Facts About Absolute Auctions
Updated: 7 days ago
Are Absolute Auctions Risky?
NO, As long as you have a professional auctioneer conducting your auction.
Many people assume absolute auctions can be risky because it involves the sale of an item or property without a minimum or reserve price. This means that the item will be sold to the highest bidder regardless of the final price.
Selling a property regardless of price can be problematic if the seller has a particular financial target they need to meet or if they owe more on the item than it sells for at auction. A James R. Cash Auction professional will always advise if a property should or shouldn't be sold at absolute auction. We provide confidence and certainty, if we don't think a property will achieve the set target price - we advise selling with reserve!
In most cases, an absolute auction can actually be a good strategy for both the seller and the buyer. The seller is in the driver seat when having at absolute auction. It forces all potential buyers to show up and act!
For example, an absolute auction can generate a lot of interest and excitement around an item or property, which can lead to a higher final price than might have been obtained through a traditional auction with a reserve price. An absolute buyer benefits the buyer as they know a sale is guaranteed and they are not wasting time or merely just appraising a property. They know the property will be sold. Buyers and Sellers deserve absolute certainty when it comes time to buying or selling. There is no fairer way than at a James R Cash Auction!