The purpose of an auction is to sell a property quickly at the best market value.
The Reserve Price is an undisclosed figure agreed by the seller and the auctioneer. The property cannot be sold below the reserve price during the auction. If there are no bids above the reserve price, the property will be declared unsold.
The reserve price may be set later than the guide price or just before auction day to reflect the interest levels and feedback from potential buyers. Because of the legally binding nature of an auction, the reserve price serves to ensure that the seller gets the best value for their property.
The auctioneer will recommend a reserve price. However, the seller must decide on the right reserve price. If the reserve price is too high, it may limit potential bids and go unsold. Only the seller and the auctioneer knows the reserve price.
The reserve price cannot be above the market value.
Telephone 0800 009 6304 or send us an email to prepare an Auction Legal Pack for your property. There is a 50% reimbursement of the total fee.