An auction is the offer of purchase of property through a bidding process. The highest bidder takes the day. subject to a “Reserve Price.” 

An auction may also be requested by the actual owner (“Owner Auctions”), to forego the rigours of marketing, and where a reserve price may not apply, nor do the strict rules for court related matter. This is common for organizations in the disposal of assets, as few have a department to handle the demanding private sale processes, which may also take a considerable amount of time. 

“Reserve Auctions” rules may apply in Owner Auctions, in which the the highest bid becomes an offer, not the the sale price. Actual decision makers reserve the right to either accept or reject the winning offer in a given time frame. As the seller isn’t distressed, this type of auction doesn’t attract investors looking for a quick sale. I also may keep up buyers who may fee that it would waste their time.  

In this article, we refer to court related auctions

Link to commercial property auctions in Kenya

Link to our Builders Edge Unit offerings (Commercial Real Estate)