Residential Commercial Spec Homes Industrial Estates Vacant Land Lake Properties Household Farms Antique

Benefits to the Seller:

	Buyers come prepared to buy
	Quick disposal reduces long-term carrying costs, including taxes and maintenance
	Assurance that property will be sold at true market value.
	Exposes the property to a large number of pre-approved buyers
	Accelerates the sale
	Creates competition among buyers – auction price can exceed the price of the negotiated sale.
	The seller knows when the property will sell
	Eliminates numerous and unscheduled showings
	Ensures an aggressive marketing program that increases interest and visibility.

Benefits to the Buyer:

	Smart investments are made as properties are usually purchased at fair-market value through competitive bidding.
	The buyer knows the seller is committed to sell.
	In multi-property auctions the buyer sees many offerings in the same place at the same time
	Buyers determine the purchase price
	Auctions reduce time to purchase property
	Auctions eliminate long negotiation periods
	Purchasing and closing dates are known.
	Buyers know they are competing fairly and on the same terms and all other buyers
	Buyers receive comprehensive information on property via due diligence packet

Broker, Realtor, and Salesperson participation invited!!

Earn a commission!

	Absolute Auction (auction without reserve)
	The property is sold to the highest bidder, regardless of price. Since a sale is guaranteed, buyer excitement and participation are heightened. Generates maximum response from the market place Many sellers, including institutions and government agencies have begun to use this method more frequently.

Minimum Bid Auction

The auctioneer will accept bids at or above a published minimum price. This minimum price is always stated in the brochure and advertisements and is announced at the auction. Reduced risk for seller as the sales price must be above a minimum acceptable level. Buyers know they will be able to buy at or above the minimum. The seller may, however, limit interest in the auction to only those buyers willing to pay the minimum bid price and therefore it must be low enough to act as an inducement rather than a hindrance.

Reserve Auction

In this scenario, the high bid is reduced, in effect to an offer not a sale.  A minimum bid is not published and the seller reserves the right to accept or reject the highest bid within a specified time – anywhere from immediately following the auction up to 72 hours after the auction concludes.   Sellers predetermine the price at which the property will be sold and are not obligated to confirm a sale other than at a price that is entirely acceptable to them.  The main disadvantage of a Reserve Auction is that prospective buyers may not invest the time and expense of due diligence when there is no certainty they will be able to buy the property even if they are the highest bidder!