How is a real estate auction typically conducted?

A real estate auction is typically conducted as a public sale where properties are sold to the highest bidder. This process involves open bidding, where interested parties publicly place bids on a property, and the highest bid at the end of the auction secures the purchase. The public nature of the auction invites a competitive atmosphere, which can drive up the final sale price as multiple bidders attempt to outbid each other. This method is often preferred by sellers looking to leverage competitive interest in their properties, especially in desirable markets.

In contrast, the other options describe different types of sale processes. A private arrangement involves negotiations between the seller and a specific buyer without public bidding. A sealed-bid process requires buyers to submit their offers confidentially, which is not characteristic of the open bidding approach in an auction. An online auction does resemble a traditional auction's competitive bidding element but is limited to a specific platform and typically has a time constraint, which is more specific than the general public auction format.