What are the advantages to the buyer in an auction situation?

• Buyer knows the seller is fully committed to sell.
  Auction agreements obligate the seller to transfer title to the highest bidder in an absolute auction; the auction agreement obligates the seller to transfer the title to the highest bidder that meets or exceeds the reserve price in a non-absolute offering.
  
  
• The buyer knows he/she is 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.
  
  
• The buyer has negotiating power.
  The buyer can withdraw from the bidding at any time until the gavel falls.
  
  
• The buyer sees many offerings in the same place at the same time.
  He is able to make market comparisons quickly and easily.

Other Benefits:

• Buyers set their own purchase price.
  
  
• Auctions elimate sometimes long negotiating periods.
  
  
• Auctions reduce time to purchase property.
  
  
• Buyers do not have to worry about contingencies because purchasing and closing dates are known.
  
  
• Buyers know property owners sell at lowest price possible.
  
  
• Buyers can receive favorable financing.