Definitions

Many of the terms used at auction can be confusing and misleading. In line with our goal to provide a more understandable auction experience, we’ve defined some of the common terms you will see.

CASH

This does not mean that financing cannot be used at auction. In fact, most real estate auction transactions use a financier or lender. The intent of this term is to signify that the purchase offer cannot be contingent upon financing.

AS-IS

This does not always mean the property is in distress or needs maintenance - some of the most beautiful homes ever are sold at auction! Again, auction offers can not include contingencies, so this means that the property is being sold in its current condition. Buyers are still able to (and are encouraged to!) view and inspect the property prior to bidding; and sellers are still required to disclose any known major issues.

RESERVE

Sometimes referred to as “subject to seller confirmation,” meaning that seller has the right to require a minimum amount that must be met before the property will sell. In some auctions this amount is predetermined and/or publicized, and other times it might be confidential or a decision made during the auction.

ABSOLUTE

There is no minimum required amount for the property to sell, and therefore it will sell to the highest bidder at any amount. An absolute auction will end in a transaction - there is no option for the seller to refuse the sale.