What characterizes an "absolute auction"?

An "absolute auction" is characterized by the property being sold to the highest bidder without any reserve price. This means that the item or property will be sold regardless of its final bid amount, and there is no minimum price that must be reached for the sale to occur. The absence of a reserve price encourages bidders to bid their true value, as they know the item will be sold to the highest offer, fostering a competitive atmosphere that can drive the price higher.

In the context of auction practices, this format is attractive to buyers because it guarantees that they have a chance to purchase the property, whereas other auction types might not result in a sale if the bidding does not reach a set amount. For instance, in a reserve auction, the seller can choose not to sell if the bids do not meet their expectations, which can deter potential bidders who are uncertain about the outcome.