A reserve price is the minimum price that a seller is willing to accept for an item during an auction. If bidding does not reach this price, the seller is not obligated to sell the item. This concept helps protect sellers from selling their items for less than they deem acceptable. In many auctions, such as those for artwork or real estate, the reserve price is kept confidential. This means that bidders do not know the minimum amount required to win the item. If the bidding surpasses the reserve price, the item will be sold to the highest bidder.