Real estate sales sometimes occur at an official auction. But sometimes a seller who does not take their house to auction may find themselves entertaining multiple bids for the house. In this case, the articles on real estate always seem to talk about managing a "bidding war". What is the difference between a bidding war and an auction? Are there regulatory issues that prevent a seller from converting their bidding war into a straight-up auction?
(For instance, a seller with multiple bids could simply notify all bidders of the current highest bid, set a minimum bidding increment, and see if anyone bids higher, and repeat until one bidder is left.)