Reserve Prices Explained: Protecting Your Equity Without Limiting Competition

A reserve price is not a hopeful number; it is a documented financial decision. It should reflect the owner's real net-proceeds threshold, local comparables, market momentum, and the alternative costs of holding the asset longer.

When structured correctly, a reserve is confidential. Buyers know that the seller is serious, but they cannot simply anchor their offer to an advertised floor. This preserves tension in the bidding process.

Before any campaign begins, the owner should understand precisely how the reserve works, when it can be adjusted, and which terms—beyond price—will be considered in the final acceptance decision.