With various types of land auctions commonly employed across the United States, each has its own advantages and benefits depending on the landowner’s circumstances.
In this article, we’ll look at the three most common types of land auctions: live, online/simulcast, and sealed bid.
Live auctions are the most common type of auction, where potential buyers come together at a physical location for the auction. At a live auction, an auctioneer conducts the bidding and bidders physically raise their hands or use paddles to bid.
Live auctions are known for quick decision-making that fosters a competitive and dynamic atmosphere with real-time bidding. This type of auction has become very common in the Midwest.
Online auctions take place on the Internet, allowing prospective buyers to participate from anywhere in the world. Participants can bid in real-time from the comfort of their homes over the set course of the auction. Online auctions typically run longer than live auctions, since the bidders don’t need to be in the same place to bid.
The exception to this is the simulcast auction, which is a live auction that is streamed live on the internet. In this way, both live and online bidders can participate in the bidding process, combining the convenience of an online auction with the excitement of a live auction.
Sealed Bid Auctions
Sealed bid auctions are a more private and confidential affair, where bidders submit their bids in sealed envelopes by a specified deadline. The bids are then opened and the highest bidder wins. This type of auction only allows one bid per bidder, so they don’t typically inspire the same amount of competition as a live auction.
One of the main advantages of a sealed bid auction is the privacy it affords bidders. Prospective buyers can carefully consider their offer without the pressure of an immediate bidding war. These auctions are tailored for buyers and sellers who prefer a less flashy, more calculated approach to land acquisition.
Land auctions offer a diverse range of options for landowners looking to sell their property. If you’re ready to learn more about whether a land auction is right for you and your property, contact your local Land Professional today!