An auction in which the subject property is sold to the highest bidder regardless of the amount of the winning bid. There is no reserve price.
What are the advantages of an absolute auction?
- The property is almost guaranteed to sell, thus relieving the seller of the expenses and/or lack of income associated with the property.
- You can feel confident of a closing date and not have to wait for a buyer.
- Additionally, because the property is going to sell at any price this attracts more bidders/buyers in an otherwise saturated market or depressed market.
- On average absolute auctions bring up to 12% more at auction than an auction with reserve of similar properties in a similar area.
The most effective auction is without a doubt an absolute auction.