The only time a no reserve auction is a problem is when there are not two bidders interested in the same item. At that point (two biders), the bidders do determine the value. But that also tells you something about market and value - value is determined buy supply / demand, so if two or more people aren't interested, the item really is generally of little value and it is probably better to take your money and go on to something else. The no reserve auction is also a good way to get rid of something you don't want or is of limited value because everything finds a new home (made me flash back to my 1978 Chyrsler Cordoba - ran an add for 6 months to sell - never got a call).
The reserve really comes in when there is only one bidder - it is for saving that situation where something may go cheap, but that is usually because no one else wants it. Things with value are always picked up because there are always a group waiting for things to fall through the cracks. I've indicated before that I am involved with a number of auctions - local, national, and international. When there are reserves, they do protect the seller from unusual circumstances - bad communications, bad weather, etc. But I can also tell you that many items that sell are covered by people not in attendance.
Anyone that does a lot of auctions also knows that you don't bank on a single item - it is multiple items and the end number. Sometimes something sells cheap, and sometimes there are good surprises (like a 3m bus).
So if someone is not interested in a no reserve auction and they think there property is so great, why not just put a price on it and sell it? It is because they are hoping someone will come in and overpay. No one whines then. Only when they underpay. Auctions are a dice roll - you play, you win or loose. Nature of the game. But even the losses are never to zero. So the hemi cuda worth 425 gets 500K on a good day, 400K on a bad day (or whatever they are worth - just an example). It wasn't 500 or nothing.
The reason that you enter the auction in the first place is the exposure they provide, and the willing and capable buyers. That is what you pay for - it is things you don't have or you would not need the auction in the first place. There is a hype and atmosphere there. I can also tell you there are people that ONLY buy at auction, and they will pay more there then if you offered them the car direct. There are also times that you make an offer on something, then buy it for less when the seller decides it needs to be auctioned.
Those are the joys.
