Reserve: Real or Personal Property, Farm, Ranch, House, Cars

The minimum price that a seller is willing to accept for a property to be sold at auction. Also known as “reserve price”.

The reserve price is normally set in advance of the auction sale. This is a confidential number in most circumstances. The auctioneer may take bis lower than the reserve, however the sale enters into a sellers confirmation situation. If the price brings more than the reserve, generally the auctioneer has the authority to drop the hammer…in other word the property is sold…sold…sold… to the highest and best bidder that abides with the terms and conditions of sale.