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Auction Types
· Absolute: By law, once the auction starts the seller must accept the highest bid – no matter the price.
· Minimum Bid: By law, a minimum bid acceptable to the seller can be advertised. Once the auction begins the seller must sell if the high bid meets or exceeds this minimum bid.
· Reserve Auction: By contract with the auctioneer, the seller agrees to set a “reserve”, or minimum acceptable winning bid, which remains confidential and may not be disclosed. If this “reserve” is met or exceeded at auction, the seller is required to sell. If the “reserve” is not met, the seller has the choice to accept or reject the highest bid.
· Seller Confirmation: When no specific Reserve Price is set by the the Seller and Auctioneer, the Auction is called a “Seller Confirmation” auction. So, the Seller will “confirm” if the highest and best offer is acceptable.
Auctions: Live and “Silent”
· Live Auctions: For almost as long as man has been around, people have been called to buy something by competing with others – the highest bidder being the winner. It was true in ancient times, and it’s still true. In more recent times, farmers and livestock sellers and buyers continue to rely on the live auction concept. Today, expensive art, jewelry, autos, and homes are sold regularly at live auctions.
· “Silent” Auctions: Now modern technology has produced on-line auctions like “e-Bay” and others. Communications and the urge to buy products over great distances have led to auctions that are conducted over telephones, faxes, e-mail, on websites, and through “snail” mail. These auctions often last over extended periods to allow more time for viewing and response. Our “Competitive Offer Sale” is such an auction. |
