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Why Major Enterprises, Inc.
Major is a dedicated team consisting of approximately 600 highly skilled real estate professionals. Among our agents we have attorneys, CPA's, appraisers, developers, marketing and project managers who together create a fully integrated auction program for our clients. Our comprehensive marketing and promotion program reaches not only many buyers, but also approximately 65,000 real estate agents in the State of Illinois. Through our databases, Major reaches Illinois Realtors by hard copy mailers sent out in sorts of 10,000 every two weeks, and email broadcasts on weekly bases to about 47,000 Realtors in the State of Illinois via the Internet. Our unique approach to auctions includes placing auction properties on the MLS (Multiple Listing Service) where those properties get maximum exposure and reach the greatest number of potential buyers. Attention to detail, meticulousness of preparation, and our proven strategies are the principal drivers that allow our clients to sell their real estate holdings for the maximum return.
To put our advantage to work for you, contact us by email:info@majoronline.com, call us at (800) 405-6992 ext. 3379, or fax 847-268-3444.
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Why Auctions
An auction is the process of buying and selling goods by offering them up for bid, taking bids, and then selling the item to the winning bidder. In economic theory, an auction is a method for determining the value of a commodity that has an undetermined or variable price.
Auctioning can be traced as far back as 500 B.C. Auctions can be with reserve or minimum, or without minimums, or absolute or no reserve. In reserve auctions, there is a minimum bid or reserve price; if the bidding does not reach the minimum, there is no sale. In absolute or no reserve auctions, the sale is guaranteed, with only the price left to be determined. In the context of auctions, a bid is an offered price.
According to ancient Greek scribes, the more generally accepted auction occurred first in Babylon in 500 B.C. During this period, auctions were held annually, and women were sold on the condition of marriage. It was considered illegal to allow a daughter to be sold outside the auction method. Women with ?beauty? engendered higher bidding, women without ?beauty? had to pay a dowry to be accepted into the auction, and thus the price would be negative.
During the Roman Empire, following military victory, Roman soldiers would often spear the ground to mark the location of spoils in which goods and property were seized. Roman business agents were said to have accompanied warriors into battle to help facilitate expected sales. The Romans also used the auction to liquidate their own property. For example, Marcus Aurelius is said to have auctioned off prized heirlooms and furniture, (an auction that, as legend has it, lasted over two months). The most legendary auction occurred in the year 193 A.D. when the entire Roman Empire was put on the auction block by the Praetorian Guard. On March 23rd, The Praetorian Guard first killed Pertinax the emperor, and then announced that the highest bidder could claim the entire Empire. Didius Julianus outbid everyone for the price of 6,250 drachmas per Guard, an act that initiated a brief civil war. Didius was then beheaded two months later when Septimus Severus conquered Rome.
During the 17th century, soon after the French Revolution, auctions came to be held in taverns and coffeehouses to sell art. Such auctions were held daily, and catalogs were printed to announce available items. Such Auction catalogs are frequently printed and distributed before auctions of rare or collectible items. Many of these catalogs may be very elaborate works themselves, with considerable details about the items being auctioned.
During the American civil war, goods seized by armies were sold at auction by the Colonel of the division. Thus, some of today's auctioneers in the U.S. carry the unofficial title of "colonel". Auctioneers are usually trained in the legal and practical aspects of conducting auctions. Some jurisdictions require auctioneers to be licensed and bonded.
