A no-reserve auction (NR), also known as an absolute auction, is an auction in which the item for sale will be sold regardless of price.[1][2]
From the seller's perspective, advertising an auction as having no reserve price can be desirable (but risky) because it potentially attracts a greater number of bidders due to the possibility of a bargain.[1] If more bidders attend the auction, a higher price might ultimately be achieved because of heightened competition from bidders.[2] This contrasts with a reserve auction, where the item for sale may not be sold if the final bid is not high enough to satisfy the seller. In practice, an auction advertised as "absolute" or "no-reserve" may nonetheless still not sell to the highest bidder on the day, for example, if the seller withdraws the item from the auction or extends the auction period indefinitely,[3] although these practices may be restricted by law in some jurisdictions or under the terms of sale available from the auctioneer.
Notwithstanding that an auction is advertised to be with No Reserve, a starting price may be stipulated by the seller. Any bids that do not meet or exceed the starting price set by the Seller are deemed to be invalid, though are considered an offer to purchase until otherwise rejected or withdrawn (or the item is sold by way of auction).
Referencesedit
^ abFisher, Steven (2006), The Real Estate Investor's Handbook: The Complete Guide for the Individual Investor, Ocala, Florida: Atlantic Publishing Company, pp. 89–90, ISBN0-910627-69-X
^ abGood, Steven L.; Lynn, Paul A. (January 2007), , Commercial Investment Real Estate, CCIM Institute, archived from the original on 2010-10-31, retrieved 2009-06-25
reserve, auction, reserve, auction, also, known, absolute, auction, auction, which, item, sale, will, sold, regardless, price, from, seller, perspective, advertising, auction, having, reserve, price, desirable, risky, because, potentially, attracts, greater, n. A no reserve auction NR also known as an absolute auction is an auction in which the item for sale will be sold regardless of price 1 2 From the seller s perspective advertising an auction as having no reserve price can be desirable but risky because it potentially attracts a greater number of bidders due to the possibility of a bargain 1 If more bidders attend the auction a higher price might ultimately be achieved because of heightened competition from bidders 2 This contrasts with a reserve auction where the item for sale may not be sold if the final bid is not high enough to satisfy the seller In practice an auction advertised as absolute or no reserve may nonetheless still not sell to the highest bidder on the day for example if the seller withdraws the item from the auction or extends the auction period indefinitely 3 although these practices may be restricted by law in some jurisdictions or under the terms of sale available from the auctioneer Notwithstanding that an auction is advertised to be with No Reserve a starting price may be stipulated by the seller Any bids that do not meet or exceed the starting price set by the Seller are deemed to be invalid though are considered an offer to purchase until otherwise rejected or withdrawn or the item is sold by way of auction References edit a b Fisher Steven 2006 The Real Estate Investor s Handbook The Complete Guide for the Individual Investor Ocala Florida Atlantic Publishing Company pp 89 90 ISBN 0 910627 69 X a b Good Steven L Lynn Paul A January 2007 The eBay Effect Commercial Investment Real Estate CCIM Institute archived from the original on 2010 10 31 retrieved 2009 06 25 Leichman Laurence 1996 90 off real estate Ocala Florida Leichman Assoc Pubns pp 78 79 ISBN 0 9636867 7 1 nbsp This game theory article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title No reserve auction amp oldid 1157771262, wikipedia, wiki, book, books, library,
