Why Reserve Auctions Don’t Work as Well as Absolute

.....And Why Absolute Auctions Win Every Time

When it comes to selling real estate or valuable assets at auction, one of the most important decisions a seller will ever make is whether to offer the property “with reserve” or “absolute.” On the surface, a reserve auction may sound safer; after all, it gives the seller the right to reject bids that don’t meet a minimum price.

But after years of conducting hundreds of successful auctions across the Southeast, I can tell you with confidence: reserve auctions rarely create the same level of energy, urgency, or results as an absolute auction.

Don't confuse what I am saying. Yes, we do conduct auctions with reserve. But the best results come when its absolute.

The Problem With Reserve Auctions

A reserve auction tells buyers: “We want competition… but only on our terms.”

That single message can kill momentum before the auction even begins. Serious buyers want clarity and confidence — they don’t want to spend time inspecting a property, securing financing, or traveling to a sale only to learn the seller won’t let it go. When they sense hesitation, they hold back or don’t show up at all.

Here’s the reality:

• Fewer bidders means less competition.

• Less competition means lower energy.

• Lower energy means weaker final prices.

Even when a reserve is met, the sale often lacks the spark that makes an auction electric. Buyers want to compete, not negotiate against an invisible number.

Why Absolute Auctions Create Stronger Results

An absolute auction, on the other hand, says loud and clear: “This property is going to sell — be there, be ready.”

That message drives attendance, builds trust, and fuels bidding wars. Absolute auctions eliminate uncertainty and create a level playing field where every bidder knows the high bid takes it home. In my experience with James R. Cash Auctions, our strongest sales — from luxury estates to farmland to equipment — have come from absolute auctions. When the crowd believes the auction is real, they bid like it’s real.

But What About Seller Protection?

Many sellers are hesitant to go absolute because they fear “giving it away.” I understand that fear — but here’s the truth:

Reputable auctioneers build safety nets into the process to protect the seller:

• Targeted marketing: We only take absolute auctions when the market supports a strong turnout.

• Pre-sale pricing data: We analyze comps, interest levels, and buyer pools before committing to absolute.

• Auction agreements: Sellers approve all terms upfront and know exactly how the sale will be conducted.

• Strong bidder qualification: We pre-screen and ensure serious buyers are in the room (or online).

• Auction day strategy: When energy is right, competitive bidding drives value well past expectations.
  

The perceived risk of an absolute auction is often higher than the actual risk — and the upside is often far greater than sellers imagine. If we dont think a property is going to perform, we won't open it up for bidding.

Confidence Sells. Hesitation Doesn’t.

The best auctions are built on clarity, competition, and commitment. Absolute auctions embody all three. Reserve auctions often broadcast the opposite — and that’s why they underperform.

If you want to sell quickly, confidently, and for top market value, go absolute. As someone who has spent years helping families, farmers, and investors turn assets into opportunity, I can tell you — the best results come when the gavel is guaranteed to fall.

At James R. Cash Auctions, we don’t just list auctions… we build events that make buyers show up and compete. Absolute auctions create urgency. Urgency drives prices. And that’s why sellers who trust the process win.

Whether it’s a farm, estate, commercial building, or high-end home, I’ve seen absolute auctions outperform reserves time and time again. If you’re ready to sell with certainty, let’s talk. I’ll show you how the right auction strategy can deliver results you can take to the bank.

— Jay Cash, The Auctioneer

Auction Style. Proven Results. Real Sellers. Real Buyers. Real Bids.