You’ve been interested in attending a real estate auction but have been seeing absolute auction when doing your research. So what exactly is an absolute auction?
An absolute auction is just that, it is absolute. The property WILL sell to the highest bidder regardless of what that bid is. If there is one bid, the property will be sold. The sale is guaranteed to sell when the final bid is called and the auction is over.
If the market value of the property is $300,000, the property may bring more or less than that amount at an absolute auction. For example, if the final bid price is $279,000, the property sells/closes for that amount. If that final bid price is $375,000, the property sales/closes for that amount. Either way, the property will have a new owner.
One thing to note with an absolute auction is everyone in attendance is a serious bidder making tensions and the demand high for the property or house being auctioned.
All of our auctions are not absolute auctions. We also do what is called an auction with reserve