The Firm and Time Defined Sale of Real Estate
Via Competitive Bid.

There are several methods of Real Estate Auctions, one of which could likely assist you in the sale of your residential or commercial property. Auction processes are infinite, but generally fall into one of the following categories two categories: Unreserved or With Reserve.

The auction strategy (or strategies) we recommend to employ to sell your property will be based on the value range of the property, the condition of the property, the number of properties in your portfolio, the type and nature of the property to be offered, the location of the property, current market conditions, the buyer profile, the target market and most importantly,  your goals. 

Which ever auction strategy we propose for your property, auction is the very best method of maximizing exposure and price, while minimizing time and carrying costs of no longer needed assets.

RESERVED vs. UNRESERVED

RESERVED = SUBJECT TO CONFIRMATION OR VENDORS ACCEPTANCE
Most real estate auctions The Bounds Auction Company conducts are by one of the following reserve auction formats.

◊ UNPUBLISHED MINIMUM RESERVE: An unpublished minimum reserve is a property value that has been agreed upon between the Auctioneer and the Owner of the property that is not shared with the public or the high bidder until after the auction, or never at all.  If during the auction the high bid exceeds the unpublished reserve amount, the Auctioneer can execute the right to sell for the Vendor, under contract, to sell the property to the high bidder.  If the minimum bid is not achieved, the Seller is under no obligation to sell and the auctioneer may not declare the property sold without consent of the seller.

◊ PUBLISHED MINIMUM RESERVE: A published minimum reserve means that if the opening bid does not exceed the published reserve amount, the property is not sold.  It also means that if the minimum published bid for the property is exceeded by $1.00 or more, the property is sold.

◊ "SUBJECT TO SELLER"S CONFIRMATION ":  The premise of a confirmation auction is that there is no minimum opening bid or contractual reserve empowering the auctioneer to sell. The seller retains the right to refuse or accept the best bid.

Success of any by reserved offering depends upon achieving seller's acceptance quickly. Bidders must know they can buy for truly competitive bidding to take place. The goal of any reserved auction is to met the expectation of the seller, then by releasing the property to the bidding, to exceed that seller's expectation.   

UNRESERVED = ABSOLUTE : An unreserved auction is absolute. Whatever the high bid, the property is sold.  Bounds Auctions rarely recommends absolute terms for real estate but there are circumstances where absolute terms are appropriate.

Absolute terms will out perform any other auction terms. Nothing can stimulate attendance, interest and bidding like the knowledge that the next bid can win. Preformed properly, there is little risk.

real estate auction formats

ON-LINE:  Bounds Auction Company has invested thousands of dollars and experimented extensively with offering real estate & personal property auctions on-line. We currently offer 3 different on line platforms: #1. On Line Only. All bidding is accepted via the internet only. This is a timed format & offers the least expense to the seller and is our primary means of offering personal property. #2.  Live On-line bidding in concert with live bidding. We believe this is the most effective and is very much like phone bidding. #3 Live Web Casting. As more consumers have access to high speed Internet connections, this format will have a place in higher value sales. This format excells at REO, OREO and investor liquadation offering. Bounds Auction Co.is prepared with on-line bidding capabilities for real estate and it is offered on most every property we represent via one of our online bidding platform partners or through our own website.

LIVE BID:  Live bid auctions are just what you expect. During a live bid auction you would expect to bid on a property just like you would expect to bid on an antique, a work of art or a tool. A live bid auction is typically a public event held at the premises where bidders and spectators are able to enjoy the show together.  Most individual commercial & residential properties estimated to sell below $500,000.00 are usually live bid auctions. A live bid sale may also be held off site as well. 

TWO BID: A ‘two bid’ auction includes a written pre-auction bid followed by a live auction. The auction is then a restricted event including only those bidders that submitted an acceptable pre-auction written bid. This system is used most often when selling unique or exceptional residential real estate or with real estate along with other significant assets, like a turn key business package.

SEALED BID / TENDER BID: A sealed bid auction is used when dealing with complicated commercial real estate transactions where specific terms for the purchase are not all pre-determined by the Seller. In this instance, the buyer has some room to negotiate the terms of the purchase of the property, and the seller is provided an opportunity to potentially receive a higher price, due to the terms of the deal being somewhat negotiable and in some instances, even conditional.

FAX BID: The fax bid auction process was developed and trademarked by Gordon's Auctions of Ontario, Canada in 1997 and has spread to the US market due to its success. The FaxBid process is most often utilized when dealing with commercial or multi-family properties valued in excess of $500,000.00 or for very unique residential or commercial property. The FaxBid process allows bidders to bid from the comfort of their home or office by fax, or from anywhere by phone. The FaxBid auction process allows bidders more time to prepare finances and confirm partnership percentages before advancing bids. The FaxBid process only allows the top 3 "initial bidders" to proceed to the auction challenge. The auction challenge typically takes four to six hours. 

MULTI-PAR: Similar to the personal property auction technique“ buyer’s choice”, where high bidder may choose to buy 1 or all of similar items at that price, the " Multi – Par technique can be utilized whenever there are many lots or units to be sold including; residential and commercial condominium units, golf course lots, waterfront lots, subdivision lots and parceled farm land. A multi-par auction ensures maximum value for the property and gives each bidder the fairest opportunity to bid on the property, or package of properties the he or she desires the most. 

Often, a computerized multiple property software system is employed to assist both the auctioneer and bidders. The Multi – Par technique maximizes the value of properties by offering them in all possible combinations. 

100 West Ave. Suite 200 Beaver Hill South Jenkintown PA 19046  215 277 5384

© Bounds Auction Company 2009