How do Property Auctions Work?

Updated: Jan 21, 2019

Understanding the types of property auctions and the steps in an auction.

Types of Auctions

Absolute Auctions

In an absolute auction, the property will absolutely sell to highest and last bidder regardless of price. This is rarely used in selling real property these days. Absolute auctions are primarily used in the sale of personal property such as: automobiles, goods, machinery, coins, and furniture.

Auction with Reservation

This type of auction is primarily used in the auction industry when selling real property. The benefit of this auction is that the seller has the right to accept or reject the highest and last bid.

The Auction with Reserve keeps the seller in value control until the end of the auction. Even though there is a reserve, the urgency to buy is created through letting potential buyers know this property is scheduled to sale on a certain day.

Steps in an Auction Method of Sale:

1. Meeting between seller and Henry Realty & Auction.

2. Auctioneer receives from seller an overview and information about the property.

3. Proposal presentation from Henry Realty & Auction.

4. Contractual agreement reached with Henry Realty & Auction, LLC

5. Decide on a date certain when your property will be SOLD!

6. Gather all pertinent details of property.

7. Begin a strategic 21 day marketing campaign that highlights your property.

8. Meet with your attorney.

9. Update seller to marketing production.

10. Meet with potential buyers.

11. Open house if needed.

12. Update seller.

13. Auction day.

14. Sign contract with high bidders.

15. Begin tracking for closing with closing agent.

16. Update seller.

17. Closing.

18. Check in sellers’ hand

Types of Properties

At Henry Realty & Auction we can assist you in selling a wide range of property.

  • Homes

  • Acreage

  • Commercial

  • Property of estates

NEXT: The Benefits of Auctions -->

#gettingstarted #auctions

79 views0 comments

Recent Posts

See All