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Primary Types of Auctions
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English auction: This is the type of auction commonly used by the English auction houses. Participants bid openly against one another, with each bid being higher than the previous bid. The auction ends when no participant is willing to bid further, or when a pre-determined "buy-out" price is reached, at which point the highest bidder pays the price. The seller may set a 'reserve' price and if the auction fails to have a bid equal to or higher than the reserve, the item remains unsold. A variant popular in the time of Samuel Pepys was 'auction by candle' in which the winning (highest) bid was the last one to be made before a small piece of lit candle died out. |
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Within this type of auction, there are several ways in which bidding can occur. First, is the absolute auction, which means that the item will be sold for the highest possible price, with no reserve. Second, is a reserve auction, which establishes a minimum bid or price for the item that will be accepted by the person who is selling the item. Third, you have Absentee bidding, which means that a bid is left with the auctioneer. Fourth, is internet bidding, where the bidding can be online and at the auction house at the same time. Fifth is Phone bids, which is nearly identical as absentee bidding, but an auction house employee does the bidding for the buyer. And last but not least is the sealed bidding process.
Chinese auction: A Chinese auction is a type of auction (actually a combination of auction and raffle) that is typically featured at charity or other fundraising events. Other groups have named it tricky tray or pick-a-prize to avoid any possible racial overtones.
Dutch auction: In the traditional Dutch auction the auctioneer begins with a high asking price, which is lowered until some participant is willing to accept the auctioneer's price, or a predetermined minimum price is reached. That winning participant pays the last announced price. The Dutch auction is named for its best known example, the Dutch tulip auctions. ("Dutch auction" is also sometimes used to describe online auctions where several identical goods are sold simultaneously to an equal number of high bidders. Economists call the latter auction a multi-unit English ascending auction.)
Sealed-bid first-price auction: Also known as Sealed High-Bid Auction or First-Price Sealed-Bid Auction (FPSB). In this type of auction all bidders simultaneously submit bids so that no bidder knows the bid of any other participant. The highest bidder pays the price they submitted.
Sealed-bid second-price auction: Also known as a Vickrey auction: This is identical to the sealed first-price auction, except the winning bidder pays the second highest bid rather than their own. This is very similar to the proxy bidding system used by eBay, where the winner pays the lesser of their actual bid and the second-highest bid plus one bidding increment.
All-pay auction: An auction in which all bidders must pay their bids regardless of whether they win the prize. The highest bidder wins the prize. The all-pay auction is often used to model lobbying (bids are political contributions), or other competitions.
Silent auction: This is often a variant of an English auction, where bids are written on a sheet of paper, and at the predetermined end of the auction, the highest listed bidder wins the prize. This auction variant is often used in charity events, and many items may be auctioned simultaneously. Participants submit bids normally on paper, near the item. Other variations of this type of auction may include sealed bids. The highest bidder pays the price he or she submitted.
Digital art auction: In this indefinitely long auction, designed for unreleased works that are trivially reproducible at zero cost (recordings, software, drug formulas), bidders openly submit their maximum bids (which may be adjusted or withdrawn at any time). The seller may review the bids and close with a price of their choosing at any time - the successful bidders that pay this price are those whose bid meets or exceeds it, and these are the only bidders who receive a copy of the item.
Open outcry auction: This type of auction can refer to any auction where the auction is conducted orally for people to hear. This type of auction also refers to what is used in stock exchanges and commodity exchanges, where trading occurs on a trading floor and traders may enter verbal bids and offers simultaneously. Transactions may take place simultaneously at different places in the trading pit or ring. This type of auction is being replaced by electronic trading platforms.
Unique bid auction: In this type of auction users post blind bids and are given a range of prices they can place a bid in, often a capped limit. The highest, or lowest, unique bid wins. For instance an auction is given a maximum bid of 10. If the top five bids are 10, 10, 9, 8, 8 then 9 would be the winner being the highest unique bid. This is a popular online type of auction.
Buy-out auction: This auction has a predetermined buy-out price in which the bidder can end the auction by accepting the buy-out price. The buy-out price is set by the seller. The bidder can choose to bid or use the buy-out option. If no bidder chooses to utilize the buy-out option, the auction ends with the highest bidder winning the auction.
Combinatorial auction: A combinatorial auction is an auction in which bidders can place bids on combinations of items, or ?packages,? rather than just individual items.
