Financial Planning and Luxury Real Estate Auctions: 2013

Luxury Home Auction Buzzwords Defined. - Luxury Real Estate Auction Blog

Today, let's review some buzz words and their definitions regarding the luxury real estate auction business.

Reserve: A reserve auction is one in which the seller decides to accept the high bid price or not.

Absolute: Selling to the highest bidder regardless of price.

Green Apple Auction: One in which the auction company advertises the sale as absolute or using the wording "selling without reserve" only to cancel the event or say that private negotiations are going on pre-or-post sale (which is smoke and mirrors for what is really going on- there weren't enough bidders or the prices were not high enough for the seller's expectations). Don't let this happen to you or your client.

Published Minimum Bid: The minimum bid is published in all marketing collateral. This is usually a significant discount from the highest asking or list price.
Sealed Bid: Interested bidders submit their bids in an anonymous manner with the highest bidder prevailing.

Outcry Event: An auction that is held live, onsite with an auctioneer "crying the bid".
Budget: Usually refers to the amount the seller is required to fund for the advertising and marketing of an auction.

Multi-Par: A bidding method which is used when multiple offerings, usually land, are offered in as an entirety and also in combinations sold by whichever method achieves the most money for the seller.

Questions? I am here to help. Reach out anytime.

Gary