If a person is ready to sell something they own, regardless of if it is property, a house, car, or something else, they have several options. Depending on the individual’s timeline and goals, it is possible to work with a professional to get the sale completed or to handle the entire process online.

Online auctions have become extremely popular in recent years. These can be hosted on an official auction site, social media, or another location. A seller does need auction software in some cases, but this can be found and used with ease. However, when it comes to auctions, there is another important consideration, too: if the auction will be private or public. Keep reading to learn more about each option.

Advantages of a Public Auction

Those who choose to go public with their auction are bound to see several benefits. For example, they can save both money and time because of the predetermined sale conditions. Also, there is a likelihood of a hot bidding war breaking out because of the competitiveness that some auctions create.

In many cases, bids that are emotionally fueled will go higher than those when people have time to sit around and think about the purchase. The closing of the auction is predetermined. This means that the marketing effort needed can be concentrated, which helps to drive costs down. Every potential buyer is aware, going into the auction, that they must be ready to bid or that they may miss out on something they want.

Advantages of a Private Auction

While public auctions have quite a few benefits to consider, private ones do, as well. With a private auction, the seller always remains in control. They can react to an offer by rejecting or accepting it. They also have the opportunity to make a counteroffer.

With private auctions, there is not as much pressure or stress involved with the bidding process. The seller will stay in control of all the marketing along with the closing schedule.

Another benefit offered by a private auction is that the public will not know how much interest in what is being sold. As a result, they may feel like they need to reach or bid quickly to have an opportunity to come out on top. This can help to increase bid amounts significantly in some situations.

Cons of Public vs. Private Auctions

With a public auction, the seller does not have control over what will happen. This means it is more of a high-risk process than a private auction. However, with private auctions, the timetable is usually undefined. The sale of something may occur quickly or it could stretch out weeks and months.

When it comes to a public auction, the seller can have a reserve or indicate a “no-sale” price but, with private auctions, the seller may not be able to get the highest dollar based on how much competition there is.

Which Auction Method to Use?

When it comes to choosing the right auction method, there are many factors to consider. Be sure to keep the information here in mind, which is going to help ensure the right decision about the type of auction to use is made. In some cases, working with a professional will help ensure the auction is successful.