Absolute auction: Also known as an Unreserved Auction, No-reserve Auction or Auction Without Reserve, is an auction with no minimum bid amount, no set starting bid, no seller confirmation of the high bid price, and no buybacks of the property being offered by the seller of any agents of the seller. The highest bidder will purchase the property no matter the high bid price. This type of auction is designed to attract the maximum participation from the buying public as the seller has committed to convey their property to the highest bidder without limitation. It does offer buyers excellent opportunities from time to time, however. A 2003 Virginia statute defines an absolute auction as "an auction where at the time of the auction sale the real or personal property to be sold will pass to the highest bidder regardless of the amount of the highest and last bid."
Reverse auction: A type of auction in which the role of the buyer and seller are reversed, with the primary objective to drive purchase prices downward. In an ordinary auction (or also known as forward auction), buyers compete to obtain a good or service. In a reverse auction, sellers compete to obtain business.
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Common Uses for Auctions
| According to the National Auctioneers Association $257.2 Billion of goods and services sold at auction in 2006. The National Auctioneers Association expects residential auctions to balloon to 30 percent of all sales by 2010. |
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Auction Benefits
- Auction benefits both sellers and buyers
- Auction method allows for taking a survey of the market, because the property value is set by willing, ready, and able buyers at the time of auction
- Auction creates competition among buyers who drive the property value
- Auction allows to pre-qualify buyers, since in order to bid, they all have to bring substantial certified funds and enter into purchase contracts that are not contingent
- Auctions reduce the number of property showings that typically would inconvenience a seller if the property was sold via a traditional negotiated method over a long period of time
- Auction generates a demand and is especially effective in a slow real estate market
- Auction reduces the wait time to sell a property
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Benefits to the Seller
- Buyers come prepared to buy
- Quick disposal reduces long-term carrying costs, including taxes & maintenance
- Assurance that property will be sold at true market value
- Exposes the property to a large number of pre-qualified prospects
- Accelerates the sale
- Creates competition among buyers - auction price can exceed the price of a negotiated sale
- Requires potential buyers to pre-qualify for financing
- The seller knows exactly when the property will sell (the date of the auction)
- Eliminates numerous and unscheduled showings
- Takes the seller out of the negotiation process
- Ensures an aggressive marketing program that increases interest and visibility
- A faster sale allows the seller to reinvest the sales price sooner
- Seller controls the terms and conditions of the sale
- Property sells ?as is - where is? , with no warranties
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Benefits to the Buyer
- Smart investments are made as properties are usually purchased at fair market value through competitive bidding
- The buyer knows the seller is committed to sell
- In multi-property auctions the buyer sees many offerings in the same place at the same time
- Buyers determine the purchase price
- Auctions eliminate long negotiation periods
- Auctions reduce time to purchase property
- Purchasing and closing dates are known
- Buyers know they are competing fairly and on the same terms as all other buyers
- Buyers receive up front comprehensive information on property and can determine value in advance
- Buyers are more likely to receive smooth financing because the competitive bidding verifies the property value
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Benefits to the Realtor
- Generates a list of ready, qualified buyers
- Offers clients and customers new selling and purchasing options
- Increases revenue and market share
- Develops market niche
- Assurance that property will be sold at true market value
- Property is sold within a relatively short period of time
- Exposes the property to many potential purchasers
- Auctions bring people in to look at all listings, not just one auction listing
- Successful auctions result in referrals and return business
- Agents can earn commissions as referring agent/broker, cooperating agent/broker, or as the listing agent/broker
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Different Strategies
A real estate auction is an innovative and effective method of selling real estate. It is an intense, accelerated real estate marketing process that involves the public sale of any property through competitive bidding.
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Sold
Sold to the highest bidder! Major Enterprises, Inc. auctioneer raises the gavel on home sale by auction. Auction can help set a property apart from many others offered for sale. There may be many homes for sale in today's slowing market, but buyers come to Major's auctions. Auctions are contingency-free. The sale typically closes in 30 to 45 days. There is no negotiation back and forth with buyers. Sellers can appreciate having a specific date and time when they will sell the property.
