Types of Auctions

There are many types of auctions, one of which will surely assist you in the sale of your residential or commercial property. Auction processes are infinite, but generally fall into one of the following categories two categories: Unreserved or With Reserve (or subject to the owner's acceptance).

The sale of real estate at public auction is no longer a straightforward task.  The successful auction company has recognized the function of the "auctioneer" as less important, and has focused on employing the techniques of the "auction process" as the vehicle to sell and maximize value of assets, in a fixed time period.  The formula for conducting a successful auction is no longer as simple as placing an ad and showing up prepared to sell on-site by public outcry. Through technology, modes of marketing have advanced beyond newspapers and brochures and the general public's perspective of an auction has and is shifting significantly.  In anticipation of these shifts, in addition to on-site public outcry (Live Bid) auctions, LWBC offers Alternative Sealed Bid auction services, Multi-Par auction services, Sealed Bid auction services and On-Line auction services.  Each auction strategy is founded on the principals of the traditional auction technique, but offers new conveniences to buyers and sellers.  The auction strategy (or strategies) we recommend to employ to sell your property will be based on the value range of the property, the condition of the property, the number of properties in your portfolio, the type and nature of the property to be offered, the location of the property, current market conditions, the buyer profile, the target market and finally, your goals. 

Whichever auction strategy we propose for your property, auction is the very best method of maximizing exposure and price, while minimizing time and carrying costs of no longer needed assets.

Today an auction could be a live or an electronic event where bidders, participants and spectators can observe open competition and act in their interest in the marketplace.  Through this process, Sellers have the opportunity to obtain not only a willing buyer, but the best of all willing buyers.

RESERVED vs. UNRESERVED

RESERVED

SUBJECT TO CONFIRMATION
Almost all of the real estate auctions conducted by LWBC are "Subject to Seller Confirmation".  The premise of a confirmation auction is that there is no minimum opening bid; however, the seller retains the right to refuse the best bid if it is unacceptable to him or her. 

PUBLISHED MINIMUM RESERVE
A published minimum reserve means that if the opening bid does not exceed the published reserve amount, the property is not sold.  It also means that if the minimum published bid for the property is exceeded by $1.00 or more, the property is sold.

UNPUBLISHED MINIMUM RESERVE
An unpublished minimum reserve is a property value that has been agreed upon between the Auctioneer and the Owner of the property that is not shared with the public or the high bidder until after the auction, or sometimes never at all.  If during the auction the high bidder exceeds the unpublished reserve amount, the Auctioneer forces the Vendor, under contract, to sell the property to the high bidder.  If the minimum bid is not achieved, the Seller is under no obligation to sell.

UNRESERVED

TYPES OF AUCTIONS

ALTERNATIVE SEALED BID
Typically we utilize the Alternative Sealed Bid process when dealing with higher valued commercial properties or for very unique, higher valued residential or commercial property.  The Alternative Sealed Bid process allows bidders to bid from the comfort of their home or office by fax, or from anywhere by phone.  The Alternative Sealed Bid auction process allows bidders more time to prepare finances and confirm partnership percentages before advancing bids.  The Alternative Sealed Bid process only allows the top 3 "initial bidders" to proceed to the live auction.  This method can also be altered and used by LWBC when selling unique or exceptional residential real estate or with real estate along with multiple packages of other significant assets, like a turn key business package.

MULTI-PAR
A LWBC multi-par auction is an event not to be missed!  LWBC utilizes a computerized multiple property software package that assists in maximizing the value of properties by offering them in infinite combinations.  The software package is real time interactive and video projected from our computer screen to an audience screen or displayed on dry erase boards.  LWBC can conduct many different types of "multiple property auctions" including residential and commercial units, multiple single family residential homes, waterfront lots, subdivision lots and parceled farm land.  The combination live bid and multi-par selling strategy ensures that bidders are able to bid on one or more combinations of properties simultaneously and creates competition for properties between multiple bidders with different buying and bidding goals.  A multi-par auction ensures maximum value for the property and gives each bidder the fairest opportunity to bid on the property, or package of properties the he or she desires the most.  Everyone is a winner at a LWBC multi-par auction!

SEALED BID
A LWBC sealed bid auction is used when dealing with complicated commercial real estate transactions where specific terms for the purchase are not all pre-determined by the Seller.  In this instance, the buyer has some room to negotiate the terms of the purchase of the property, and the seller is provided an opportunity to potentially receive a higher price, due to the terms of the deal being somewhat negotiable and in some instances, even conditional.