What is an absolute auction?

An absolute auction is defined as a sale in which the property is sold to the highest bidder, regardless of the price. This means there are no minimum or reserve amounts that must be reached; the property goes to the highest bidder without any conditions tied to pricing. This format is designed to attract more bidders, as they know that they can potentially acquire the property even if their bid is lower than what might typically be required in other auction formats.

While the other options do touch on aspects of auction mechanics, they do not encapsulate the defining characteristic of an absolute auction. Disclosed reserve prices, the absence of a bidding time limit, and starting bid requirements pertain to different types of auction structures and conditions but do not specifically define an absolute auction where the commitment to sell to the highest bidder is the central feature.