Vaughn Auctions will take the time to review your property and personal needs to ensure that you make the decision that best fits your goals. If you choose to auction your property we will discuss with you the 3 types of auction formats that are common in the industry. The majority of our real estate auctions will have a reserve amount. For all auctions the property is usually sold in “AS IS” condition, with no contingencies, except the seller is required to grant clear title to the property.
Reserve Auction – ideal for real estate and high value items (tractors, cars, boats)
As the seller, you reserve the right to accept or decline the final bid if the bid is not high enough to satisfy your outcome. At Vaughn Auctions, if a reserve is set, that amount is kept confidential between you, the seller, and the auctioneer. The advantage is that you will not be obliged to accept any price other than what the reserve was agreed upon within the auction contract. Once the reserve amount is met, then the property will be sold to the highest bidder. The drawback is that some buyers may not want to invest the money and time in researching a property that is subject to seller approval of the final bid. Therefore, you could have fewer buyers that are interested resulting in a lower price.
We will assist you, the seller, in determining a realistic reserve price for the property by reviewing comparable properties and creating a consumer market analysts.
Absolute Auction – commonly used for personal property auctions
An absolute auction is the quickest way to turn property into cash. NO RESERVE! An absolute auction is a guaranteed sale and the property will be sold to the Highest Bidder regardless of the bid amount.
Some sellers are afraid of absolute auctions because they fear the property will sell for a ridiculously low price. However, absolute auctions will typically draw more bidders and potentially a higher price. In the end, it is not uncommon for a property to bring what it is worth on the day of the auction.
Auction with a Minimum Bid
The auction is started with a minimum asking price that has been disclosed to the public. Once we receive a bid for the minimum amount, the auctioneer will ask for additional bids. The advantage to the seller is that it creates a safety net that does not exist in the absolute auction. The disadvantage is that the seller may be limited to only those buyers that are interested at the disclosed minimum bid. Therefore, it is difficult for the auctioneer to have the momentum and energy that is created when the bids start at a lower amount.