Successful auctions, whether online or live, require well-informed buyers, strong marketing campaign, an adequate period to view the property, as well as, a full explanation of the sale terms. Major Enterprises, Inc. established in 1989 is among top ten brokerage houses in the State of Illinois with approximately 600 experienced real estate salespeople. At Major we speak approximately 44 languages. Our agents hold the following designations and certifications: C.C.I.M., C.I.P.S., C.R.B., C.R.S., G.R.I., A.B.R., R.E.C.S., and E.Pro. At Major we are revolutionizing the real estate industry. We offer to our salespeople Transaction Management System, Quality Control, 24/7 C.R.M. System, Virtual Office Solution, 365 Call Center to Schedule Schowings, VoIP Work Stations & Conference Rooms, Marketing Center, Internet eFarming System, Assistance from our Managing Brokers, Office Staff, Training & Support, and much more. At Major we are the real estate brokerage company of the future. We will get your property sold!
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Major Advantage
When you want to bring a property to market, there is no substitute for knowledge, experience and skill, which is what Major Enterprises, Inc. offers to its clients.
At Major we have always attracted some of the most knowledgeable and accomplished people in the industry. In fact, many of our agents hold broker licenses and hold advanced degrees in Law, Accounting, Marketing, Finance, or Economics. Our dedication and large market-share (Major is one of the largest real estate brokerages in the State of Illinois) combined with the industry expertise on regional, national, and international levels, can provide you with unparalleled team of real experts in real estate that will get the job done on your behave.
Among other things our industry accomplishments and honors include: |
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- Board Member/Director of the Illinois CCIM Chapter
- Treasurer of the Illinois CCIM Chapter
- Vice President of the Illinois CCIM Chapter
- President of the Illinois CCIM Chapter
- Board Member/Director of the Chicago Association of Realtors
- Graduate of the Illinois Association of Realtors (IAR) Leadership Development Academy
- Graduate of the CCIM - Jay W. Levine Leadership Development Academy
- Vice-Chairman of the International Committee of the Chicago Association of Realtors
- Chairman of the International Committee of the Chicago Association of Realtors
- Illinois Association of Realtors International Committee Member
- ?Golden R? member of the National Association of Realtors, Political Action Committee
- Licensed Real Estate CE (Continuing Education) Instructor in Illinois.
- Licensed Real Estate Pre-Licensing Instructor in Illinois
- Certified Broker Management Instructor in Illinois
- Owned and operated a title insurance company for six (6) years
- Licensed Real Estate Broker & Property Manager in Poland
- Supporting Member of the Warsaw Association of Realtors, Poland
- Affiliated Member of The Central European Real Estate Association's Network - CEREAN
- Completed training at The World Bank Headquarters in Washington, DC. On the subject of ?Housing Finance in Emerging Markets - Policy and Regulatory Challenges?
- Participated in organizing a secondary mortgage market in Poland as a consultant to and a liaison between Polish Housing and Urban Development and Fanny Mea
- Assisted in the development of the MLS system in Poland
To put our advantage to work for you, contact us by email info@majoronline.com, call us at (800) 405-6992 ext. 3379, or fax 847-268-3444.
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Auction Glossary
The following is a glossary of real estate auction terms developed by the National Association of Realtors - Real Estate Auction Committee, the National Auctioneers Association and the Auction Marketing Institute. While it is a real estate glossary, most of the terms apply to all types of auctions.
