How do auction reserves work?

[oldjudge]

The answer, unfortunately, is that every auction house is different. Some, like Golden apparently, have active reserves. They bid against bidders until the lot reaches the reserve, at which point they stop bidding. If I am correct that means that the high bidder on any lot that has not reached the reserve is the auction house.
Some, like REA, have passive reserves. They do not bid at all; they just indicate that either the lot has or has not reached it’s reserve. If it reaches or exceeds the reserve it will sell. If it doesn’t it will not. The problem with REA’s reserve system is that they do not openly disclose the reserves on their site. HOWEVER, if a bidder calls REA will disclose the reserve.
Heritage, on the other hand, posts the reserve on their site. I think this is good and I wish REA would adopt this method.