The reserve price is a critical part of the auction process.

It is the price the vendor is prepared to accept at auction to sell the property.

The reserve price is usually not disclosed to purchasers at auction because it is for the market (the bidders at auction) to determine the ultimate price a purchaser is prepared to pay.

Usually, if the bidding does not reach the reserve price, the property will not be sold.

The reserve price is set by the vendor in consultation with a real estate agent and auctioneer.
It should reflect a reasonable assessment of the market value of the property in the current market climate, giving consideration also to the needs of the vendor.

It should not be considered either the "lowest" price or the "highest" price a seller will accept.

Setting a reserve price is a proper and legitimate way of setting a standard for the sale of the property at auction.

Standard terms apply to bidding at auction, so it is important that you understand the rules. Ask the selling agent about the rules that will apply at auction. He or she will be happy to tell you about them.

If you are concerned about bidding at auction, employ a specialist, who is a member of the REIT, to advise you or to bid on your behalf.