Redefining Perceptions

about Real Estate Auctions

Types of Real Estate Auctions

The types of auctions and methods of bidding are tied to the seller's goals, market conditions and property characteristics. We evaluate each property individually then develop a prospective buyer profile, where will we find the buyer and what structure will create comfort and motivated the profiled buyers to bid.

Open Outcry Auctions – Used where the buyers prefer to bid in person and will buy the property exactly under the terms of the offering. This strategy is selected when price is the sole consideration as to who buys the property. This exciting method much resembles a fine art or other collectable auction that you may have experienced in person or on television.

Sealed Bid Auctions – In this type of auction bidder submit a bid on the approved real estate sales contract which is submitted with certified earnest money funds. The seller selects the winning bid. This type of auction is favored if there is a likelihood that the seller is interested in considering optional terms to purchase or there is more than one property being offered and assemblage can be determined by each bidder to meet their individual needs.

On-Line Auctions – On line auctions are simply another approach to an open outcry auction. An online bidding platform can be much like Ebay or it can be in conjunction with an open outcry auction.

Simulcast Auctions – An open outcry auction that is conducted in two or more bidding locations simulataneously allowing bidders in different cities or different countries to bid for the same property.

Hybrid Auctions – Hybrid Auctions simply include elements of the various programs listed above providing the seller with the optimum approach to create additional bids for their property.

Offering Methods

Absolute or Without Reserve – There is no minimum bid and the seller is committed to sell the property to the highest bidder, regardless of price.

Minimum Bid or Disclosed Reserve – A minimum bid is disclosed committing the seller to sell the property to the highest bidder either at or over the published minimum bid.

With Reserve – The seller reserves the right to accept or reject the highest bid.

Types of Bidding

Traditional Bidding – In a traditional auction, the auctioneer begins by asking for an opening bid and then the audience continues to escalate bids until the highest bidder is determined.

High Bidder's Choice - In this style of bidding, similar properties are grouped on a display next to the auctioneer. Bidders then bid for the right to select the property of their choice from the display. The highest bidder's choice is then removed and a subsequent round of bidding begins. This style of bidding is most commonly used on the sale of new construction condominiums or townhomes.

Multi-Par Bidding – Multi-Par Bidding is most commonly used on the sale of large undeveloped land where multiple parcels of land are offered. This method allows the bidder to place bids for various configurations of parcels based on the bidder's desire to assmeble the parcels.

Types of Properties Sold

Over the course of more than twenty years our team has successfully marketed and sold virtually every asset type of real estate, in more than forty states plus Canada, Mexico, the Caribbean, and Central and South America. The major categories include:

  • Residential – New construction condominiums, townhomes, single-family homes, resort residences, fractional resort ownership, penthouses, historic mansions, luxury estates, equestrian estates, co-ops, and home sites.
  • Commercial – Apartment and office buildings, senior housing, shopping centers, restaurants, night clubs, storage facilities, boat slips, and income properties.
  • Industrial -Factories, freight/transportation facilities, grain elevators, warehouse from 5,000 sq. ft. to more than 700,000 sq. ft.
  • Special Purpose Properties - Schools, hospitals, churches, theaters, athletic facilities, parking garages, marinas, goldmines, mineral rights.
  • Hospitality - Hotels, bed-and-breakfasts, remote fishing lodges.
  • Vacant Land & Acreage - Development and investment land, recreational property.

Bankruptcy or Partnership Disolution – Auctions are excellent methods of bringing transparency to the sale of assets for the dissolution of a partnership or the sale of assets in a bankruptcy situation for the benefit of creditors who prefer not to take title to the asset but would rather sell it immediately at market value without assuming the liability of being part of the chain of title.
Trust and Estate Sales – The duties of fiduciary or trustee include the following in the sale of an asset: Making the asset available to all who might have an interest in buying the asset, transparency of the transaction, having all bidders bid under the same terms and conditions. The real estate auction is the solution for trustees to these important issues.

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