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GRAND MANOR AUCTIONS presents the most common auction formats and types, as well as offering strategies.
Auction Formats:
- Stand-Alone Auction: This is the preferred auction format for a high end property in a specialized market. This format is ideal for Fine Homes where the auction will be held at the property.
- Single Seller/Multiple Property Auction: This auction format allows multiple property offerings at a single location and time, or at local locations at different times. If all the properties are in the same market, this type auction can reduce overall marketing costs. If the portfolio is spread among different cities, auctions can be scheduled closely, giving the seller the opportunity to consider all offers, thereby allowing for more flexibility in the decision process.
- Multiple Seller/Multiple Property Auction: This type auction applies to similar properties within a local area. This format allows multiple sellers to pool their properties and resources to create a larger auction event with greater public interest, which is much more attractive to sellers of smaller properties with limited marketing budgets.
Auction Classifications
Any of the above formats can be offered in one of the following types:
- Open-Outcry: This is the most exciting and effective format. Bids are shouted as buyers compete in an attempt to win the property. Extremely professional and grand, our auctions are very similar to fine art auctions you may have attended. Quite often, bidders compete via telephone or Internet, and when the final sale is signaled by the gavel's strike, the full power of a Grand Manor Auctions is realized with the property being sold at market value.
- Sealed Bid Offerings: Bidders submit bids in predetermined contract form. This allows the seller more flexibility to review offers.
- Convertible Auction: Converting a Sealed Bid sale to an Open-Outcry sale or vice versa, during the marketing stage.
- Simulcast Auction: Where an Open-Outcry auction is broadcast to multiple locations via Internet or other source, allowing bidders both nationally and internationally to compete for the same properties.
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Types of Auctions
Any of the above formats and classifications can be presented with one of the following offering auction types:
- Auction With Reserve: A "suggested opening bid" is published as a guide, where the auctioneer will ask the bidders to open the bid; the seller reserves the right to accept or reject the high bid. The Seller has the right to cancel the auction, the right to sell before the auction, the right to decline the final strike price, the right to counter offer the final strike price, and the right to accept the final strike price.
- Absolute Auction: There is no required minimum bid. The highest bid is accepted, regardless of price. With this type of auction: Property is sold to the highest bidder regardless of price; Since the sale is guaranteed the buyer participation and excitement are heightened; Auction generates highest response from the marketplace; Many government agencies and banks have begun to use this method more frequently.
- Minimum Bid Auction: An auction where the seller agrees to sell the property at or above an agreed to minimum bid price. An acceptable price is established prior to auction. The acceptable price is disclosed in all advertising. One that price is achieved, it converts to an Absolute Auction.
- Bidder's Choice Auction: This type auction offers groups of similar real estate properties. One property at a time is offered in the auction room. Bidders bid for the right to select the property of their choice from the pool. The winning bidder's property choice is then removed from the pool, and the auction continues with additional bidding on the remaining properties.
- Multi-Par Bidding: A method of bidding most often used for undeveloped land. This option allows bidders to first bid on individual tracts of land within a larger land tract. The next step of the auction takes bids on the large land parcel in its entirety. During last facet of multi-par bidding, the auctioneer offers various combinations of the smaller tracts. This auction method offers sellers the unique ability to evaluate which combination of offers provides the best overall result. This method also allows bidders the opportunity to purchase property in any configuration that best suits their needs.
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