Auction glossaryReserve Price Meaning: The Seller's Hidden Minimum
A reserve price is the lowest amount a seller will accept for an auction lot, agreed with the auction house before the sale. It is usually kept secret. If bidding doesn't reach the reserve, the lot goes unsold; once the reserve is met, the lot sells to the highest bidder.
How does a reserve price work?
The reserve sits behind the bidding, not in front of it. Bidding can start well below it, and the listing shows only whether the reserve has been met. Unlike an opening bid, which everyone can see, the reserve figure usually stays private even after the sale.
What happens if the reserve isn't met?
Say a lot has a $500 reserve and bidding stops at $450. The lot doesn't sell, nobody owes anything, and the seller may relist it or take it back. If the high bid reaches $500, the lot sells to that bidder. A sale with no reserves at all is an absolute auction.
How does Auktia show reserve status?
On Auktia, the reserve is called the minimum price. Every item shows Minimum met, Minimum not met or No minimum, so you know whether the current high bid would win it. An item sells only if bidding meets the minimum price. Our guide to reserve prices covers strategy.
Questions people ask
Will the auction house tell me the reserve price?
Usually not. Houses keep the figure private so it doesn't anchor bidding, but they show whether it has been met.
Can a seller bid to reach their own reserve?
Not on Auktia. Bids placed by or for the seller are shill bidding, which Auktia prohibits; the reserve is how a seller protects a minimum.