
utilize Internet bidding.
Bidder's Choice
A method of sale whereby the successful high bidder wins
the right to choose a property or properties from a grouping of
similar or like-kind properties. After the high bidder's selection,
the property is deleted from the group, and the second round of
bidding commences, with the high bidder in round two choosing a
property, which is then deleted from the group and so on, until all
properties are sold. This type of bidding is very popular when
selling building lots, timeshares and condominiums.
Caravan Auctions
A series of on site auctions advertised through a common
promotional campaign that is located very close together. The
bidders and auctioneer will actually travel from
location-to-location and call each auction while all of the
participants are at each property.
Estate Sale
The sale of property left by a person at his or her
death. An estate auction can involve the sale of personal and/or
real property.
Foreclosure Sale
The foreclosure sale is when a lender cannot collect on a
mortgage or a loan and has petitioned the court to allow or order
the sale. This type of sale is an excellent manner for investors to
secure property as the sellers main interest is to recover as much
of amount of the loan as possible. This type of sale is sometime
subject to ratification by the court to be completed.
An Internet auction is where the property is offered on
the Internet only and there is no live auctioneer or live bidders.
This typical sale is conducted with computers and a variety of
formats depending upon the venue selected by the seller. The auction
has a specific open and close date and time, with fixed bid
increments. A bidder will enter their bid against other Internet
bidders or they may enter a "proxy bid" that will bid up to their
predetermined high bid amount.
Live Internet Auction
A live Internet auction is where the online (Internet)
bidders are competing with the bidders who are physically present at
the auction site. This method has proven to be excellent for both
buyers and sellers due to having a professional auctioneer
facilitate the sale. Live Internet auctions allow the same types of
features as an Internet only auction such as proxy bidding; the main
benefit is they allow for a qualified bidder who has already
researched the property to participate in the live event, no matter
where they are located.
Minimum Bid Auction
An auction in which the auctioneer will accept bids at or
above a disclosed price. The minimum price is always stated in the
brochure and advertisements and is announced at the auctions.
Multi-Par Auction
A Multi-Par auction is where bidders may bid on a single
property sold either as an entire parcel or in multiple parcels. A
good example is when a tract of land such as a farm or timberland
that would traditionally be sold to a large company due to the size
and price but would make excellent home sites, ranches or other uses
in smaller parcels. The property would be parceled or grouped prior
to being offered for sale and advertised as such. The property is
then simultaneously offered as whole and partial parcels to bidders.
If a 1,000 acre parcel was divided into 50 lots of 20 acres each and
offered for sale to individuals, the bidders on the smaller parcels
are exercising a form of group buying power in that for every
$1,000.00 bid increment, it will create a $50,000.00 bid increment
for the parties bidding on the entire parcel. The Multi-Par auction
is based upon deriving the maximum price for the seller, no matter
which group of bidders wins.
Multi-Property Auction
A group of properties offered through a common
promotional campaign. The properties to be auctioned may be owned by
one seller or multiple sellers. A Multi-Property auction may use any
of the types of auctions described here. This type of auction offers
both buyers and sellers many advantages, the seller a shared
advertising and promotional campaign, the buyers a wider variety of
property at a single sale.
Multi-Seller Auction
Properties owned by many sellers, offered through a
common promotional campaign are auctioned in a single event. A
Multi-Seller auction may use any of the types of auctions described
here. This type of auction offers both buyers and sellers many
advantages, the seller a shared advertising and promotional
campaign, the buyers a wider variety of property at a single
sale.
On-line Auction
See Internet
Auctions
On-site Auction
An auction conducted on the premises of the property
being sold.
Reserve Auction
An auction in which the seller reserves the right to
establish a reserve price, to accept or decline any and all bids or
to withdraw the property at any time prior to the announcement of
the completion of the sale by the auctioneer. PAX AUCTIONS
discourages sales with a high reserve price and asks sellers to
disclose any minimum or reserve price prior to a sale.
Sealed Bid
A method of sale utilized where confidential bids are
submitted to be opened at a predetermined place and time. Not a true
auction in that it does not allow for reaction from the competitive
market place. In some cases this type of auction will work to the
benefit of the seller as it forces a bidder to place their best and
final offer.
Subject to Confirmation
See Reserve Auction. Auctions are subject to confirmation
for a variety of reasons, the most common be judicial or
confirmation by the Court in a bankruptcy, collection or foreclosure
sale.
Tax Sale
Public sale of property at auction by governmental
authority, due to nonpayment of taxes. There are many types of tax
sales, from an IRS sale, to a local government enforcing the sale
for collection of property taxes.
Trustee's Sale
See Foreclosure and bankruptcy auctions. A sale at
auction by a trustee to enforce the terms and conditions of a
mortgage and/or a deed of trust. A sale at auction overseen by a
bankruptcy trustee to satisfy creditors of a bankrupt party.
Webcast Auction
See Live Internet Auction. An auction that is conducted
with live bidders and an auctioneer that is broadcast on the
Internet via the World Wide Web to accept Internet bids from a
global audience. Bidders must be registered and meet the same
deposit and other financial qualifications as live bidders. The
bidding is conducted in real time and creates a higher level of
excitement for everyone
involved. |