An Auction can be absolute or the sellers can have a set minimum selling price or reserve price (non absolute).

According to the auction company, National Auction Group, there will be 30 units that are absolute, meaning no minimum reserve price.

Usually, an absolute sale will draw more participants because buyers are thinking they will get a steal. The risk for the seller is that the crowd is small and the buyers really do get a steal. On the flip side, if there is a good turn out, the seller has good potential of getting a little more.

It is important to know the comparable values and also what the auctioneers premium is so that you don’t make the mistake of over paying. The beauty to sellers at auctions is that mob mentality and excitement will get someone to pay more. Those that are wise will go to an auction knowing that they “may” get a deal, but that they are also well informed on where to stop bidding. For an idea of comparable values and auction company premium, contact Des (see above) and he will be glad to give you the info and get you registered.

If you don’t get a bargain at the auction, then you will have some good recent comparable values to substantiate offers on other similar units that are not being auctioned. The auction process is the ultimate price discovery mechanism and the results will be beneficial in rediscovering what real values are following the environment we have been in for the last few years.