Set Your Own Reserve Price? Warning for UK Property Sellers

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Over the past few months, we’ve noticed some auction adverts popping up using the phrase “set your own reserve price.” On the surface, this sounds empowering and reassuring. After all, what seller wouldn’t want full control over the minimum price their property sells for? However, this is one of those situations where something that sounds attractive at first glance deserves a closer look.

Auction is a professional, data-driven method of sale. Reserve prices are not supposed to be based on personal preference or optimism. They are based on evidence. Good auctioneers analyse comparable sales, local demand, property condition, mortgageability, buyer appetite and current market conditions before recommending a reserve. In other words, the reserve price is based on a professional valuation, not a customer choice.

When an auctioneer suggests you can simply “set your own reserve,” it raises an important question: is the focus on achieving a successful sale, or on winning your instruction?

Updated by: Mark Grantham on 5th February 2026

The Difference Between Winning Instructions and Selling Properties

The auction world is competitive. Auction houses compete with each other to secure new properties for their catalogues. Most operate professionally and value their reputation, but every now and again we see overly optimistic operators appear who tell sellers what they want to hear in order to secure a listing.

It is important to understand the commercial reality behind this. A high suggested reserve can make a seller feel reassured and confident in the short term. It can help an auctioneer win the instruction quickly and lock the seller into a contract. But if the property does not sell, the seller is the one who ultimately loses time, momentum and sometimes money.

A good auctioneer will listen carefully to your preferred “bottom line,” but they will not simply agree with it if the evidence does not support it. Taking on a property with an unrealistic reserve wastes everyone’s time. 

Reputable auctioneers would rather have a difficult conversation at the start, than see a property fail on auction day.

Who Actually Sets the Reserve Price?

Many sellers are surprised to learn that the final decision on the reserve price sits with the auction company, not the seller. Crucially, the reserve price should be provided free of charge and with no obligation before you sign any auction agreement. This gives sellers the opportunity to understand the recommended pricing strategy and make an informed decision.

As a general guide, on-the-day auction reserves are commonly set at around 20% below a realistic market value, while extended auction reserves are often around 10% below. There are always exceptions. Some “auction gold” properties – such as the worst house on the best street – can justify stronger pricing, while properties with significant issues may require more aggressive reserves. The key word is realistic.

Auction Pricing Is Designed to Start the Bidding, Not Finish It

Auction works because of two key features: bidding and binding. Properties are priced to attract interest quickly and create competition. The legally binding nature of auction means buyers are prepared to act decisively, but only if the opportunity looks attractive.

If a reserve price is set too high, fewer buyers register, fewer viewings take place and the momentum that auctions rely on never materialises. By contrast, a well-judged reserve creates urgency and competition. Many properties sell above reserve because multiple buyers are competing in real time. This is one of the most reassuring aspects of auction for sellers: you are not accepting the first offer that comes along, you are allowing the market to determine the price.

It is also worth remembering that the reserve price is a safety net, not a target. A low reserve does not mean selling cheaply. It means creating the conditions for competitive bidding.

The Hidden Cost of an Unsold Auction Property

When a property fails to meet its reserve, it is recorded as unsold. This is not a disaster and it does not mean the property cannot sell. Unsold lots are often simply re-entered into the next auction once pricing is adjusted. However, it is still not the ideal outcome and is something professional auctioneers work hard to avoid.

Auction relies heavily on momentum and buyer excitement. If a property has to be entered again and again with an unrealistic reserve, interest can gradually reduce and valuable time is lost. Auctioneers are not interested in repeatedly relaunching the same property – their goal is to achieve a successful sale as efficiently as possible. A realistic reserve helps ensure that momentum is maintained and the best possible result is achieved.

Transparency Is One of Auction’s Greatest Strengths

One of the most refreshing aspects of auction is its transparency. Legal packs are prepared upfront, the timeline is fixed, the bidding is public and completion dates are clear. Good auctioneers are open about pricing and honest about risks.

Unrealistic reserve promises undermine this transparency. Sellers should feel confident that their auctioneer is providing evidence-based advice, even if it is not always what they hoped to hear.

Upfront Fees and Long Exclusivity Periods

It is perfectly true that some reputable auctioneers charge upfront marketing costs. However, caution is sensible if an auctioneer is suggesting an unusually high reserve while also asking for non-refundable fees or long exclusivity periods. This combination can leave sellers tied into an approach that may not deliver results.

Signs Sellers Should Watch For

• Being told the reserve can be “whatever you want”
• A valuation provided without comparable evidence
• Pressure to sign quickly
• Non-refundable upfront fees combined with ambitious pricing
• Long exclusivity periods
• Reluctance to discuss risks or downsides

A Balanced Perspective

The UK auction industry is largely professional and reputable. Most auctioneers take pride in their results and value long-term relationships. This article is not about criticising auction as a method of sale. Quite the opposite. Auction remains one of the most transparent and effective ways to sell property quickly and securely.

The key message is simple. If something sounds too good to be true, it usually is. A realistic reserve price does not reduce your chances of achieving a strong sale price – it increases them.

Why Unconditional Auction Matters

The true rules of auction mean the sale is legally binding on the fall of the hammer – sold means sold. This is what most people expect when they think of an auction sale. Once the hammer falls, contracts are exchanged immediately and the buyer is committed to completing, usually within 28 days.

For this reason, we always recommend unconditional auction wherever possible. It provides certainty, speed and clarity for both buyers and sellers.

By contrast, conditional auction – commonly known as the Modern Method of Auction – is not legally binding on the fall of the hammer. Instead, the successful bidder pays a reservation fee and is given a period of time to exchange contracts. While this method has its place in certain situations, it does not offer the same level of certainty that many sellers expect from auction.

The legally binding nature of unconditional auction is one of its greatest strengths. Buyers understand they must be ready to proceed, and sellers gain confidence that a sale agreed at auction will complete.

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