The reserve price is the lowest commercial value. On this basis, the auction protection price and the starting price are determined. If the highest bid price is lower than the protection price, it shall be auctioned or sold again. (page 4 1988 of the Maritime Law Dictionary) The reserve price mainly appears in the Auction Law of People's Republic of China (PRC). Article 28 stipulates that "the client has the right to determine the reserve price of the auction target and requires the auctioneer to keep it confidential. If the auction of state-owned assets needs to be evaluated according to law or in accordance with the provisions of the State Council, it shall be evaluated by an evaluation agency established according to law, and the reserve price of the auction target shall be determined according to the evaluation results. " Article 44 stipulates: "The entrustment contract shall specify the following items ...; (3) The reserve price proposed by the client. " Article 55 stipulates that "if there is no reserve price in the auction, the auctioneer shall explain it before the auction." If the auction target has a reserve price, when the highest bid price of the bidder does not reach the reserve price, the bid price will not take effect and the auctioneer shall stop the auction of the auction target. "
It can be seen that the reserve price is the lowest commercial value of the subject matter, or the most likely transaction price of the subject matter confirmed by the third party (real estate appraisal agency) in the auction market, which is formed in the incomplete market due to the forced quick liquidation factor and is the objective price relative to the auction client; The reserve price is determined by the auction client on the basis of the reserve price, which is relatively more subjective.
In the auction of the first nature, that is, the auction based on the principle of voluntariness, the auctioneer is the owner of the auction target and has the right to decide the reserve price or minimum commercial value of the auction target by himself. Generally speaking, I'm going to sell it at this price, and I won't sell it below this price. At this point, the reserve price is the reserve price. When the auction fails, the client can lower his reserve price, because the minimum commercial value is decided by himself and he can change it himself. In the second auction, the forced auction, the reserve price with the lowest commercial value cannot be equal to the reserve price. This is because: first, these two prices are determined by different subjects, and the reserve price is determined by the statutory evaluation agency according to law; The reserve price is determined by the auction client, that is, the judicial organ or the liquidation group and the creditors' committee in the entrusted auction contract. Two, the reserve price within the validity period of the assessment report, no special circumstances shall not be changed; Many auctions can lower the reserve price in order to close the transaction, but not lower than the reserve price. Third, the change of the reserve price must be evaluated by the statutory evaluation agency according to the changed conditions; The reserve price can be flexibly determined above the reserve price according to the specific situation of the market and auction. In short, the auction reserve price determined by the real estate appraisal agency according to law is the final reserve price of the auction, which is an unbreakable price bottom line. Iii. Legal Status of Auction Bottom Price The real estate appraisal report (the most important part of which is to determine the auction bottom price), as a price verification document, plays the role of professional technical appraisal such as judicial appraisal and handwriting appraisal in litigation, and has professional, authoritative and strict legal significance, that is, in the absence of evidence to the contrary, the court can make a judgment accordingly. And this judgment will have the most direct impact on the interests of the parties. The legal status of the auction reserve price is also shown in the following points: 1, and the auction reserve price is the basis for determining the reserve price and the starting price; 2. The auction reserve price cannot be changed at will; 3. When the auction fails, it is an option for the court to pay debts in kind. At this time, the auction reserve price is the debt repayment price; 4. The determination of the auction reserve price must be completed by the legal real estate appraisal institution in accordance with legal procedures. 5. Real estate appraisal institutions must bear legal responsibilities when determining the reserve price of auction real estate. Four. Several problems in determining the reserve price of real estate auction 1? The legal status of the auction reserve price puts forward higher requirements for real estate appraisal institutions and all appraisers, that is, objectively and accurately evaluating the auction reserve price of real estate.
