What is the Difference?
What is a Reserve Auction?
What is an Absolute Auction?
An absolute auction, also known as “auction without reserve,’ do not have any limiting conditions or amount. The property will be sold to the highest qualified bidder.
Reserve Auctions vs. Absolute Auctions
In the United States, auctioneers tend to conduct reserve auctions more frequently than absolute auctions, particularly for real estate transactions. It isn’t uncommon, however, for auctioneers to commonly use the term absolute in conjunction with an amount (e.g. Absolute over $5,000). By indicating the amount, auctioneers are disclosing the seller’s reserve price and informing the public that the auction will convert from a reserve auction to an absolute auction once that reserve is met.