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AARE
(Accredited Auctioneer, Real Estate) |
The professional designation awarded by the Auction Marketing Institute, Inc. to qualified real estate auctioneers who meet the educational and experiential requirements of the Institute and who adhere to a strict code of ethics and standards of practice. |
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Absentee Bid |
A procedure which allows a bidder to participate in the bidding process without being physically present. Generally, a bidder submits an offer on an item prior to the auction. Absentee bids are usually handled under an established set of guidelines by the auctioneer or his representative. The particular rules and procedures of absentee bids are unique to each auction company. |
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Absentee Bidder |
A person (or entity) who does not attend the sale but submits, in advance, a written or oral bid that is the top price he or she will pay for a given property. |
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Absolute Auction |
An auction where the property is sold to the highest qualified bidder with no limiting conditions or amount. The seller may not bid personally or through an agent. Also known as an auction without reserve. |
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Accounting of Sale |
A report issued to the seller by the auctioneer detailing the financial aspects of the auction. |
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Advertising |
Non-personal, paid communication such as newspaper, radio, direct mail and TV directed toward the general public or, in some cases, specific prospective client groups to provide information about the time, place, contents, and arrangements of an auction. |
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Agent |
A person who acts for or in the place of another individual or entity by authority from them. |
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Appraisal |
The act or process of estimating value. |
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Apprentice Auctioneer |
An auctioneer who is in training, operating under the supervision of a licensed or experienced auctioneer. |
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"As Is" |
Selling the property without warranties as to the condition and/or the fitness of the property for a particular use. Buyers are solely responsible for examining and judging the property for their own protection. Otherwise known as "As Is, Where Is" and "In its Present Condition." |
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Auction |
A method of selling real estate in a public forum through open and competitive bidding. Also referred to as: public auction, auction sale or sale. |
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Auction Block |
The podium or raised platform where the auctioneer stands while conducting the auction. "Placing (an item) on the auction block" means to sell something at auction. |
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Auction Listing Agreement |
A contract executed by the auctioneer and the seller which authorizes the auctioneer to conduct the auction and sets out the terms of the agreement and the rights and responsibilities of each party. |
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Auction Marketer |
An individual who contracts with sellers for the auction method of marketing property. In the case of real property, he or she may not actually conduct the sale but is directly responsible for all aspects of marketing the property. |
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Auction Marketing |
The method of marketing real property utilizing the auction method of sale. |
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Auction Marketing Institute, Inc. |
Founded in 1976, this international association awards the professional designations CAI and AARE to properly qualified auctioneers through education, experience, and adherence to a strict code of ethics and standards of practice. Formerly known as the Certified Auctioneers Education Institute, Inc. |
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Auction Plan |
The plan for pre-auction, auction day and post auction activities. |
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Auction Price |
The price of a property obtained through the auction method of marketing. |
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Auction Subject to Confirmation |
(See "Reserve Auction.") |
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Auction Value |
The price which a particular property brings in open competitive bidding at public auction. |
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Auction With Reserve |
An auction in which the seller or his agent reserves the right to accept or decline any and all bids. A minimum acceptable price may or may not be disclosed and the seller reserves the right to accept or decline any bid within a specified time. |
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Auction Without Reserve |
See Absolute Auction. |
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Auctioneer |
The person whom the seller engages to direct, conduct, or be responsible for a sale by auction. This person may or may not actually call or cry the auction. |
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Auctioneer Subcontractor |
An auctioneer hired by the principal auctioneer. |
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Ballroom Auction |
An auction of one or more properties conducted in a meeting room facility. |
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Bank Letter of Credit |
A letter from a bank certifying that a named person is worthy of a given level of credit. Often requested from prospective bidders or buyers who are not paying with currency at auctions. |
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Bid |
A prospective buyer's indication or offer of a price he or she will pay to purchase property at auction. Bids are usually in standardized increments established by the auctioneer. |
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Bid Acknowledgment |
A form executed by the high bidder confirming and acknowledging the bidder's identify, the bid price and the description of the property. Also known as Memorandum. |
