A Multi-Parcel Auction is the sale of Real Estate offered in two
or more tracts of land. For purposes of explanation:
|
100 Acres Offered In Five
Tracts |
- Tract #1 5 Acres
- Tract #2 10 Acres
- Tract #3 10 Acres
- Tract #4 25 Acres
- Tract #5 50 Acres
|
|
The bidding will usually open to offer the tracts individually
first:
|
Bid Board (Individual Tracts) |
| Tract Number |
Bidder Number |
Bid Amount |
| 1 |
100 |
$ 5,000 |
| 2 |
200 |
$ 10,000 |
| 3 |
300 |
$ 10,000 |
| 4 |
400 |
$ 25,000 |
| 5 |
500 |
$ 50,000 |
| |
Total |
$ 100,000 |
|
Following the offering of individual tracts, the auctioneer will
begin taking bids for any combinations. Example: $26,000 will
tie Tracts 1, 2 & 3 together and pull them away from the
individual bidders for their respective tracts, because the bid
is higher than the individual bids totaling $25,000. See bid
board below.
|
Bid Board (Combinations) |
| Combinations |
Bidder |
Bid Amount |
| 1-2-3 |
600 |
$ 26,000 |
|
Bidders 100, 200 & 300 are “out”, because of a successful
combination by Bidder 600. But this leaves Bidders 400 & 500
still in a winning position on their respective tracts. What is
of importance is the bid for Combination 1-2-3 at $26,000 plus
the individual bids of $25,000 and $50,000 for Tracts 4 & 5
total out to be $101,000…beating out the total of $100,000 for
all of the Individual bids of $100,000.
But keep in mind, Bidders 100, 200 & 300 are not necessarily
finished bidding. There is only a $2,000 difference from a
change in the bid board and those who would be in a winning
position. A $2,000 increase from either one of them on their
respective tract will put all of the individual bidders back
into a winning position. This process will take place until all
bids are exhausted and the auctioneer declares the property
sold.
A great deal of patience may be required to conduct this type of
real estate auction, but it assures the Seller that he or she
has been given the greatest opportunity to receive the maximum
dollar through competitive bidding for his or her property. It
also ensures the individual tract Bidders an opportunity to
compete against those who want the property in its entirety.
|
