Sometimes it’s this flagrant. The auction is advertised as absolute but it’s not. Why would an auctioneer do this? The word, “absolute” attracts attention, but the auctioneer and/or seller doesn’t truly want to sell absolute.
Rather, this auctioneer/seller wants to only sell if the price is sufficient. That’s not an absolute auction at all, and rather a “with reserve” auction. If you don’t know what an absolute auction is, here’s a good read: https://mikebrandlyauctioneer.wordpress.com/2015/11/27/genuine-intent-to-transfer-to-the-highest-bidder-regardless-of-price/.
What this kind of advertising does is suggest several things: (1) Absolute auctions aren’t necessarily. (2) This auctioneer cannot be trusted. (3) What else in this advertisement is false advertising? However, maybe this auctioneer is merely blissfully ignorant?
Some — in jest I assume — ask me if there’s research substantiating absolute auctions are better for the seller. We note that there is no question almost every auctioneer believes such (and has seen evidence supporting) in that we never see an absolute auction advertised as “with reserve” to maximize the bidder pool.
We do have some research, however, for those who claim to still be in disbelief — https://mikebrandlyauctioneer.wordpress.com/2021/07/27/which-is-better-for-the-seller-absolute-with-reserve/. If you are an auctioneer remaining in denial, go ahead and advertise your absolute auction as “with reserve” and check your own results.
Nonetheless, blatantly advertising a clearly “with reserve” auction as “absolute” or “without reserve” is a misrepresentation and a fraud on the public. Auctioneers can and should do better. Maybe required continuing education would assist in helping auctioneers do better?
A common misconception is that if an auctioneer works in a non-license state, then there are no laws to be followed. That is simply not true at all, and rather in non-license states, there is simply no license law, but many other laws to consider. https://mikebrandlyauctioneer.wordpress.com/2022/08/16/everything-isnt-a-license-law-issue/.
Mike Brandly, Auctioneer, CAI, CAS, AARE has been an auctioneer and certified appraiser for over 30 years. His company’s auctions are located at Mike Brandly, Auctioneer, Brandly Real Estate & Auction, and formerly at Goodwill Columbus Car Auction. He serves as Distinguished Faculty at Hondros College, Executive Director of The Ohio Auction School, and an Instructor at the National Auction Association’s Designation Academy and Western College of Auctioneering. He has served as faculty at the Certified Auctioneers Institute held at Indiana University and is approved by The Supreme Court of Ohio for attorney education.
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