ASG works with the seller to determine
the most appropriate auction strategy
for their property.

TYPES OF AUCTION PROGRAMS

There are three strategies to offer real estate at either an oral or sealed bid auction. Read on for a general descriptions of these auction types.

ORAL AUCTION STRATEGIES

Absolute Auction: There is no reserve or minimum bid and the property is guaranteed to be sold to the highest bidder regardless of price.

Minimum Bid Auction: An auction in which the seller sets a disclosed minimum bid price at which the property is guaranteed to be sold if the bidding reaches or exceeds the established minimum bid. The minimum bid is always stated in the brochure and advertisements and is announced at the auction.

With Reserve Auction: The Seller does not guarantee a sale. The Seller reserves the right to accept or reject the high bid either at the auction or within a predetermined time following the auction. During the actual bidding on a property offered "With Reserve," the reserve can be removed and the sale guaranteed.

Sealed Bid Auction Strategies

Sealed Bid Auction: A method of sale where confidential written bids are submitted prior to a predetermined bid submittal deadline. Often a sealed bid auction will provide for a best and final offer (BAFO) allowing selected bidders an opportunity to either maintain or increase their current bid. As with the live auction programs, due diligence is done in advance of the bid deadline.

Additional Information

For additional auction terminology go to the Illinois State Auctioneers Association or
the National Auctioneers Association.