What does an absolute auction mean?

An absolute auction is distinguished by the seller's commitment to sell the property or items regardless of the bid amount. This means that the owner does not retain the right to reject any bids, even if the final bid is lower than they anticipated or desired. In an absolute auction, bidders can feel confident that the item will sell to the highest bidder, enhancing the competitive nature of the bidding process.

In contrast, other auction types may allow sellers to reject bids or set reserves. This includes auctions where the owner can accept bids at any time or where items are subject to a minimum bid. These elements are absent in an absolute auction, making it a straightforward and binding selling event for all parties involved.