Hey Zorro,
Low opening bid is simply that the item in question will open (start bidding at) at below market value.
No Reserve, just means that the item will sell for the hammer price. (highest bid)
So if your consigning something with an auctioneer, and don't want to get bent over, you put the reserve at the lease amount you will accept for the item. That way either it won't sell, or you'll get the least amount or more for the item.
If you have a $5000.00 dagger and put a $3500.00 reserve on it, the bidding might start out at $500.00 but until it meets the $3500.00 reserve or goes higher it won't sell. Without that reserve, the owner of the item is at risk because if there is only one person at the auction that wants that item he may get it for $50.00, or $100.00 bucks.
A reserve just keeps the item from selling too inexpensively protecting the owner of the item, and the reserve is usually set by the owner of the item.
One more thing. If your the cosigner you also have to factor in the auctioneer's percentage. (payment)
Hope this helps
Rich
Last edited by Pitbull63; 01/04/2012 06:04 PM.
