[Archive]

Posted By: Peck

Corey . . Your thoughts about the true value of the strip are correct. Unless we hear from some actual bidders with their bid levels the final auction price means nothing. It is standard practice for the auction house to bid the reserve to protect the seller. A reserve auction only takes one bidder to reach the reserve or sale price. Another bidder that may factor in getting close to the reserve price is "friend of the reserve". The owner of the item with a reserve knows how far a bidder can go without winning the item. The auction house would have no part in this. With this said, it is possible to reach a price just below a reserve without a single real bidder. Again, the auction house would be completely legal and honest on their part. It's my guess that owners of items get caught trying to bid their reserve at times because auction houses will hammer an item sold below the set reserve. The strip for example. If the reserve was set at $275,000, it could have been hammered at the $252,723.54 because the juice carried it to $296,950.16 and that doesn't include profit from seller fees. A sale and a profit for the auction house and consigner. They would pay the consigner based on the $275,000 reserve price.

It's 99% certain to me that the last advance on the strip was the auction house bidding the reserve. If it were a real bidder then the house would have to come back again to protect the reserve.

Did anyone place a bid on this strip?

Can the auction house clarify why the "$50,000 Reserve" was used in the description in place of "Opening Bid"?

Leon . . I am:
Clarence T. (Peck) Dean III