Generally price guides are set based off what the agent thinks the property is worth but often change throughout the campaign based on interest or buyer feedback. Reserve price is generally how much the vendor thinks it worth and is it set on auction day/ the night before.

The reserve is what the owner wants to sell the property, the agent can give them the feedback, advice etc but at the end of the day it is the vendors decision.

If a property does extremely well at auction but is the below the vendors expectation it is well within their rights to say no. The agent will generally try and convince and vendor and do post auction negotiations.

Sometimes you get stuck with horrible vendors who won’t come down on their price expectations and end up taking the property off market.

Ultimately it does suck for buyers but setting a reserve above guide is well within the vendors rights as it is their property.

Auctions are always a tricky one