In an online auction, the reserve price and the starting bid are two different concepts:
​
​Reserve Price: This is a confidential minimum price that the selling agency is willing to accept for an item. If bidding does not reach this amount, the auction for that item will not end with a winning bidder, even if someone bids higher than the starting bid. Not all auctions have a reserve price. If the listing does have a reserve price, the listing page will state either "Reserve Price Met" or "Reserve Price Not Met."
​
​Starting Bid: The starting bid is set by the selling agency upon creating their listing. This is the lowest bid that can be placed to start the bidding on the auction. It's the amount at which bidding begins, and it is visible to all bidders.
​
​Why can't I bid lower than the starting bid?
​
The starting bid is simply the minimum amount required to begin the bidding process. Bidders cannot place a bid below this amount because, on most listings, it's designed to ensure that all bids start at a competitive level. Allowing bids lower than the starting bid would undermine the structure of the auction and make it difficult for bidders to compete fairly.
​
The starting bid also helps create momentum for the auction, encouraging bidders to actively engage in the auction as soon as it opens. So, while you may not bid below this amount, once the auction begins, you can place bids higher than the starting bid to compete with others.
​
​What if the starting price is too high?
​
In some cases, the selling agency may set the starting bid at a level that reflects their basic expectations for the sale. However, at Municibid, we review each listing to ensure fair and competitive auctions. If we notice that a starting bid seems too high, our team will reach out to the selling agency and recommend lowering it to encourage more bidder participation.
​
That said, the final decision on the starting bid rests with the selling agency, and while they may consider our advice, they are not required to adjust the price.