What are the reason and types for property auction
What are the reason and types for property auction?
The property auction is more favorable for people who like to buy and sell properties. Generally
auctions are done for lands, commercial property or any constructed or unconstructed places.
These are popular because this involves best deals and lesser formalities. These are considered
to be the easiest way of money transaction. Property auction includes a buyer, seller, lender
for loan purpose and of course a property auctioneer. The lender is not necessary if the buyer
have financial funds. Now with advert of technologies you can auction for properties from
Types of auctions:
You can find many types of auction for properties. Some of the popular auctions are Dutch
auction, absolute and reserve auction, English auction and silent auction.
In this auction the property auctioneer starts biding for the property in higher price and then it
is reduced by the bidder. This auction only takes places when a person needs to seller the
property urgently. It is one of the latest launched and popular auctions.
This is the most basic type of auction. Here the auction is held at the original place of property
which is for selling. The auctioneer starts the bidding with a fix amount set by the seller. The
property is sold to the person who bids highest amount.
One of the best auctions to be held is the silent auction. Here you will be given a paper,
envelope and a pen at the beginning of auction. The auctioneer will show you the property and
starting amount for the property. All you have to do is write an amount on the paper and seal it
in envelope. The person with the highest bid wins the property.
Absolute and reverse auction:
This is another method of selling houses in speed and fast manner. The absolute auction is
almost similar to English auction where the highest bidder is the winner. But in reverse auction
the auctioneer fixes a certain amount for the property and no one can bid above that amount.
So the merit of this auction is you get the property at very cheap rate.
Reasons for auctioning property:
The properties are auctioned for selling and buying purpose. Generally the people who are
need of money are seen at these auctions. Another reason is auctioning the foreclosure, bank
seized and government property. The government sells the property for developing purpose
where all the big industries people auction for it. Another reason behind this is repair and
damages of a property. If you are buying properties at auction then just check out the place
before bidding for it. You may get the property at cheap value but sometimes the expenses of
damages can be more than the buying rate.
Source: Property Auctions