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Article: Getting the reserve price right is the key to realising the value of a property.(Advertising)
- Article from:
- Daily News (South Africa)
- Article date:
- March 28, 2008
CopyrightCOPYRIGHT 2008 Independent News & Media PLC. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The reserve price that is applied to a lot being sold at an auction is the price that the seller establishes as the minimum price that she is willing to accept.
The reserve price is a key element for determining if a property will be sold or not.
This price is usually not disclosed at the auction, but once the bidding reaches the reserve, the auction is made aware of this because the auctioneer informs the bidders that the item is on the market or a similar expression is used. From this point the property will be sold as any offer is now over the reserve. If the reserve price is set at a point that is a true reflection of the value that the market will ...