What is an absolute auction?

Absolute auction in which an individual or company providing the highest offer by the winner and recipient of the auctioned item, after successful delivery of payment to the seller. Absolute auction usually does not have a reserve price that it must be met, which means that none of the submitted offers must be above a certain amount to qualify. This is unlike other types of auctions in which the reserve price or the seller has the possibility to not cope this highest offer and instead remains in the item.

There are a number of different situations in which an absolute auction can occur. One of the more common is to deal with the sale of closed assets. In some jurisdictions, owners of confiscated properties choose this type of auction as a means that try to sell the property as soon as possible. By deciding to not specify a reserve or minimum price with which the applicants must meet in order to have a chance to win support, the seller increases the chances of at least obtaining some property lossesearlier than later. Institutions that hold titles on excluded properties sometimes use this method when the property is free for a longer period of time and maintenance costs become less cost -effective in relation to the actual value of the property itself.

Absolute auction strategy can also be used with other types of auctions, usually if the owner is focused on selling items without expecting the minimum amount for these items. This approach can be used as a means of selling assets associated with property such as jewelry or works of art. The intention is usually to destroy items quickly and generate any revenue can be realized, and at the same time allow the former owner to prevent additional costs related to these assets such as storage fees such as warehouse storage fees or Item insurance costs.

Even online auction pagesThey can be structured to allow absolute auction. This applies to websites that do not require the seller to determine any type of minimum or reserve price that must be met. In the case of this, the very low offer will be enough to win the item, even if there are no other candidates. As with public auction houses that allow clients to go with a reserve price for each auction or issue a minimum offer request, online auction pages are likely to charge the seller a fee, usually based on the winning offer.