Auction Terminology
A
Absentee Bid: A bid submitted in advance by a buyer who cannot attend the auction in person.
Absentee Bidder: An individual who bids at an auction while they are offsite, often through a representative.
Absolute Auction: An auction where the item is sold to the highest bidder regardless of price, with no reserve or minimum.
Accounting of Sale: A report issued to the seller by the auctioneer detailing the financial aspects of the auction.
Agent: A person authorized by a seller to act as a representative to sell a piece of property.
All Sales Final: No refunds are given. The auctioneer will not resell or re-auction any item after purchase.
Appraisal: The act or process of estimating value.
As Is: Items are sold in their current condition without warranties or guarantees.
Attributed: The opinion that an item is from a particular person or factory, without definitive proof.
Auction: A public sale of goods or property through competitive bidding.
Auction Block: The podium or platform from which the auctioneer conducts the sale.
Auction Catalog: A comprehensive list of all items up for bidding in a particular auction.
Auction House: The company presenting an auction.
Auction Lot: A single item or group of items sold as a unit in an auction.
Auction with Reserve: An auction where items must meet a certain price set by the seller before being sold.
Auctioneer: The person who conducts the auction, describing items and calling for bids.
B
Bank Letter of Credit: A document certifying a bidder’s creditworthiness.
Bid: An offer to buy at a specific price.
Bid Caller: The person who actually “calls,” “cries” or “auctions” the property.
Bid History: A historical list of all bids made on a particular auction item.
Bid Increment: The minimum amount by which a bid may be raised.
Bidder Number: A unique number assigned to each registered bidder.
Bidder Registration: The process of providing identification and agreeing to auction terms before participating.
Buyer: Person or entity who has bought property at an auction.
Buyer’s Premium: An additional charge added to the hammer price, paid by the buyer.
C
Cashier: Auction worker who helps customers settle their auction balance and receive items.
Catalog: A publication describing the property available for sale at auction.
Clerk: The person who records sales during the auction.
Closing: The process of settling the sale of a piece of real estate.
Collusion: Unlawful practice of agreeing not to bid against one another to deflate value.
Competing Bid: Bids from various sources during a sale.
Commission: The fee charged to the seller by the auctioneer for providing services.
Condition Report: A description of an item’s condition, often used for valuable or vintage items.
Consignee: The auctioneer or auction house operator to whom goods are entrusted for sale.
Consignments: Privately owned items to be sold for the owner by the auction house for a fee.
Consignor: The person or entity that consigns goods to an auctioneer for sale.
D
Disclosure: Revealing known facts that sellers, bidders, and buyers need to make informed decisions.
Due Diligence: The process of investigating and gathering information about an item before bidding.
E
Escrow: Money held in trust by a third party until the seller delivers merchandise to the buyer.
Estate Auction: The sale of property left by a person at their death.
Estimate: The predicted price range that an item is expected to sell for.
Exclusive Right to Sale: An agreement giving the auctioneer the exclusive right to sell a property.
F
Fair Warning: The auctioneer’s courtesy announcement that the hammer is about to fall.
G
Grading: The process for determining the physical condition of an item.
H
Hammer Price: The final bid price when the auctioneer brings the hammer down.
High Bidder: The person who has placed the highest bid on an item.
Hybrid Auction: A combination of live and online auction.
I
Increment: Amount by which the auctioneer seeks to advance the bid for a lot.
Inspection: The period before the auction when potential buyers can examine the items.
Internet Bidding: Bids accepted online and executed as if the bidder were present.
L
Lien: An adverse claim or charge against an item used as collateral for a debt.
Live Auction: An auction that takes place in a physical location with in-person bidders.
Lot: A single item or group of items sold together in an auction.
M
Marketplace: A platform that brings together buyers and sellers.
Minimum Bid: The lowest acceptable price at which the seller agrees to complete the sale.
N
National Auctioneers Association: A U.S. association of individual auctioneers.
Next Allowable Bid: The lowest price you must bid to become the current highest bidder.
No Reserve: An auction in which there is no minimum acceptable price for an item.
No-Sale Fee: A charge paid by the owner when property doesn’t sell at a reserve auction.
O
Online Auction: An auction conducted entirely on an online platform.
Online Catalog: A digital preview of auction items available before the event.
On-site Auction: An auction conducted on the premises of the property being sold.
On-site Bidder: A bidder who is physically participating at the auction venue.
Opening Bid: The initial bid made by the auctioneer to start the bidding process.
Outbid: To submit a bid higher than another buyer’s maximum bid.
P
Paddle: A numbered card or device used by bidders to identify themselves when placing a bid.
Passed Lot: An item that does not sell during the auction because bids did not reach the reserve price.
Payment: The process of settling the amount owed for purchased items.
Personal Property: Items sold that are not real estate.
Phone Bids: Bids placed over the phone during an auction through a representative.
Preview: The designated time for potential buyers to inspect items before the auction.
Prices Realized: A list of prices at which all items from an auction were sold.
Private Treaty Sale: A private sale, not part of the auction.
Property: Item or items comprising an auction lot offered for sale.
Proxy Bid: A maximum bid left with the auctioneer to be executed in the bidder’s absence.
Purchase Price: The total of the hammer price, buyer’s premium, and applicable taxes or fees.
R
Raw Returns: Returned goods which were unprocessed by the retailer, sold in various conditions.
Registration: The process of obtaining a bid card and providing identification to participate in an auction.
Resale Certificate: Document showing that property is purchased for resale only.
Reserve Price: The minimum price that a seller is willing to accept for an item to be sold at auction.
Ringman: An auction assistant who helps spot bids and communicate with the auctioneer.
S
Sale Day: The actual day of the auction.
Secondary Market: The buying and selling of previously purchased and returned goods.
Seller’s Commission: A commission paid by a vendor to an auctioneer (not charged by all auction houses).
Shill: An illegitimate bidder who artificially inflates prices, usually working for the seller.
Showing: A preview period allowing participants to view items before the sale.
Silent Auction: An auction where written bids are placed instead of oral ones.
SMS Alerts: Text message notifications about bidding activity.
Starting Price: The likely starting bid for a given auction, set by the seller at the time of listing.
T
Tag Sale: A sale where items have set prices, often held in conjunction with an auction.
Terms and Conditions: The governing rules for a specific auction.
Tie Bids: When two or more bidders bid exactly the same amount at the same time.
Timed Auction: An online auction with a set end time.
Traditional Auction: An auction conducted in front of a live audience at a physical location.
U
Unit: See Lot. Item for sale.
W
Withdrawal: Removal of an item from auction before it is sold.
Withdrawn Lot: An item removed from an auction after it has begun.
Remember, specific auctions or auction houses may have additional terms or slight variations in meaning. Always review the terms and conditions of each auction you participate in to ensure you understand their specific rules and terminology.
