In a Reserve Price auction does seller see my highest bid ?

[dgb1951]

Hi all, 

Well I am biding on an auction that has a reserve, so just trying to get my head around what I may end up having to pay.

Seller has already indicated that if the reserve is not met by auction end, he will consider selling to highest bidder after some price negotation, by probably relisting item with a "Buy it now price" as agreed. 

Now so I am clear, if my Maximum bid in Reserve Price Auction does not meet the Reserve, does that value count as the base price for a Second chance offer or "buy it now" Price offer?

To clarify in point form per the following :-

1. Auction start price is $200, and assume the reserve is $1800

2. I am first and only bidder, so I bid $200,

3. Ebay Message indicates "reserve not met",

4. I bid twice more rasing my offer to $500, each time  Ebay Message still indicates "reserve not met",

5. I am still only bidder and Auction lists 3 bids and Price shows $200, with my ebay page saying  "Enter more than $500"

6. So now IF I am only bidder and auction ends, would the seller see only my bid of :-

A  $200

 or

B  $500

I ask  thisas  is if answer is B, then this I assume would be what the seller would set as the  $ value for  Offer to me.

Obviously I would only wish to pay $200.

Interested to know

any thoughts appreciated,

regards

David

[digital*ghost]

The seller won't know your highest bid - in an auction with a reserve, the bidding proceeds the same as any other auction, with the only difference being that if someone places a bid that meets the reserve, the price will automatically jump to the reserve price (bidding then proceeds in increments the same as before). 

The seller's options with the current auction is to end the auction early and sell to the current highest bidder at the current price, but if they relist they would only have the maximum price the item reached to base a BIN price on (unless they contacted bidders and asked), but even then, there would be nothing to obligate you to actually buy the relisted item. 

[digital*ghost]

I just thought I'd add... The only time a seller knows a bidders maximum is if another bidder has outbid them, as then the new price is based on the underbidder's maximum, and in that case (eg if the highest bidder doesn't go through with the sale),  a seller can send an underbidder a second chance offer which is priced at their maximum rather than what the price would have been if the winner hadn't bid, but again it's up to the buyer whether they accept the offer or not. 

[k1ooo-slr-sales]

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@dgb1951 wrote:

Hi all,  

Well I am biding on an auction that has a reserve, so just trying to get my head around what I may end up having to pay. 

Seller has already indicated that if the reserve is not met by auction end, he will consider selling to highest bidder after some price negotation, by probably relisting item with a "Buy it now price" as agreed. 

Now so I am clear, if my Maximum bid in Reserve Price Auction does not meet the Reserve, does that value count as the base price for a Second chance offer or "buy it now" Price offer? 

To clarify in point form per the following :- 

1. Auction start price is $200, and assume the reserve is $1800 

2. I am first and only bidder, so I bid $200, 

3. Ebay Message indicates "reserve not met",

4. I bid twice more rasing my offer to $500, each time  Ebay Message still indicates "reserve not met", 

5. I am still only bidder and Auction lists 3 bids and Price shows $200, with my ebay page saying  "Enter more than $500" 

6. So now IF I am only bidder and auction ends, would the seller see only my bid of :- 

A  $200

 or

B  $500 

I ask  thisas  is if answer is B, then this I assume would be what the seller would set as the  $ value for  Offer to me.

Obviously I would only wish to pay $200.

---

David, a couple of points.

"Now so I am clear, if my Maximum bid in Reserve Price Auction does not meet the Reserve, does that value count as the base price for a Second chance offer or "buy it now" Price offer?"

- a seller is under no obligation to make a second chance offer

- if a reserve price auction concludes without reaching the reserve then a seller is under no obligation to use any bids or prices from a previous listing as the basis for any subsequent relist.  In fact, they can increase the price!  In your example they can run another reserve price auction and start it at $800 if they want.

- even if the seller said in their description that they would negotiate if the reserve price is not met then they are under no obligation to do so if the biding only reaches a fraction of what they really want to get.

"Auction start price is $200, and assume the reserve is $1800"

- you must have some idea of what the item is worth if you assume the reserve is $1800

"Obviously I would only wish to pay $200"

- if you think the reserve is $1800 then do not hold your breath that you will have any chance to get it for just $200

My advice,

- if the item is relisted then bid a realistic price for it if you want any chance of getting it.

- If the seller contacts you to negotiate a price then negotiate in good faith and do not hold out for a $200 purchase.

- If it is relisted as a Buy-Now with best offer then do not waste the seller's time by offering much less than the real value for the item or else you may find yourself on the seller's BBL.

[jensmanchester-australia]

I just thought I'd add... The only time a seller knows a bidders maximum is if another bidder has outbid them, as then the new price is based on the underbidder's maximum, and in that case (eg if the highest bidder doesn't go through with the sale),  a seller can send an underbidder a second chance offer which is priced at their maximum rather than what the price would have been if the winner hadn't bid, but again it's up to the buyer whether they accept the offer or not.

DG - this has now changed as the winning bidders highest bid is now disclosed to the seller on the item won email sent to sellers after the auction has finished.

[davewil1964]

I'm glad you're around Sir Sales.

I would have just said something like why do you think you can get an item (car?) for $200 when you know it's worth $1800 and why do you think the seller would even entertain an offer of $200.

You're much smoother than me, but.

[digital*ghost]

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@jensmanchester wrote:

DG - this has now changed as the winning bidders highest bid is now disclosed to the seller on the item won email sent to sellers after the auction has finished.

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Oh... I had no idea (shows how often I run auctions  ). 

I wonder what the thought behind that was? I guess I can see getting an idea for maximum prices over time if a seller is running auctions for same or similar items. 

[*crikey*mate*]

My first thoughts are that it is a silly idea.

The other week I won an item for $30 less than my maximum bid.

How many sellers are now going to be tempted to not honour the contract becasuse they know they could have gotten nearly double?

even if they are honourable, imagine the how that would make the seller feel knowing how much they could have got iykwim

so yes, curious about the thinking that went into that idea....

Its akin to showing your hand in a game of cards!@

[amber-eyed-girl]

Have to agree.

as a buyer, do not want a seller to entertain the idea of being difficult over the price and not honouring the sale as is

as a seller, do not want to feel a little bit peeved if the max. was intensely fabulous

if I bid on an item at a bricks and mortar auction house, I don't have to tell the organiser, or the seller what my top bid was.

If I win, that is the end of it, in terms of disclosure.

seems a little bit mad, eBay 😞