: The auctioneer starts with a published minimum price (e.g., $100,000). All bids must exceed this number to be considered.
: The seller has a hidden "reserve" price. Even if you are the highest bidder, the seller can reject your offer if it doesn't hit their secret number. Pros & Cons: Is the Risk Worth It? buying a home at auction
Not every auction follows the same rules. Understanding the format is your first step toward a smart bid: : The auctioneer starts with a published minimum price (e