The starting price for a real estate auction will vary and is dependent on the type of auction being conducted.
If the property is being sold using a minimum published bid auction as stated above, the minimum published bid amount will be the starting price.
If the property is being sold with an undisclosed reserve, the starting price will typically be an amount below market value that has nothing to do with the value of the property. In a real estate auction it is important to allow the bidders the opportunity to place their bid, and through competition, determine the market value of a property.
In addition to selling your real estate at auction with a reserve, a third option does exist. This option is known as an absolute or no reserve auction. The starting price in an absolute or no reserve auction is very similar to the undisclosed reserve starting point and will typically be a number below market value that will have nothing to do with value of the property.