Why it matters
Reserve prices protect owners in auctions. A seller who sets a reserve avoids selling a valuable name for a low price at the end of bidding. Some auctions show that the reserve is met without showing the number. A high reserve can discourage bidders and lead to a no-sale. Sellers should base the figure on comparable sales and what an end user may pay. Common mistake: setting no reserve to attract bids and then regretting a low final price. Platforms differ on how they handle reserves, so read the terms first.
Source: escrow.com
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