Auctioneer Practice Exam 2025 - Free Auctioneer Practice Questions and Study Guide

Question: 1 / 400

What does the term "reserve price" refer to in an auction?

The starting price for bidding

The minimum price a seller is willing to accept for an item

The term "reserve price" specifically refers to the minimum price that a seller is willing to accept for an item during an auction. This means that if bids do not reach this specified amount, the item will not be sold. Setting a reserve price protects the seller from having to sell their item for less than its worth or below their desired value.

For instance, if a seller has a reserve price of $500 set for an antique vase, and the highest bid reaches only $400, the vase will not be sold. This mechanism ensures that sellers have a level of control over the final sale price, providing a safeguard against undervaluation. Optionally, it encourages bidders to bid higher, knowing there is a threshold the item will not be sold below. This understanding of reserve prices is crucial for both sellers and bidders to navigate the auction process effectively.

Get further explanation with Examzify DeepDiveBeta

The final price when the auctioneer's gavel falls

The price at which an item is listed before bidding starts

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy