For many people, the word “auction” still brings to mind distressed properties, courthouse steps, or liquidation sales. But according to Jay Cash, today’s real estate auction industry looks very different.
In a recent conversation on the Real Tea Podcast with host Angela Shields, Jay broke down how modern auctions work, why they’re becoming increasingly attractive to sellers, and how REALTORS® can use auctions as another tool to better serve clients.
Auctions Are About Strategy — Not Distress
One of the biggest misconceptions Jay addressed is the idea that auctions are only for foreclosures or distressed properties.
In reality, auctions are simply a method of marketing and selling real estate. Everything from residential homes and commercial buildings to farmland and luxury estates can be successfully sold at auction.
“An auction creates a level playing field,” Jay explained. “The seller controls the terms, conditions, and timeline while buyers compete transparently.”
Unlike traditional listings that can linger on the market for months with uncertain outcomes, auctions create urgency, focus buyer attention, and establish a clear deadline for action.
Understanding Reserve vs. Absolute Auctions
Jay also clarified one of the most misunderstood areas of the auction business: reserve and absolute auctions.
Reserve Auction
In a reserve auction, the seller establishes a minimum acceptable price. The property does not have to sell unless bidding reaches that threshold.
Absolute Auction
In an absolute auction, the property sells to the highest bidder regardless of price.
Jay noted that in Tennessee, auctions are presumed to be “with reserve” unless specifically advertised otherwise.
For sellers, understanding the difference is critical because it shapes both buyer psychology and overall auction strategy.
Why Auctions Can Benefit Sellers
According to Jay, auctions work especially well for:
- Unique properties
- Hard-to-appraise assets
- Estate properties
- Land tracts
- High-demand real estate where competition can be leveraged
Rather than waiting through extended negotiations, repair requests, and financing contingencies, auctions streamline the process and create a more defined path to closing.
The accelerated timeline can also reduce carrying costs and eliminate much of the uncertainty sellers experience in conventional transactions.
REALTORS® Shouldn’t Fear Auctions
One of the strongest themes from the conversation was Jay’s encouragement for REALTORS® to view auctioneers as partners — not competitors.
“A good REALTOR® can become the hero to their client by bringing in the right auction professional,” he explained.
Many auction companies work collaboratively with agents and offer referral opportunities when agents introduce auction-ready properties or buyers.
Jay emphasized that the best auctioneers value transparency, communication, and professional cooperation throughout the process.
Financing Is Common at Auctions
Another myth Jay challenged is the belief that auctions are “cash only.”
While auctions often require buyers to be financially prepared before bidding, many successful buyers still use traditional financing.
The key difference is that auction contracts are generally not contingent upon financing approval. Buyers are expected to have their financing, proof of funds, or lending arrangements secured ahead of time.
That preparation helps create more certainty for sellers and reduces the risk of deals falling apart weeks later.
Modern Auctions Reach Buyers Everywhere
Today’s auction industry has evolved far beyond standing on the courthouse steps with a fast-talking auctioneer.
Jay explained that most modern auctions now include:
- Professional digital marketing
- Social media advertising
- Email campaigns
- Online bidding platforms
- Simulcast events combining live and online bidding
This hybrid approach allows bidders from anywhere in the country — and sometimes the world — to participate in real time.
Most campaigns run approximately two to three weeks, using high-saturation marketing designed to concentrate buyer attention during a specific timeframe.
Advice for REALTORS® Exploring Auctions
For agents interested in learning more, Jay encouraged REALTORS® to:
- Interview auctioneers carefully
- Work with professionals active in state and national associations
- Prioritize transparency and communication
- Take continuing education courses on auction methods
Understanding auctions gives agents another option for helping clients solve unique real estate challenges — particularly when traditional listing methods may not be the best fit.
Final Thoughts
At its core, the modern auction process is about efficiency, transparency, and competition.
As Jay Cash explained on the Real Tea Podcast, auctions are no longer a niche solution reserved for distressed properties. They are a sophisticated sales strategy that can create urgency, simplify transactions, and produce strong outcomes for sellers and buyers alike.
For REALTORS®, understanding the auction process isn’t about replacing traditional real estate — it’s about expanding the toolbox and offering clients more solutions when the situation calls for it.
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