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The reserve price is a price that you set and inform the auctioneer. The auction will not be successful unless the bidders have given bids that are higher than the reserve price. Hence, it is important that you set a reasonable reserve price taking into consideration that if it is too low, you may not be getting the right price for the property, and that if it is too high, your efforts in advertising the property for sale at auction could be wasted.
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