In a typical auction, one of three things will happen.
SOLD:
In this situation, the highest bidder has reached or exceeded the reserve price and has won the asset.
*Please note: If you are the highest bidder and the reserve has been met, you have legally entered a contract at that stage, and are responsible for the purchase of the item.
PASSED IN:
This occurs when the highest bid did not reach the reserve price. In this situation, the asset is held back and may be placed in another auction at a later time or, the vendor may decide to remove the asset from auction.
REFERRED:
In this situation, the highest bid may have come close to, but did not reach, the reserve price. When this happens, the highest bid is referred to the vendor, who will then decide to either accept or decline the highest bid, or make a counteroffer. Contact is then made with the highest bidder to negotiate a sale. If a sale price is not agreed upon then the asset will go into another auction.