Posts tagged sealed bid auction
A common question posed by property owners is whether an auction or sealed bid is appropriate for the property(or properties) they wish to sell. While both sales are actually “auctions” they are differentiated by the availability of bidding activity on the date of the sale.
When people think about auctions they envision participants openly bidding against one another, with each subsequent bid higher than the previous bid. An auctioneer may announce prices, bidders may call out their bids themselves (or have a proxy call out a bid on their behalf), or bids may be submitted electronically with the highest current bid publicly displayed. In some cases a maximum bid might be left with the auctioneer, who may bid on behalf of the bidder according to the bidder’s instructions. The auction ends when no participant is willing to bid further, at which point the highest bidder is the winner. Alternatively, if the seller has set a minimum sale price in advance (the “reserve” price) and the final bid does not reach that price the property remains unsold. Sometimes the auctioneer sets a minimum amount by which the next bid must exceed the current highest bid. The most significant distinguishing factor of this auction type is that the current highest bid is always available to other bidders. More >