What is required of the auctioneer when an item is sold under reserve?

When an item is sold under reserve, the key requirement is that the auctioneer has the authority to not sell the item if the reserve price is not met. This means that there is a minimum price, known as the reserve price, that the seller has set for the item, and the auctioneer must ensure that this price is reached during the bidding process. If the highest bid does not meet or exceed this reserve price, the auctioneer can choose not to complete the sale, allowing the seller to retain ownership of the item.

This practice is essential in ensuring that sellers do not end up selling their items for less than they value them. It protects the interests of sellers by providing them with a safeguard against low bids that fall short of their expectations. While it is common for auctioneers to announce when an item is under reserve, they are not required to disclose the actual reserve price, hence maintaining the confidentiality of that information.

Therefore, the auctioneer's role in this scenario is critical, and understanding their authority in this context is fundamental to grasping how reserve auctions function.