Auction A method of selling real or personal property in a public forum through open and competitive bidding
Auction Block The podium or raised platform where the auctioneer stands while conducting the auction. “Placing (an item) on the auction block” means to sell something at auction.
Auction Listing Agreement A contract executed by the auctioneer and the seller which authorizes the auctioneer to conduct the auction and sets out the terms of the agreement and the rights and responsibilities of each party.
Bid Caller/Auctioneer The person whom the seller engages to direct, conduct, or be responsible for a sale by auction. The person who actually “calls,” “cries or “auctions” the property at an auction, recognizing bidders and acknowledging the highest bidder.
Apprentice Auctioneer An auctioneer who is in training, operating under the supervision of a licensed or experienced auctioneer.
Agent A person who acts for or in the place of another individual or entity by authority from them.
Bid A prospective buyer’s indication or offer of a price he or she will pay to purchase property at auction. Bids are usually in standardized increments established by the auctioneer.
Lot Item or group of items put up for sale.
Bidder’s Choice A method of sale whereby the successful high bidder wins the right to choose a property or properties from a grouping of similar or like-kind properties. Bidder may buy 1 or all items. If bidder does not buy all, auctioneer may offer to backup bidder or restart the sale.
2 for the money # for 1 money multiple items for total amount bid
Bidder Number The number issued to each person who registers at an auction.
Opening Bid The first bid offered by a bidder at an auction.
Withdrawal PASS Failure to reach the reserve price or insufficient bidding.
Bid Assistants Individuals who assist the auctioneer, spot bidders and assist prospective bidders with information to help them in their buying decision. Also known as ringmen, bid consultants, bid spotters, or groundsmen.
Absentee Bidder A person (or entity) who does not attend the sale but submits, in advance, a written or oral bid that is the top price he or she will pay for a given property.
Absentee Bid A procedure which allows a bidder to participate in the bidding process without being physically present. Generally, a bidder submits an offer on an item prior to the auction. Absentee bids are usually handled under an established set of guidelines by the auctioneer or his representative. The particular rules and procedures of absentee bids are unique to each auction company.
Preview Specified date and time property is available for buyer viewing/inspections.
Absolute Auction . Auction Without Reserve
An auction where the property is sold to the highest qualified bidder with no limiting conditions or amount. The seller may not bid personally or through an agent. Also known as an auction without reserve.
Reserve The minimum price that a seller is willing to accept for a property to be sold at auction. Also known as the reserve price.
Reserve Auction, Subject to Confirmation, Auction With Reserve
An auction in which the seller reserves the right to establish a reserve price, to accept or decline any and all bids or to withdraw the property at any time prior to the announcement of the completion of the sale by the auctioneer.
Sealed Bid A method of sale utilized where confidential bids are submitted to be opened at a predetermined place and time May or may not included live auction.
Trustee’s Sale A sale at auction by a trustee.
Caravan Auctions A series of on site auctions advertised through a common promotional campaign.
Ballroom Auction An auction of one or more properties conducted in a meeting room facility.
Estate Sale The sale of property left by a person at his or her death.
Minimum Bid Auction An auction in which the auctioneer will accept bids at or above a disclosed price. The minimum price is always stated in the brochure and advertisements and is announced at the auctions.
Minimum Opening Bid The lowest acceptable amount at which the bidding must commence.
Multi-Property Auction A group of properties offered through a common promotional campaign. The properties to be auctioned may be owned by one seller or multiple sellers.
Multi-Seller Auction Properties owned by many sellers, offered through a common campaign are auctioned in a single event.
Tax Sale Public sale of property at auction by governmental authority, due to nonpayment of property taxes.
On-site Auction An auction conducted on the premises of the property being sold. If you move you pay taxes!
Collusion/ Bid Rigging The unlawful practice whereby two or more people agree not to bid against one another so as to deflate value or when the auctioneer accepts a fictitious bid on behalf of the seller so as to manipulate or inflate the price of the property.
Buyer’s Premium An advertised percentage of the high bid or flat fee added to the high bid to determine the total contract price to be paid by the buyer.
Commission The fee charged to the seller by the auctioneer for providing services, usually a percentage of the gross selling price of the property established by contract (the listing agreement) prior to the auction.
No-Sale Fee A charge paid by the owner of property offered at a reserve auction when the property does not sell.
“As Is” Selling the property without warranties as to the condition and/or the fitness of the property for a particular use. Buyers are solely responsible for examining and judging the property for their own protection. Otherwise known as “As Is, Where Is” and “In its Present Condition.”
Caveat Emptor A Latin term meaning “let the buyer beware.” A legal maxim stating that the buyer takes the risk regarding quality or condition of the property purchased, unless protected by warranty.
Terms and Conditions The printed rules of the auction and certain aspects of the Purchase & Sale Agreement that are read and/or distributed to potential bidders prior to an auction sale. Usually included in published advertisements or announced by the auctioneer prior to the start of the auction. The legal terms that govern the conduct of an auction, including acceptable methods of payment, terms, buyer’s premiums, possession, reserves and any other limiting factors of an auction.
Appraisal The act or process of estimating value.
Hammer Price/Auction Price The price of a property obtained through the auction method of marketing.
Contract Price Usually means hammer price Plus Buyers premium.
Upset Price Commonly known as the reserve price.