Reserve Price

What is the reserve price? 

The reserve price refers to the minimum amount that someone is willing to accept for an item or property they're selling at an auction.

When a property doesn’t reach the reserve price 

When bidding doesn't reach the reserve price, this is known as the property being ‘passed-in’. In this situation, the seller isn't obligated to sell the item. 

However, the seller and real estate agent would typically engage in private negotiations with the highest bidder. This instance could lead to the bidder increasing their offer, the seller agreeing to a lower price, or often a compromise being reached between the two parties. 

Is the reserve price of a property confidential? 

The reserve price is typically not disclosed to the public and is only revealed once it is reached at the auction.