What is a reserve in an auction?

In an auction, a reserve is a minimum price set by the seller that must be met or exceeded in order for the item to be sold. The reserve price is typically not disclosed to the bidders and is kept confidential between the seller and the auction house. If the bidding does not reach the reserve price, the seller is not obligated to sell the item and may choose to remove it from the auction or negotiate a private sale with a bidder. The use of a reserve is common in high-value auctions or if the seller wants to ensure they receive a fair market price for their item.