You can't simply give a few discounts. We must accurately grasp the influence of factors such as forced quick liquidation on the open market value of the appraised real estate according to the requirements of the real estate appraisal standard. Judging from the maximum possible transaction price of the auction reserve price subject matter in the auction market, the failure to make a transaction and the substantial deviation between the transaction price and the reserve price are more or less related to the failure of real estate appraisal agencies to accurately grasp the influence of forced quick liquidation and other factors on the valuation of real estate open market value. 3. Collect the real estate auction market as much as possible, and carefully analyze the relationship among auction price, market price and auction reserve price. Take the real estate auction market in Shenzhen as an example. Generally speaking, the residential transaction price is always higher than the auction reserve price and close to the market price, but the office building is often not available. Nobody cares about the whole auction of multiple houses. If you take them apart and shoot them again, you can make a deal at a price higher than the reserve price. This situation shows that one possibility is that the institution has not paid attention to the auction market, and the other possibility is the whole auction. After the institution buys it, it sells it in batches, and the tax is about 10%. Other risks are still outside, which makes institutional investors flinch. But we can also draw the conclusion that the gap between the reserve price and the market price of real estate auctions for different purposes should be different; There are two conclusions that the reserve price of the whole auction and the zero auction should be different. 4. The evaluation report must disclose the defects of the auctioned property and take them into consideration when determining the auction reserve price. Real estate involved in litigation generally goes through a process of seizure and litigation, and some even last for several years; Some owe utilities and property management fees; Some have lease restrictions; Some involve other lawsuits; Some people have to pay a premium, which affects the value of the property being auctioned. The evaluation report must disclose the defects of the auctioned property, and correct the market value of the auctioned property according to the impact, especially the auction reserve price, in order to protect the interests of bidders. 5. Attention should be paid to protecting the interests of the owner of the property being auctioned. The compensated person (usually the mortgagee) of the auctioned property always hopes that the auction reserve price will be lower in order to realize cash as soon as possible and recover cash; In order to close the case as soon as possible, the judiciary may also hope that the auction reserve price will be lower. At this time, the reasonable determination of the auction floor price is to protect the legitimate rights and interests of the right holder of the auctioned property (the losing party), especially when the right holder of the auctioned property has other property, its significance is more obvious.
The verb (the abbreviation of verb) and the auction floor price in practice are 1. At present, the people's courts at all levels in Shenzhen adopt the method of drawing lots to entrust appraisal agencies, that is, some real estate appraisal agencies are designated appraisal agencies by the courts, and draw lots twice a month to decide the appraisal agencies of specific cases, and the appraisal agencies are not in contact with the auction house and the original defendant. This practice ensures that the evaluation agency can issue the evaluation report independently and objectively. On the issue of determining the auction reserve price and the auction reserve price, although the Guangdong Higher People's Court has issued a notice requiring the executive departments of courts at all levels to reduce 15 percentage points on the basis of evaluating the market price to determine the reserve price for the first auction; If the auction fails, reduce 15 percentage points and determine the reserve price for the second auction; If the auction still fails, the reserve price of the second auction will be used as the debt repayment price, and the real estate will be transferred to the winner (creditor). But in fact, in most cases, courts at all levels still use the auction reserve price assessed by real estate appraisal agencies as the auction reserve price. If the two auctions are still unsuccessful, the reserve price of the auction shall be used as the debt repayment price, and the property shall be transferred to the winning party (creditor). Appraisal reports issued by real estate appraisal agencies only determine the market value and auction reserve price of real estate, but not the auction reserve price (the "auction reserve price" mentioned in some appraisal reports should actually be the auction reserve price). The auction reserve price shall be determined by the court when entrusting the auction.
2. In the current Shenzhen real estate auction market, the auction reserve price of shops should generally be between 60% and 80% of the market price; The reserve price of residential auction should generally be between 7-80% of the market price; The auction floor price of office buildings and factories should generally be between 6-70% of the market price. The details should be determined by the evaluation agency according to the actual situation. To sum up, we should correctly understand the exact meaning of the reserve price of real estate auction, distinguish it from the reserve price of auction, adhere to its authority and due legal status, and confirm it in relevant laws and regulations, so as to gradually make all sectors of society have a deeper understanding of the authority and legal status of real estate appraisal agencies. Of course, this is also inseparable from the joint efforts of all our real estate appraisal agencies and all real estate appraisers.