In a reserve auction, the seller reserves the right to accept or reject the highest bid within a specified time period. A suggested opening bid may or may not be posted. The period may be anywhere from immediately following the auction to 72 hours after it ends. The owner predetermines the price at which the property will sell.
In a reserve auction,sellers are not obligated to accept a price other than one that is entirely acceptable by them. The main drawback to reserve auction is that many prospective buyers do not want to invest the time and expense of investigating a property when there is no guarantee they will receive that property, even if their bid is the highest.
If an auction is being held that is a reserve auction this information is given to the bidders in the auction literature and will be announce at the auction event.
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