First of all
you have to know that what is an auction, because then only you could know the
difference between these auctions.
Bank Auction
is a process which is running by banks, When borrower of any property or car or
any item didn’t give 3 consecutive banks EMI’s then bank send a notice to the
borrower to deposit the installations within 60 days and if he doesn’t give
installations then banks seize the property that he has owned.
Then Bank
gives advertisements of these properties, in newspapers or those websites which
have linked with banks. https://www.banknilami.com/
Is one of those websites which are linked with banks and also posts online the auction, bank auction, e-auction properties or vehicle auctions all over in
India.
Mainly auctions are of 4 types,
which are as follows –
Absolute Auction
Absolute Auction
· Minimum Bid Auction
· Reserve Auction
· Multi-Par Auction
I.
AbsoluteAuction - It is a classical type of auction in which sale is awarded to the
higher bidder. It doesn’t have reserve price which sets a minimum bid for the
auctioned item.
The difference between
absolute auction and confirmed auction is only that in this there is a reserve
price but in confirmation auction, The lender must approve the bid in order to
complete the transaction. In real estate, if foreclosure is sold at a lender
confirmation auction, the highest bidder doesn't necessarily win.
II.
Minimum Bid Auction – In Minimum Bid Auction,
the auction begins with a minimum price bid that the seller willing to accept.
This auction is published in newspaper advertisements, Websites (https://www.banknilami.com/) and also
announced at the auction. A minimum bid is a very good way to a seller to ensure they will be compensated with an amount they
consider to be acceptable.
III.
Reserve Auction – In this auction, a seller
comes up with an ideal price which he doesn’t disclose by which if the reserve
price doesn’t meet then the seller has the opportunity to reject the highest bid.
But the biggest disadvantage is for bidders, as there is no guarantee that they
will take the item or not.
IV.
Multi-par Auction – Multi-par Auction is where
the property can be auctioned as a whole or in tracts. This brings more buyers
because tracts are affordable and as many people can’t afford a $4,00,000 Farm
but can afford a $4,000 slice of it.
