Reserve prices are applied only to properties sold at public auction on Flippa.
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.
To be in the running to win an auction, a buyer must make, and the seller must accept, a bid that's equal to or more than the reserve price.
Reserve prices are kept hidden by default - only the seller knows what the reserve price is unless the seller chooses to publicly display the reserve. It can be as low as $1, but it must be greater than or equal to the starting price
How a reserve price works
If the reserve price for an active auction hasn't been met, the price will be displayed in red, and you'll see a note about it on the auction listing:
The seller can accept bids below the reserve price, but those bids can't win the auction. So if a buyer's bid has been accepted and this note is still displayed, the reserve price hasn't been met, and that bid won't win the auction. The buyer will need to make a higher bid to be in the running to win the auction.
Once the seller accepts a bid that's equal to or more than the reserve price, the auction listing is updated to reflect that, and the price is shown in green, and the following note is displayed:
Once the reserve price has been met, the highest accepted bid will win the auction.
UPDATED: May 25, 2018