Could any locals please give me some advice on playing the auction game in Melbourne? Say we want $700k for our house. The agent knows this and agrees. Well, he wants us to set the reserve at $620k with the assurance that he won't put it on the market until the price has well and truly passed the reserve price. I don't understand this. If we give him a $620k reserve and he puts it on the market at, say $680k and there are no more bids, then its over. We would be selling too low. If our absolute lowest price is $700k then that should be the reserve. But agent is saying that if the reserve is too high it won't be a good auction and we will just piss off our buyers. Is this true? Is lowballing the reserve a good auction strategy, a Melbourne thing or do we just have a dud agent? I am feeling very confused and stressed about the whole process. My instinct is to set the reserve at $700k. But I don't want to stuff up the auction. I have no idea what to do.