Those reserves really were set too high.
As they are apparently calculated through a range of valuations, they aren't set at the "break even" cost so production is ensuring they are making their money (on top of the profit made from selling the series and advertising etc). If they were assholes (and if it made good TV) they could set the reserves at any amount and never have the contestants make any real cash in theory.
But it was obvious that they thought that those apartments were going to hit the low 2Ms and probably figured there was enough money to be made all round by setting the reserves at the level they were and really what does it matter to them if they don't. After all the competition is for one prize of $100K - money above reserve is a bonus.
Perhaps they should do a percentage of sales rather than above reserve with the "Reserve" to be used as it is in normal auctions as only the point of withdrawal from the auction to move into private negotiation. Even gaining 20 percent of the final sales price would ensure that the majority went to the producers while still guaranteeing that the contestants were rewarded for their hard work. It would still be a competitive auction process.
As they are apparently calculated through a range of valuations, they aren't set at the "break even" cost so production is ensuring they are making their money (on top of the profit made from selling the series and advertising etc). If they were assholes (and if it made good TV) they could set the reserves at any amount and never have the contestants make any real cash in theory.
But it was obvious that they thought that those apartments were going to hit the low 2Ms and probably figured there was enough money to be made all round by setting the reserves at the level they were and really what does it matter to them if they don't. After all the competition is for one prize of $100K - money above reserve is a bonus.
Perhaps they should do a percentage of sales rather than above reserve with the "Reserve" to be used as it is in normal auctions as only the point of withdrawal from the auction to move into private negotiation. Even gaining 20 percent of the final sales price would ensure that the majority went to the producers while still guaranteeing that the contestants were rewarded for their hard work. It would still be a competitive auction process.