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Bid Assistants |
Individuals who are positioned throughout the attendees at the auction to assist the auctioneer, spot bidders and assist prospective bidders with information to help them in their buying decision. Also known as ringmen, bid consultants, bid spotters, or groundsmen. |
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Bid Caller |
The person who actually "calls," "cries or "auctions" the property at an auction, recognizing bidders and acknowledging the highest bidder. Commonly known as the auctioneer. |
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Bid Rigging |
The unlawful practice whereby two or more people agree not to bid against one another so as to deflate value. |
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Bidder Number |
The number issued to each person who registers at an auction. |
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Bidder Package |
The package of information and instructions pertaining to the property to be sold at an auction event obtained by prospective bidders at an auction. Sometimes called a bidder packet or due diligence package. |
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Bidder's Choice |
A method of sale whereby the successful high bidder wins the right to choose a property or properties from a grouping of similar or like-kind properties. After the high bidder's selection, the property is deleted from the group, and the second round of bidding commences, with the high bidder in round two choosing a property, which is then deleted from the group and so on, until all properties are sold. |
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Bookkeeper or Clerk |
The person who is responsible for the accounting and paperwork at an auction sale. |
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Broker Participation |
An arrangement for third-party brokers to register potential bidders for properties being sold at auction for a commission paid by the owner of the property or the auction firm. |
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Buyer's Broker |
A real estate broker who represents the buyer and, as the agent of the buyer, is normally paid for his/her services by the buyer. |
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Buyer's Premium |
An advertised percentage of the high bid or flat fee added to the high bid to determine the total contract price to be paid by the buyer. |
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CAI |
Certified Auctioneers Institute. The professional designation awarded to practicing auctioneers who meet the experiential, educational and ethical standards set by the Auction Marketing Institute, Inc. |
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Caravan Auctions |
A series of on site auctions advertised through a common promotional campaign. |
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Carrying Charges |
The costs involved in holding a property which is intended to produce income (either by sale or rent) but has not yet done so, i.e., insurance, taxes, maintenance, management. |
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Catalog or Brochure |
A publication advertising and describing the property(ies) available for sale at public auction, often including photographs, property descriptions, and the terms and conditions of the sale. |
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Caveat Emptor |
A Latin term meaning "let the buyer beware." A legal maxim stating that the buyer takes the risk regarding quality or condition of the property purchased, unless protected by warranty. |
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Certified Auctioneers Education Institute, Inc. |
Now known as the Auction Marketing Institute, Inc. See Auction Marketing Institute, Inc. |
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Clerk |
The person employed by the principal auctioneer or auction firm to record what is sold and to whom and for what price. |
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Collusion |
The unlawful practice whereby two or more people agree not to bid against one another so as to deflate value or when the auctioneer accepts a fictitious bid on behalf of the seller so as to manipulate or inflate the price of the property. |
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Commission |
The fee charged to the seller by the auctioneer for providing services, usually a percentage of the gross selling price of the property established by contract (the listing agreement) prior to the auction. |
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Conditions of Sale |
The legal terms that govern the conduct of an auction, including acceptable methods of payment, terms, buyer's premiums, possession, reserves and any other limiting factors of an auction. Usually included in published advertisements or announced by the auctioneer prior to the start of the auction. |
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Contract |
An agreement between two or more persons or entities which creates or modifies a legal relationship. |
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Cooperating Broker |
A real estate broker who registers a prospective buyer with the auction company, in accordance with the terms and conditions for that auction. The broker is paid a commission only if his prospect is the high bidder and successfully closes on the property. Also known as a participating broker. |
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Critical Path |
Sequence of key tasks to be done by auction contractor or other designated parties on specified dates, leading to desired goals. |
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Dual Agency |
The representation of opposing principals (buyers and seller) at the same time. |
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Due Diligence |
The process of gathering information about the condition and legal status of assets to be sold. |
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Estate Sale |
The sale of property left by a person at his or her death. An estate auction can involve the sale of personal and/or real property. |
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Groundsman |
See Bid Assistants. |
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Hammer Price |
