Auction’s types and differencesOverviewAuction is an event in which various properties or goods are put for sale. Buyer who bid athighest rate will be the winner and can get the selected property. It is mainly a public event,where buyers build a sequence of bids and buy a particular property or item for the high value. Inthe entire process of public sale, buyer is the one and only decision making authority to decidethe price of a property or object, rather than the seller. It is totally in their hand to make adecision about the price they would like to pay for a particular property.In a public sale, bid is a proof of an officially authorized contract. The buyers are agreed andliable to pay the amount that they have proposed to get a property or an item. If the auction heldfor a high profile deal, then bidders are supposed to pay a deposit in legal accounts or provideevidence that they have the capacity to pay the amount for chosen items.There are different categories of Property auctions taking place all over the world. Let us havea look on their various types. Followings are some of the common types of public sale:English auctionThis comes under basic type of public sale in which people will be able to see the properties andgoods, and then only bidding process takes place. Buyers gradually increase the price of theirproposal and keep on raise it, until everybody gives up. The person who bids at highest amountis the winner of the contract. Auctioneer is a person who handles a sale, maintains documents ofthe on going bid and selects the winner. Occasionally, the seller will fix a smallest amount for aparticular item and auctioneer cannot trade that item below the quoted price.
Dutch auctionThis type is somewhat different from the former one, because in this an auctioneer quote theprice for a particular item and then step by step lowers the price. It will also take place in publicarea where people will start negotiating and shortly come to a decision about the quoted amountwhich is appropriate for the particular item. This type of Dutch auction can be used by seller inorder to sell huge quantities of identical goods to the public.For example, if you are a seller and want to trade a huge quantity of hay, then you can chooseDutch auction; so that once a price is quoted you can sell it to the people for the same price.Silent auctionThis type of sale also will take place publicly where the bidders will offer their contract in asealed format. All the sealed bids will be unwrap at the same time and the buyer who bids at thehighest price wins the contract.Source: Property Auctions