Thanks Fiona.
My concern is that once the property passes in you don't really have a strong hand to bargain with and as you say the clearance rate has really dropped off over the last few weeks.
I was really comfortable with our reserve because it was a reasonable price for the house but at the same time a sizable profit for us. I was also hoping that we would go over our reserve at auction because once the house is on the market bidding seems to pick up a bit.
I think you've answered your own question. If reserves are too high it usually stalls bidding which isn't good, most times once the property is "on the market" (aka reserve has been met) there's a little boost to the bidding.

For us we've always set a price we're happy with, it may not be the absolute most we might want for it but something we would be content with so that if we get more it's a nice bonus.

Best of luck for Saturday I hope the bidders go crazy!