Price established by the last bidder and acknowledged by the auctioneer before dropping the hammer or gavel. |
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Listing Agreement |
See Auction Listing Agreement. |
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Listing Broker |
A real estate broker who has a listing on a property and cooperates with the auction company by allowing the auction agreement to supersede his/her listing agreement. |
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Market Value |
The highest price in terms of money which a property will bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. |
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Memorandum |
Sometimes also referred to as a "Bidder Acknowledgment," or "Broker Acknowledgment," the memorandum is signed by those parties either on the auction floor or in the contract room. |
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Minimum Bid Auction |
An auction in which the auctioneer will accept bids at or above a disclosed price. The minimum price is always stated in the brochure and advertisements and is announced at the auctions. |
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Minimum Opening Bid |
The lowest acceptable amount at which the bidding must commence. |
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Multi-Property Auction |
A group of properties offered through a common promotional campaign. The properties to be auctioned may be owned by one seller or multiple sellers. |
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Multi-Seller Auction |
Properties owned by many sellers, offered through a common promotional campaign are auctioned in a single event. |
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National Auctioneers Association |
An association of individual auctioneers united to promote the mutual interests of its members; formulate and maintain ethical standards for the auction profession; promote the enactment of just and reasonable laws, ordinances and regulations affecting auction selling; make the public more aware of the advantages of auction selling; and generally improve the business conditions affecting the auction profession. |
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National Real Estate Auction Committee |
A national committee developed by the National Association of REALTOR®s in April, 1990 to provide education to members concerning real estate auctions, identify issues and monitor, review and analyze trends affecting the real estate auction industry. The Committee was sunset in November, 1999. All auction activities hosted by NAR now fall under the purview of the Auction Forum. |
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No-Sale Fee |
A charge paid by the owner of property offered at a reserve auction when the property does not sell. |
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Opening Bid |
The first bid offered by a bidder at an auction. |
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On-site Auction |
An auction conducted on the premises of the property being sold. |
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Participating Broker |
See Cooperating Broker. |
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Preview |
Specified date and time property is available for prospective buyer viewing and audits. Also known as Open House or Inspection. |
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Referring Broker |
A real estate broker who does not have a listing on a property, but refers the auction company to a potential seller for an auction. Usually earns a flat fee commission for referring product to an auction company. |
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Regroup |
A process used in real estate auctions where a bidder has the opportunity to combine several parcels of land previously selected by other bidders, thereby creating one larger parcel out of several smaller parcels. This process is often used in conjunction with bidder's choice. |
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Reserve |
The minimum price that a seller is willing to accept for a property to be sold at auction. Also known as the reserve price. |
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Reserve Auction |
An auction in which the seller reserves the right to establish a reserve price, to accept or decline any and all bids or to withdraw the property at any time prior to the announcement of the completion of the sale by the auctioneer. See also Auction With Reserve. |
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Sale Manager |
The person designated by the auction company who is responsible for organizing the details of an auction. Also known as project manager. |
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Sealed Bid |
A method of sale utilized where confidential bids are submitted to be opened at a predetermined place and time. Not a true auction in that it does not allow for reaction from the competitive market place. |
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Seller |
Entity that has legal possession, (ownership) of any interests, benefits or rights inherent to the real or personal property. |
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Subject to Confirmation |
See Reserve Auction. |
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Tax Sale |
Public sale of property at auction by governmental authority, due to nonpayment of property taxes. |
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Terms |
The period of time that an agreement is in effect. |
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Terms and Conditions |
The printed rules of the auction and certain aspects of the Purchase & Sale Agreement that are read and/or distributed to potential bidders prior to an auction sale. |
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Tie Bids |
When two or more bidders bid exactly the same amount at the same time and must be resolved by the auctioneer. |
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Trustee's Sale |
A sale at auction by a trustee. |
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Upset Price |
Commonly known as the reserve price. |
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Withdrawal |
Failure to reach the reserve price or insufficient bidding. |