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Using a hidden reserve price in auctions.

I've been both a buyer and a seller in Audiogon auctions and have not only made excellent deals with terriffic people, but had a lot of fun doing it (thanks, Audiogon!).

I've always wondered, however, why some people bother to use a hidden reserve price in auctions. I suppose some potential buyers may enjoy the mystery of a hidden reserve price, but it tends to just put me off. If a seller has a reserve price, why not just have an auction with a minimum price and no reserve? Perhaps some sellers don't realize that you can do this.

How do you feel about this?
stevegolf1

Showing 1 response by sugarbrie

sugarbrie
3,854 posts
 
An item can be sold for less than the reserve. There is just no obligation to sell. The high bid below the reserve is the same as an offer that is less than the asking price on a classified. You can also negotiate some other price.

I have gotten some great deals on eBay and here because the seller decided to let me have it for my high bid that was less then the reserve, or still less than I would have offered had it been a classified.

The big auction housed Sotherbys, Christies, etc., hold reserve auctions all the time. If the seller won't sell the Picasso for less than $5 Million, then no sale. The reserve is secret. If they told you the reserve up front, what is the point? They might as well take it to an art dealer and take offers.

When I have used a reserve, it has always been set at the bare minimum I will accept as an offer, if it had been a classified. My reserves have always been exceeded. Probably some people have unrealistic expectations, and set them too high.

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