Questions About Reserves In Auctions
 

I couldn’t help but notice that in the recent REA Fall auction, at least 7 items did not meet their respective reserves and did not sell. This is higher than the last two REA major auctions (2 each).

I found this curious and have a few questions about reserves and reserves in the future.

1. Is there an easy way to see how many items in REA’s auction had a reserve? I know of at least 7 (because they didn’t sell) but I don’t know how many had one initially.
2. Are auction reserves set at the beginning of an auction or/can they be set later?
3. Do you expect to see more reserves on items auctioned off in 2024?

Reserves are usually not a good thing for auctions. Usually the seller is charged more for having a reserve. Many don't even bid on reserve auctions. Likely the consigner requested it. I don't think it is a growing trend.

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1. My understanding is that REA has a "hidden reserve" system, so you don't know what the reserve is, or even if there is a reserve. You find out when the auction is over that there was a reserve, and therefore sadly your big win doesn't count.

2. Some AHs disclose them earlier. Some wait until later. I suppose it's theoretically possible to start without one, and then to have a seller demand one part way into the auction, but I suspect that would be unusual.

3. I sure hope not. I typically stay away from items with a reserve. Simply because it almost always ends up being a big fat waste of my time, because the reserve is rarely met. And it's not because the item isn't worth the reserve. But just having the reserve tends to dissuade bidders from even trying. It's almost like a self-fulfilling prophecy. "Nobody bids there anymore: there's a bloody reserve."

In REA, I am pretty sure the fact of the reserve is disclosed upfront/immediately on day 1. The amount of the reserve is not shown, but you can call/email and they will tell you. Contrast with Heritage where you may not know there is a reserve until about 3 days before the auction ends and then the minimum bid will automatically jump to the reserve amount and it will say “reserve not met” with “**”.

I have won several items from REA that had reserves. Each time I knew it had a reserve and I asked, and was told, what it was. In all cases the reserve was met in its own.

Then there is the de facto reserve, where unless the card hits a certain price the consignor or a proxy buys it back.