In auction whats the 'Reserve' price
Asked on Jan 26 2016,
Selling in Norfolk |
The lowest price the seller will accept. If no bids reach this level the property will remain unsold.
Answered on Jan 27 2016,
When selling a property at auction, the seller will agree to a minimum price they accept to sell for, that price is known as the reserve price. The seller is only obligated to sell the property once the bid amount meets or exceeds the reserve price.
The reserve price is always below the market value of the property, typically by about 10% to 20%. So if a property is valued at £100,000 the reserve price would typically be set in the region of £80,000 to £90,000.
The reserve price is a confidential number, only known by the seller, their solicitor and the auctioneer. However, buyers will be advised of the “guide price” which is a number based on the reserve price.
Web reference: https://www.auction-link.org.uk/what-is-an-auction-reserv...
Answered on Feb 19 2017,
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