What is the difference between an "Absolute Auction" and a "Reserve Auction" 

An Absolute Auction in Maryland is one where the property will be sold to the highest bidder regardless of price. This means if someone bids, the Auctioneer MUST sell the property.  A reserve auction is one in which the seller reserves the right to confirm the sale.  A reserve price is usually specified by the seller before the sale, but can be lowered if the seller determines that the bidding on sale day represents the market price.  (It usually does).  We will often announce the reserve price as a starting bid (Disclosed Reserve) and specify that the property WILL sell to the highest bidder above the reserve.  This method makes it almost as attractive to investors as an Absolute Auction.  An "Undisclosed Reserve" Auction leaves the reserve price a "mystery", but is an effective method under certain circumstances. Unless an Auction is specifically advertised as "Absolute", expect it to be an auction with reserve.

 So, how does an Auction differ from a typical sale from a Brokerage?

The traditional method of selling real estate in Maryland, Harford County, Baltimore County and surrounding areas has been around for a long time, and will be here for a long time to come.  It certainly has some advantages, but it also has many limitations.  As a seller you should investigate and consider both methods of selling before making a final decision.  The best candidates for Auction are properties in a "hot" market, and properties that are unique and not easily duplicated.  Properties in a sprawling subdivision with many like properties on the market are less likely to do well at Auction compared with water front, large tracts, or historic properties with unique qualities. But even in that sprawling subdivision, the property with the Auction sign will get the most attention!  In a market where "multiple offers" are common, who would not want to auction their property? In a market where some developers offer new lots or units by "lottery", the Auction Method is made to order. Finally, any property where the seller is motivated to quickly turn his property into cash is the right property to sell at auction. Again, traditional brokers set a price and come down to find the market while Auctioneers start the bidding low and allow for competitive bidding to find the market!