Definition of a Public Auction

A public auction is where an auction of specified merchandise or property is auctioned off to the highest bidder. The auction is made public by advertising and being open to the public. There are several different types of auctions that are available to the public to see and engage in. Most items up for auction, including property, are usually for sale because it has been repossessed or a loan needs to be cashed out on the property. Most public auctions are advertised through newspapers and signs.

Estate Auction

An estate auction is where property is sold to the highest bidder. An estate is generally more involved than a public real estate auction because it may include land, property, a home, outbuildings and items from inside of the home. Some estate auctions are held in the matter of a deceased home owner or someone who wants to get the most return on their property in little time. With an estate auction, merchandise such as antiques and furniture are sold separate from the house and land, but all property is generally sold at the end of the auction.

Farm Auction

A farm auction is generally held for two reasons, for either a bank repossession or selling the business. A farm auction generally brings in strong sales because it attracts a certain line of buyers---those in the farming industry. Implements can be very expensive brand new, farm auctions give buyers the chance to buy combines, tractors and other equipment for a fraction of the cost if it were new. In some cases, farm auctions include selling the entire farm, property and all of the farm equipment.

Vehicle Auction

Vehicle auctions are often held by banks or by government agencies. These vehicles have either been repossessed by the bank or government or were used for official government business. The vehicle auctions are generally held in a large scale where several are auctioned off at once. Everything from cars, trucks, police and emergency vehicles can be found at a public vehicle auction.

Rental Unit Auction

A rental unit auction is where personal items are auctioned off to the highest bidder. These items have been confiscated from rental units that remain unpaid or have been abandoned. The renter of the unit is notified of the auction and given an allotted amount of time to pay his or her bill before merchandise will be sold. This auction is often made public in newspapers or at the rental unit's main office.

Tax Auction

Tax auctions are held throughout the year and can involve a variety of property. These auctions proceed because a home or business owner has failed to pay taxes on his or her property. A home can be worth several thousands of dollars and be sold at a tax sale for just $5,000 of back taxes owed. Tax auctions can also take place on property that has unpaid taxes and also on small business property if no repayment options are in place.

Resources

• Public Auction Database