Auction Terminology

FORMATS:

• Single Seller/Single Stand-Alone Auction: This format is ideal for property that has a very specialized market or is high profile.
• Single Seller/Multiple Property Auction (Portfolio Sale): This format allows for an offering at a single location and time, or at regional locations at different times, for a single owner offering multiple properties.
• Multiple Seller/Multiple Property Auction: Best applied to land valued at $500,000 to $50 million. This format allows multiple sellers to pool their properties, creating a larger auction event. For a seller who has flexibility in terms of time, this format provides an economy of scale, allowing inclusion of smaller properties for attractive advertising contributions and brings together buyers for various properties to the same event in a synergistic way.

TYPES: Any of the above formats can be offered in one of the following types:

• Open-Out Cry: In this most productive of formats, bids are shouted out in person or by telephone.
• Sealed Bid Offerings: Bidders may submit bids on pre-approved contract forms and the seller can accept or reject the offer.
• Convertible: Converting a Sealed Bid sale to an Open-Outcry sale or vice versa, depending on market response.

OFFERING STRATEGIES: Any of the above formats and types can be presented with one of these offering strategies:

• With Reserve: A low "suggested opening bid" is published, but no definite price at which the seller guarantees a sale.
• Without Reserve/Absolute: There is no reserve or minimum bid, and the highest bid is accepted regardless of price.
• Without Reserve/Subject to a Minimum Bid: This is an absolute only if the bid is at or above the stated minimum.