The Baltimore Maryland Agent: Dutch Auction, Silent Auction, Sealed Bid Auction - the 411

Dutch Auction, Silent Auction, Sealed Bid Auction - the 411

Dutch Auction:This is the method used in the famous Dutch flower auctions; it is an interesting change in dynamic.  The Auctioneer starts the bid calling at a high level and reduces the bid, increment by increment.  The FIRST bidder with his card in the air wins and the auction is over!

 

Silent Auction:Bids are written on a piece of paper and bidders are free to increase their bids in writing until a certain timed deadline and the last bid wins.

 

Sealed Bid Auction: With this type of sale, there is no live auction held.  Instead, the auction company announces that all bids will be accepted until a certain date.  The terms of the sale are provided and all offers must abide by them.  The auction company then opens the bids after the deadline and notifies the high bidder if the seller accepted their offer.  All bidders are notified of the results of the Sealed Bid Sale.  This method should only be selectively used since it lacks the sense of urgency and competition of live auctions.

 

Sealed Bid Sale with the Top Five Bidders invited to an auction As opposed to awarding the high bidder in the Sealed Bid Sale the property (if the bid was acceptable to the seller), the auction company invites the top five bidders to a live auction.  Because of the lengthy process, many bidders will not participate in these types of auctions.

 

Rachel Rabinowitz

Broker / Owner Guerilla Realty  and

Vice President Tranzon Fox Auctions

443.841.5916 direct

rachel@go-guerilla.com / rrabinowitz@tranzon.com

 

 

 

Comment balloon 0 commentsRachel Rabinowitz • July 05 2011 09:05AM

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