Is it true that a seller may not bid at a reserve auction?

The statement that a seller may not bid at a reserve auction is false. In many situations, especially in reserve auctions, sellers are often permitted to bid on their own items as a strategy to help reach their reserve price. This can allow the seller to ensure that their item does not sell for less than they are willing to accept.

Reserve auctions are designed to protect the seller's interests by setting a minimum price that must be met for a sale to occur. If bidding does not reach this predetermined reserve amount, the seller retains the right not to complete the sale. The ability for sellers to bid at such auctions can also create competitive bidding environments that might ultimately raise the final sale price.

While regulations can vary by state and auction rules, in the context of standard auction practices, the seller's ability to bid is generally allowed unless specifically restricted by the terms of the auction.