The reserve price is a confidential figure (between seller and auctioneer). This is the figure that the bidding must reach before the property is sold. If the bidding doesn't reach this figure, the property will go unsold at the auction but can still be sold after the auction.
Is the reserve price the same as the guide price in property auctions?
The reserve price is not the same as the property guide price, but the reserve price is normally within a set range of the guide price.
How are property auction reserve prices calculated?
The reserve price is calculated based off the guide price, which is taken from an independant appraisal. For a single figure guide price, the reserve cannot be more than 10% above the guide (for example, a property with a guide of £100,000+ could have a reserve up to £110,000). For a guide price range (£100,000 - £120,000), the reserve must sit within that range and not exceed to the top end figure stated.