North Carolina Auctioneer Practice Test 2025 – All-in-One Guide to Secure Your Auctioneer Success!

An "absolute auction" signifies that the item being auctioned will be sold to the highest bidder, regardless of the final bid amount. This means that there is no minimum bid or reserve price set for the auction; the seller has agreed to sell the item to the highest bidder without any conditions. Hence, if the bidding ends at a low amount, the item is still sold, granting bidders the confidence to bid without the concern that their efforts may go to waste if the final bid does not meet a certain threshold.

In this context, the assurance that there is no reserve means that all bids are valid, and the seller is committed to the auction's outcome. This type of auction typically generates excitement and competitive bidding, as participants know that any bid made could potentially win them the item, regardless of how low it may be compared to the seller's expectations.