What is the difference between an “absolute” auction and a “reserve” auction?

An “absolute” auction (without reserve) means that the property is sold to the highest bidder, regardless of price. A “reserve” auction (subject to confirmation) gives the seller the right to confirm the high bid at the conclusion of the sale. Unless advertised as “absolute” and disclosed in the auction Terms and Conditions of Sale, auctions …

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How is a real estate property marketed?

One advantage of the auction process for real estate is the benefits of a customized marketing plan. The property is exposed to the widest possible buyer audience, increasing the possibility of a successful sale at the highest possible price. Using an auction marketing campaign, the property will usually be marketed separately, differentiating it from other …

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Who is the ideal auction seller?

The goal of a successful auction is to generate the highest possible sale price for the property in the shortest amount of time. The ideal auction seller is a seller that is interested in completing the sales process promptly without waiting to the market to finally recognize their property and then negotiate a sales price. …

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Why would a property successfully sell using the auction method if it did not sell using the traditional real estate listing method?

It is common that a property listed traditionally is unrealistically priced. When an asking price does not represent the current market value of a property, buyers are reluctant to make a lower offer. With an auction, there is no asking price so that problem is eliminated. In addition, the short time period for promoting a …

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