Which participants are usually the most common in an absolute auction?

In an absolute auction, potential buyers are the most common participants because this type of auction guarantees that the item will be sold to the highest bidder without any minimum required bid or reserve price. This creates an inviting atmosphere for a wide range of potential buyers, as they know that they have a fair chance of acquiring the item regardless of its estimated value.

The competitive nature of an absolute auction attracts individuals who are genuinely interested in purchasing items, whether for personal use, investment purposes, or resale. The absence of a reserve price prompts bidders to participate actively, as they see the opportunity to secure a desirable item at potentially lower than market value. This dynamic encourages a diverse range of participants, making potential buyers the predominant group in these auctions.

While collectors, real estate agents, and investors can also be present in absolute auctions, their participation is typically more selective or related to specific interests in the items being auctioned. Collectors might be focused on specific types of items, while real estate agents may attend to represent clients rather than for personal bidding. Investors might show interest in potential profitable items but are not as universally prevalent as potential buyers willing to engage in an auction without restrictions.