There are 2 different types of real estate auctions.
In an absolute auction, the property will be sold to the highest bidder. This type of auction has no reserve. An absolute auction typically generates the most interest and excitement as the buyers know the property will sell to the highest bidder.
A Reserve Auction is sold subject to seller approval meaning the seller must approve/accept the final bid price. This is a great option for properties with a mortgage or lien.
With a reserve auction, there are variations that can include a published or unpublished minimum bid price. When the property meets or exceeds that price it is automatically considered sold. This is one reason why a property with a mortgage or lien could be a great option for a reserve auction. The minimum bid can be set at what needs to be met to allow the lien or mortgage to be satisfied.
Which auction type is best for my property?
There are a variety of factors that could benefit your property on whether to pick an absolute auction or a reserve auction. At Ron Gregory Realty & Auction, we do a full evaluation on every option based on liens, mortgages, property value, purchase price, location, etc., to determine which option is best for you and your property. We work for you and want to be sure you are 100% informed of the options you have, so you can decide what best fits your unique situation.