Reserve price

The reserve price is the minimum amount, agreed between the seller and the auction house, below which the lot is not sold. It stays confidential: bidders do not know it. If bidding stops before reaching it, the lot is declared unsold, or "bought in".

In France, the Commercial Code regulates the practice: where the item has been estimated, the reserve cannot exceed the low estimate published in the catalogue or announced publicly. Up to that amount, the auctioneer may bid on the seller's behalf; the seller, for their part, is not allowed to bid on their own lot. Rules differ in other countries, so check the conditions of the house you consign to.

Why it matters:

• For the seller, the reserve protects against a very low result on a quiet day. Set too high, it leads to an unsold lot, which may incur fees and leave a trace in results databases.
• For the buyer, the low estimate gives an idea of the floor, since in France the reserve cannot exceed it.

How to set it: from the watch's market value and recent results for the same reference, brought back to the hammer price. A reserve close to the net a dealer would offer is a prudent benchmark: below it, you are better off selling another way.

Example: a watch estimated at €8,000 to 12,000 can have a reserve of €8,000 at most. If bidding stops at €7,500, it is not sold; the house may then offer a private sale after the auction.

Our article selling your watch at auction covers negotiating the reserve and the commission.