A Guide to Auctions
Selling your land at auction may be the best way to achieve the highest selling price, but determining which type of auction is best suited for your property is where our team excels.
Agri Affiliates professionals will analyze your goals, property, local market conditions, and the overall real estate market before offering recommendations.
Types of Auctions
To know if an auction is the best method to sell a property, several factors are evaluated. While selling your land at auction may be the best way to achieve the highest selling price, determining which type of auction is best suited for your property is where our team excels.
Absolute Auction
The property is sold to the highest bidder, regardless of the final price. This type of auction can stimulate competition between bidders from the very beginning of the auction. With this method, bidders will have assurance that the property will sell at auction.
Minimum Bid
Under a minimum bid auction, the seller safeguards the sale of their property by providing a minimum, or starting bid. The minimum bid amount is typically advertised.
Reserved Auction
The seller sets a reserve price, which is the minimum price a seller is willing to accept for the property to be sold. The reserve amount may or may not be advertised.
Sealed Bid
There are two types of sealed bid auctions. In a one-chance sealed bid, all bidders submit their offers to the auctioneer in a sealed envelope. All bids are held until a set date, at which time the highest offer is accepted or countered. The second type of sealed bid auction allows for the top several bids to be invited to a private auction to determine the buyer.
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Absolute Auction
The property is sold to the highest bidder, regardless of the final price. This type of auction can stimulate competition between bidders from the very beginning of the auction. With this method, bidders will have assurance that the property will sell at auction.
-
Minimum Bid
Under a minimum bid auction, the seller safeguards the sale of their property by providing a minimum, or starting bid. The minimum bid amount is typically advertised.
-
Reserved Auction
The seller sets a reserve price, which is the minimum price a seller is willing to accept for the property to be sold. The reserve amount may or may not be advertised.
-
Sealed Bid
There are two types of sealed bid auctions. In a one-chance sealed bid, all bidders submit their offers to the auctioneer in a sealed envelope. All bids are held until a set date, at which time the highest offer is accepted or countered. The second type of sealed bid auction allows for the top several bids to be invited to a private auction to determine the buyer.
Absolute Auction
The property is sold to the highest bidder, regardless of the final price. This type of auction can stimulate competition between bidders from the very beginning of the auction. With this method, bidders will have assurance that the property will sell at auction.
Online vs. In-Person Auctions
Online-only and in-person real estate auctions each have advantages. Factors such as the property’s characteristics, target audience, market conditions, and sellers’ preferences will be considered before recommending which auction method is best for your property.
Online-Only Auction:
With online-only auctions, the software acts as the auctioneer, and all bidders participate remotely. Agri Affiliates uses a cutting-edge, web-based bidding platform, eliminating the need for a physical presence. Buyers compete until the highest winning bid is placed, and no other bids are placed for five minutes. This is referred to as a “soft closing” and has become the industry standard method to conclude an online-only auction.
In-Person & Virtual “Hybrid” Auction:
This is the most common type of auction conducted by Agri Affiliates. A live, in-person auction is held and is live-streamed by our professional video production crew for a high-quality virtual experience to allow remote bidders to participate in real-time with in-person bidders. All live and internet bids are placed through the auctioneer in a seamless auction event. Internet bidders can actively participate, seeing and hearing their bids being placed, as well as the bids from the crowd during the live auction.
