Sedo Reserve not met

[richface]

Hello Guys I am just curious,

If a domain does not reach its reserve on Sedo Great domain auction does the seller have an option to accept the highest bid? I know the seller will not be obligated to sell at this point but just wondering?

Your Thoughts.

R.

 

[Biggie]

my thoughts...

that option would defeat the point, of setting a reserve

 

[Theo]

No. If the reserve is not met, there is no obligation to sell.

 

[barrysanders]

No, you do not have ability to contact bidder, so if your reserve is $5k and they bid $4.9K then you will not be able to accept or contact or know who it was.

 

[domaingeneration]

Instead of looking at the lower bid, consider other channels to sell your great domain if
the reserve is not reached at Sedo auction. Other brokers maybe able to achieve it for you.

DG

 

[richface]

I am bidding on a domain and my Max is below the reserve price. I think it would be nice to at least give the seller that option at the end as circumstances can change for the seller so quickly. Sedo might as well start the auction from the seller's reserve as all lower Bids are pointless I guess.

Anyway Thank you for your input and precious time everyone.

 

[angel69]

Richface, Sedo and the seller can do exactly what you mention if they want to. I've been contacted a couple of times about this in regular auctions where the winner didn't pay, once I bought the name for the same amount of the 2nd highest bid (mine) and I was also contacted once after I had bid on a Great Domain, but apparently the seller told Sedo I could only have it if I increased my offer to what he now wanted (but it was still below reserve), I didn't go for it

If a seller gets a price close to what his reserve was in Great Domain Auctions he'd better think twice before refusing to offer it to highest bidder, give the times we're in. Sedo won't list it in Great Domains for some time to come after it's already made the rounds in their ad campaigns, they prepare and advertise this months in advance. If they did that the domain would become stale, and it would work against the seller. As for Sedo brokers (or any) they're simply too expensive. It's true, the seller cannot know who the 2nd highest bidder was if the winner is a deadbeat, or who the bidder who came nearest to reserve is, but sellers can tell Sedo to contact those bidders, and Sedo should like this because it still makes its commission

But if you're the highest bidder and the domain wasn't sold because reserve wasn't met, then simply contact the seller using the WHOIS afterwards, Sedo cannot prevent this since the auction is over, neither party could get penalized. As the interesed party you'll get a better deal buying since there is no 20(or 15)% Sedo commission to be paid by the seller, so he'll give you a lower price

Of course the seller is never forced to sell below a reserve he set, or below a minimum bid/offer he wanted, and Sedo normally does NOT take the initiaitve after an auction ends and reserve isn't met, the seller needs to tell Sedo, and usually Sedo will do it, a bit less in commission is much better than no commission. If a buyer wants to buy and the seller agrees on a price Sedo will do all it can to close a deal, no question

Another suggestion is also that when reserve wasn't met the seller could then start an auction w/the highest bid he got as the new starting bid, it would be smart on Sedo's part to suggest this to sellers. It gives Sedo the assurance of a commission since a sale will take place, and the domain will make the rounds 7 more days, possibly even fetching a higher selling price, which works even better for both Sedo and sellers

 

[Jdaly]

Sedo could make a commission if they allowed us to communicate with the bidder even if they didn't reach reserve. I know I've done it before on Flippa.com where the highest bidder and I came to an agreement and Flippa took their commission, they were readily willing to work with us, not sure if they have the same volume as Sedo though..

 

[katherine]

You can always contact Se.do if you are willing to accept a bid that did not meet reserve.

 

[angel69]

I know Sedo will contact the highest bidder (when reserve isn't met) for the seller, but the seller has to ask them to do this. My point is that it would serve Sedo's monetary interests better if they had this as a policy, ie that when reserve is not met the seller is contacted asking him if he'd consider the highest bid he got. But they do not have this policy. They overlook the fact that if they took the initiative and did that they'd have a better chance of making commission which they don't make in an auction where reserve is not met

I agree w/JDaly that sellers should be allowed to communicate w/that highest bidder directly when reserve wasn't reached. Sedo has a better chance to make commission that way, and communicating between parties is more productive if done directly. Sedo doesn't go for that. If it's an MLS you can't write a note to the other party ever. For non-MLS you can communicate while O/C-O's are taking place back & forth. But paranoid Sedo has to review what was said BEFORE the other side can read it. Sedo lives in fear that a seller will tell the buyer in a message how to contact him using the WHOIS which may result in a direct sale and Sedo makes no commission. They also fear the buyer will tell the seller how to reach him so they can close a deal outside Sedo (But..... if a buyer was smart and qualified enough to open a Sedo acct and to be trading on their platforms, isn't that buyer smart enough to know about the WHOIS and how to use it ? and yet he chose to make the offer thru Sedo which results in a higher selling price for him since the seller has to pay commission) That paranoia is not well founded and I can give you examples where the comments I've sent buyers or sellers for str8 Sedo deals were banned, and I had not written anything "inappropriate"

Sedo can learn from GD and others that allow free exchange of mesages, I don't think GD supervises what's said between parties. They may lose a deal now and then if the parties close the deal outside GD but this keeps GD Auctions members more satisfied w/their services

Sedo could make a commission if they allowed us to communicate with the bidder even if they didn't reach reserve. I know I've done it before on Flippa.com where the highest bidder and I came to an agreement and Flippa took their commission, they were readily willing to work with us, not sure if they have the same volume as Sedo though..

Richface, you made an excellent point here ! I've always scratched my head as to why Sedo allows bidding below reserve, ie Sedo tells you the reserve is in a certain range, like between $1,000 and $2,500, and yet if you want to bid $100 the system lets you. What's the point ? It makes no sense. The only thing that occurs to me is that Sedo wants to show the seller what type of bids he is actually gettin for his domain, and somewhat pressure him to maybe lower reserve

.... Sedo might as well start the auction from the seller's reserve as all lower Bids are pointless I guess...

 

[Biggie]

Richface, you made an excellent point here ! I've always scratched my head as to why Sedo allows bidding below reserve, ie Sedo tells you the reserve is in a certain range, like between $1,000 and $2,500, and yet if you want to bid $100 the system lets you. What's the point ? It makes no sense. The only thing that occurs to me is that Sedo wants to show the seller what type of bids he is actually gettin for his domain, and somewhat pressure him to maybe lower reserve

the point in allowing lower than reserve bids is....

the volume of bids may entice others to increase their bids, based on the presummed interest in the domain.

and in such auctions where one has to bid higher than last bidder, hopefully it would bring offers close to or above reserve.

imo...