By Srishanbid.com
Guideline on reserve price and indicative price
The reserve price is the lowest price the seller will happily accept for a listed property. Sellers are legally bound to sell the property once bidding meets or passes the reserve price they have set. So a reserve price should reflect the minimum price the seller is happy to get for the property.
Furthermore, reserve price is kept as a secret. Only the seller knows what the reserve price is. However, it must be higher than the starting price.
The indicative price is the estimated opening price of a security provided by a specialist to determine the level of interest on either the buy or sell side of the security.
The differences are obvious. Indicative price is usually lower than the reserve price. Where else the reserve price is slightly higher than the indicative price.
Visit www.srishanbid.com for more information on real estate open bidding in Penang and Malaysia.
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