A sealed bid auction is a type of auction where bidders submit their bids privately, without knowledge of others' offers. Each bidder independently provides a single, sealed bid, usually in a written or digital format, to the auctioneer before a specified deadline. Once all bids are received, the sealed bid auction results are opened simultaneously, and the highest bidder wins the item or property at the price they offered.
Sealed bid auctions encourage participants to submit their true value, as they cannot adjust their bids based on competitors' offers. Sealed bid auctions are commonly used for selling valuable assets, real estate, or in government procurement processes.