eAlom’s Travel Guide

Types of Auctions

Auctions can be divided into many types. In the property auctions industry, it varies depending on different factors. The main types are enumerated here.

Absolute Land Auctions
This type of property auction method, also called as auction without reserve, is sold to the bidder regardless of price. This type of auction usually is advantageous to the highest qualified bidder. There won’t be any limiting conditions or amount, nor does the auction involve any mediator or other agent.

Auction Without Reserve
This type of property auction involves a minimum acceptable price in which the seller or his agent reserves the right to accept or decline all bids. The seller here reserves the right to accept or decline any bid within a specified time.

Bidder’s Choice
This again focuses on the highest bidder. In the first round of auction, he wins the right to choose one, from a group of similar properties. Before the second round of selection the particular property chosen is deleted from the selection. Another highest bidder chooses a property from the second round from which the same will be deleted from the group. The process goes on until all properties are sold.

Internet Auction
In internet auction the property is displayed on the internet. The venue can be selected by the seller with a specific open and close date and time. Here, a bidder will enter their bid against other internet bidders or they may bid up to their pre determined high bid amount.

Live Internet Auction
The method of live internet auction is a successful one for both the buyers and sellers. Similar in characteristics with the internet auction, the main benefit of the property auction is that they allow for a qualified bidder who has researched the property already, to participate in the live event. In this type of property auctions, the bidders compete with the bidders who are present at the auction site.