What is a reserve price at auction?

Before an auction takes place a reserve price is agreed between the auctioneer and the seller. Each property put up for auction will be allocated a reserve. This reserve price is not disclosed with buyers prior to the auction day as a guide price would be. The figure is essentially a price at which the auctioneer must reach before the property can be sold. The reserve price can vary, anywhere from +10% of the guide price or -10% of the guide price.