What is a Reserve Price?
A reserve price refers to the minimum price set by a seller for a piece of property. It is the lowest amount that the seller is willing to accept as a winning bid. If the highest bid in the auction does not meet or exceed the reserve price, the auction will fail and the property will not be sold at that time. The purpose of a reserve price is to ensure that the seller does not have to sell their item for less than they are willing to accept.
For example, if a reserve price is set for a piece of property at $10,000.00 and the highest bid received is for $3,000.00 the property will not be sold at that time and will be resold at a later date.
Will the land be sold if the Reserve Price is not met?
No, if the highest bid in an auction does not meet or exceed the reserve price, the land will not be sold at that time and will be resold at a later date.
What is Proxy bidding?
Proxy bidding is a feature commonly used in online auctions where bidders can set their maximum bid amount in advance. The proxy bidding system automatically places incremental bids on behalf of the bidder, up to the maximum amount they are willing to pay. This allows bidders to participate in auctions without constantly monitoring the bidding process. If another bidder places a lower bid, the proxy bidding system will incrementally increase the bidder’s bid until it reaches their maximum amount. Proxy bidding helps ensure that a bidder has the best chance of winning the item at the lowest possible price without actively participating in the bidding process.
What happens if proxy bidding is in place and the reserve price has not been met?
The proxy bidding system will continue to automatically place bids on behalf of bidders, incrementally increasing the bid until it reaches their maximum bid amount. However, even if the proxy bid is the highest in the auction, if it does not meet or exceed the reserve price, the auction will fail and the property will not be sold at that time. The property will be resold at a later date, giving potential buyers another opportunity to meet the reserve price.
What is the best way to place a bid at an auction when proxy bidding is enabled?
When proxy bidding is enabled for an auction, the best way to place a bid is to carefully consider your maximum bid amount. Determine the highest price you are willing to pay for the item and set that as your maximum bid. The proxy bidding system will automatically incrementally increase your bid as necessary, up to your maximum amount, to help you secure the item at the lowest possible price.
To place your bid, enter your maximum bid amount. Ensure that you have thoroughly reviewed the property’s description, condition, and any other associated details before placing your bid. It is also a good practice to monitor the bidding activity periodically to stay informed about the progress of the auction.
Remember, setting a realistic maximum bid amount is important. Consider the land’s value, your budget, and any competing bids. Setting a higher maximum bid increases your chances of winning.
Proxy bidding will raise your bid to the reserve price and then no further if you are the highest bidder. For example, if you enter a maximum bid of $10,000.00 and the reserve price is set at $3,000.00 and the bid price is currently at $1,000.00, the proxy bidding will set your bid at $3,000.00 to meet the reserve price, but go no higher unless you are outbid by another bidder. The system will then continue to bid on your behalf, if needed, until you reach $10,000.00.
What is a “buy it now” price and do all properties have one?
A “buy it now” price in an auction refers to a fixed price set by the seller at which a property can be immediately purchased without participating in the bidding process. It offers buyers the option to bypass the auction and secure the property immediately by agreeing to pay the predetermined price. Not all properties have a buy it now price, as it depends on the decision of the seller. If a “buy it now” option is not listed on the auction property page, then that option is not available.