What Is An Absolute Auction?
Does "absolute" really mean "Selling To The Highest Bidder Regardless of Price?"
...What if someone only bids $10.00 on my house?
There are two types of auctions, Auctions with reserve and ABSOLUTE auctions.
All Auctions are conducted with a reserve unless stated otherwise. Absolute means the auction is without reserve. The property will be sold to the highest bidder regardless of price. There are NO Contingencies.
The property is sold to the highest bidder, regardless of the price.
Since a sale is guaranteed, buyer excitement and participation are heightened.
Selling Absolute Generates maximum response from the market place.
This means prospective bidders will take the auction more seriously and invest time into coming to the auction. Our Most Successful Auctions Are Absolute.
If there is a mortgage on the property you must obtain permission from the lender in order to sell absolute OR the seller must guarantee that funds are available if there is a deficit.
We find our absolute auctions have more bidders which generates higher selling prices.
We will never recommend an absolute auction unless we know it is in the sellers best interest to do so.
AUCTIONS WITH RESERVE
In general, every auction is conducted with a reserve unless stated,
"Absolute" or "With Out Reserve" ..Meaning the seller can reserve the right to accept or reject the final bid.
While most of our auctions are sold "Absolute" we do allow for some properties to be sold with reserve for several reasons. Such as If there is a high mortgage or a minimum dollar amount the sellers wish to obtain. Cash Auctions has been in the auction profession for over 40 years, we will only market and sell properties that we know will sell and be successful.
The main disadvantage of a Reserve Auction is that prospective buyers may not invest the time and expense of due diligence when there is no certainty they will be able to buy the property even if they are the highest bidder.
Bidders and Buyers come more prepared when they know the sale is guaranteed. It is easy to assume that a seller would be taking a big risk selling absolute; however, professionally conducted auctions that are professionally marketed and advertised will always achieve fair market value - IF NOT MORE - when sold at absolute auction.
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