What does reserve mean in an auction?
A reserve price is a minimum price a seller is willing to accept from a buyer. In an auction, the seller is not required to disclose the reserve price to potential buyers. If the reserve price is not met, the seller is not required to sell the item, even to the highest bidder.
What does reserve not to exceed mean at auction?
The reserve price will not be disclosed and is set between the seller and the auctioneer. The term “reserve not to exceed” is used to indicate that the reserve price is not higher than the amount displayed, therefore, allowing bidders to acquire the property at this price if they are the successful bidder.
What happens if reserve is not met on auction com?
If the Reserve is not met, the Seller has several options, including: Declining all bids and re-auctioning the property. Selling the property to the highest bidder. These offers are considered “Subject to Seller Approval.”
How does an auction reserve work?
What is an Auction Reserve? An auction reserve is the minimum price the seller is willing to accept for an item. In this type of auction, the seller is only obligated to sell the item if the bid amount meets or exceeds his or her reserve price.
What is the difference between an auction with reserve and an auction without reserve?
A no-reserve auction (NR), also known as an absolute auction, is an auction in which the item for sale will be sold regardless of price. This contrasts with a reserve auction, where the item for sale may not be sold if the final bid is not high enough to satisfy the seller. …
Do houses sell cheaper at auction?
There is no procedure at an auction for determining the highest price a buyer will pay. Only the highest price of the losing buyers may be known because they stop bidding once they reach their limit. … Most buyers at auction buy for less than their limit which means most sellers at auction under-sell their homes.
Why are properties sold at auction?
Auctions allow you to take advantage of a much more open and transparent buying process. On auction day you can see the other bidders in the room and have the reassurance that you will only pay one increment higher than the under bidder.
What is an undisclosed reserve price?
Each property has an “undisclosed” Reserve Price, this is the minimum amount that you agree that you are willing to accept for your property. … If the Reserve Price has been met when the auction ends, or you accept a bid to end the auction early, a sale will then be agreed.
What happens if you are the highest bidder but the reserve isn’t met?
If the listing ends without any bids that meet the reserve price, you aren’t required to sell the item. … The highest bidder will win the item. If the bidding does not reach $150 (the reserve price), the item won’t sell, and the seller isn’t required to honor any bids below the reserve.
Is the reserve price the same as buy it now?
On eBay, a reserve price is the minimum price the seller will take for an item, while a Buy It Now price is a set price you can buy an item for. A listing with a Buy It Now option does not mean that the bidding has a reserve price, though the two features can be used together in one listing.
Do you have to pay reserve fee if item doesn’t sell?
The insertion fee and all listing upgrade fees, including the Reserve fee, are charged to your invoice at the time that the listing goes live, and they are nonrefundable. Most sellers avoid this by just starting the bidding at the lowest price they’d be willing to sell for.
What is the difference between starting bid and reserve?
When you post an auction listing, you can set a Starting Bid and/or a Reserve Price. A Starting Bid is the least amount a bidder is allowed to bid in an auction, and is the price at which the bidding starts. A Reserve Price is the least amount you are willing to sell the item for. …
What does it mean when an auctioneer says I’m out?
5. I’m out: How the auctioneer lets bidders know that the an absentee bid has been maxed out. 6. In the book: Another way the auctioneer may refer to an absentee, commission or written bid.