Benefits of Buying at an Auction
The buyer knows the seller is committed to sell.
Auction agreements obligate the seller to transfer title to the highest bidder in an absolute auction. Similarly, the auction agreement binds the seller to transfer title to the highest bidder who meets or exceeds the reserve price in a non-absolute offering. The buyer knows they are getting the property at a fair market price. The buyer feels comfortable with the purchase knowing that there is a contending bid just one increment under the purchase price