A reserve price in an auction is the minimum price the seller is willing to accept. If bidding does not reach that amount, the seller usually is not required to sell the item.

Quick Scoop

Think of it as the seller’s safety net: it protects them from accidentally selling too low. In property auctions, it is often kept confidential between the seller and auctioneer, and if bids fall short, the item may remain unsold or be negotiated after the auction.

Simple Example

  • Reserve price: $1,000
  • Highest bid: $900
  • Result: the item usually does not sell because the reserve was not met.

Why it matters

  • It protects the seller from underselling.
  • It gives buyers a clear target to aim for.
  • It can influence bidding behavior because people know the item must reach a certain level before a sale is guaranteed.

If you want, I can also explain the difference between reserve price , starting bid , and guide price.