Why would a seller at an auction set their reserve price hidden?
Why is the reserve price hidden?
When a reserve is known, often nobody will put in the first bid. This happens even when the reserve is lower than the price at which similar items usually sell.
Should I reveal my reserve price?
If the reserve price is not met, the only way of communicating what it is to buyers is to simply tell them what it is. So this is my advice to people wishing to successfully sell on eBay; if you insist on placing a reserve price on an auction, write what the reserve price is in the auction description.
What does it mean when the reserve price is not met?
A reserve price is a minimum price that a seller would be willing to accept from a buyer. In an auction, the seller is not typically 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.
Do bidders see the reserve price?
A reserve price is the lowest price you’re willing to sell an item for. Bidders can’t see the reserve price, but they’ll see whether it has been met.
What is a hidden reserve in an auction?
According to eBay, A reserve price is a hidden minimum price—essentially, the lowest price you’re willing to accept for your item. If the listing ends without any bids that meet the reserve price, you aren’t required to sell the item.
Can the auctioneer disclose the reserve price?
The reserve price is set by the vendor and is usually the lowest price they are willing to accept. The reserve price is typically set just before the auction date and is confidential to you, the auctioneer and the vendor.
What does reserve disclosed mean?
By disclosing the reserve, it suggests to potential bidders that nothing is hidden or secretive about this auction — the message is “We’re telling you all we know.” Too, $25,000 would appear to be a very reasonable price for this car, so by disclosing that number, it will likely cause many inquires, as the bidders know …
Can buyers see the reserve price on eBay?
If the reserve price isn’t met, the item won’t be sold. Sellers can choose to add a reserve price when listing an item in an eBay auction. Unless they state their reserve price in the listing, you won’t know what it is until you either meet it or bid above it.
How do you bid on reserve items?
Sellers can choose to add a reserve price when listing an item in an eBay auction. Unless they state their reserve price in the listing, you won’t know what it is until you either meet it or bid above it. If you bid below the reserve price, you’ll see a ‘Reserve not met’ message.
What happens if reserve not met Opensea?
Reserve Prices
If you are doing a Sell to highest bidder auction you can set a Reserve Price. If you don’t receive any bids equal to or greater than your reserve price, the auction will end without a sale.
What is the seller’s reservation price for a good?
This price is always a numeric amount. Simply put, the reservation price is the lowest amount that a seller will accept for an agreement and the maximum amount a buyer will pay. This is also known as the “walk away” point. For example, imagine that you are selling the house you purchased 15 years ago at $500,000.
How is the reserve price set in an auction?
A reserve price is the minimum amount – or bid at auction – you would be happy to accept for your property. You usually set the reserve price in consultation with your real estate agent, and then inform the auctioneer. Otherwise, it is confidential and is not made public or shared with the bidders at auction.
What the vendor can choose to do if bidding doesn’t reach the reserve price?
When no bidding takes place, a vendor bid is made by the auctioneer and this can be all that is required to set the wheels into motion. In a situation where there was some bidding, but the vendor’s reserve price was not reached, the auction will pass in.
Are auction guide prices accurate?
Guide prices at SDL Auctions are as accurate as possible – this is because they are generated using a number of factors closely aligned with the value of the property. The guide price, however, should not be confused with a property valuation.
How much over the guide price should I offer?
Again, this depends on the market and how many buyers are interested in the property. But as a general rule, it’s considered acceptable to offer 5-10% lower than the asking price. It’s worth remembering that if your initial offer is refused, you can always come back with a better one.
Why are auction guide prices so low?
This explains why auction guide prices are so much less than they eventually sell for. They’re there to entice buyers and generate competition.
Is property cheaper at auction?
Houses sold at auction tend to achieve much higher prices now than they used to. They can sell for as little as 70% of their market value, but can sell for as much as 10% more than market value. The average is about 85-90%.
What happens if finance falls through after auction?
What if your auction finance pre-approval falls through after the auction? Remember, when you bid at an auction, you make an unconditional and legally binding agreement to complete the purchase. So, if for some reason your finance falls through, you’re still liable for the contract.
What is the difference between guide price and reserve price?
Difference Between Guide Price and Reserve Price — Simplified. Basically, think of the guide price as guiding potential buyers to be more interested, whereas reserve price is your firm price you are willing to settle the sale.