THE AUCTION

An Environment of Excitement and Competition

A Kevin Wendt, CAI auction concentrates and demands the attention of all potential purchasers, creating an atmosphere of excitement and urgency. This atmosphere forces interested buyers to translate existing demand into competitive bids, allowing the seller to experience the highest possible price from all potential buyers—large and small.

The Perfect Marketplace: Open and Competitive Bidding

On auction day, our professional staff creates this environment of excitement to produce competitive bids. Unlike most auctions, where only the auctioneer communicates with the bidders, normally several bid assistants work personally with the registered bidders. These representatives assist and encourage bidders to bid their price.

The auction is broken down into three levels. First, all individual tracts are offered for bidding. All of these initial bids are posted along with the bidders, numbers. Once each tract has been bid on, the auction is open for bids on any combination of these tracts. Following this, it’s open, competitive bidding on tracts, combinations, and/or the total unit.

When a person bids on more than one tract, the bid must exceed the sum of the bids on every tract. For example, a bidder is interested in tracts I and 2. Tract 1 has a top bid of $100,000 and tract 2 stands at $150,000. In order for the bid to be posted, the bidder must bid more than $250,000. At some point, bidders are asked to bid on the entire property, which again creates an incentive to "up" the bids on individual tracts and various combinations thereof.

Buyers who initially intend to purchase the entire property, later in the auction, often enter the bidding on a combination of fewer units once the bidding on the whole surpasses their dollar limit. Throughout the auction, the bidding remains open on all tracts, combinations, and the entirety. During the auction, bidders are constantly negotiating ``up" and automatically gain confidence by seeing the value of the real estate confirmed by the other contending bidders. The property ultimately is sold in the manner resulting in the highest total sale price—individually, in combination, or as a total unit.