Here's a glossary of common auction terms to help you understand the process better:
1. Absentee Bid:
· A bid placed by a buyer who is unable to attend the auction in person. This bid is usually submitted in advance and executed by the auctioneer on behalf of the absentee bidder.
2. Absolute Auction:
· An auction in which the property is sold to the highest bidder regardless of the bid amount, with no minimum or reserve price.
3. As-Is:
· Indicates that the property is being sold in its current condition with no warranties or guarantees from the seller regarding its quality or fitness for use.
4. Bid:
· An offer made by a prospective buyer to purchase the property at a specific price during the auction.
5. Bid Increment:
· The minimum amount by which the auctioneer will raise the bidding price during the auction.
6. Bidder Number:
· A unique number assigned to each participant in the auction, used to identify and track bids.
7. Buyer’s Premium:
· An additional fee paid by the winning bidder on top of the bid price, usually calculated as a percentage of the final bid amount. This fee is typically paid to the auction house.
8. Catalog:
· A listing or brochure that describes the items or properties up for auction, including details such as descriptions, photographs, and auction terms.
9. Clerk:
· The individual responsible for recording the bids and managing the administrative details of the auction.
10. Commission:
· The fee paid to the auctioneer or auction house, usually a percentage of the sale price, for conducting the auction.
11. Hammer Price:
· The final bid price at which the auctioneer's hammer falls, indicating that the item has been sold.
12. Opening Bid:
· The first bid made in an auction, which may be set by the auctioneer or placed by a bidder.
13. Outbid:
· When one bidder places a higher bid than another, effectively outbidding them.
14. Proxy Bid:
· Similar to an absentee bid, a proxy bid is made by someone authorized to bid on behalf of another person who cannot attend the auction.
15. Reserve Price:
· The minimum price that a seller is willing to accept for the property. If the bidding does not reach this price, the property will not be sold.
16. Ringman:
· An assistant to the auctioneer who helps spot bids from the audience and communicates them to the auctioneer.
17. Sealed Bid Auction:
· An auction in which all bids are submitted in writing and are confidential until the auction closing date. The highest bid wins.
18. Starting Price:
· The initial price at which bidding begins, often set by the auctioneer.
19. Subject to Confirmation:
· A term indicating that the sale is not final until the seller approves the highest bid, usually applicable in auctions with a reserve price.
20. Terms and Conditions:
· The rules governing the auction, including payment terms, bidding requirements, and any special conditions of sale.
21. Winning Bid:
· The highest bid accepted by the auctioneer, which results in the sale of the property to the bidder who placed it.
22. Withdrawn:
· When an item or property is removed from the auction before it is sold, usually by the seller or auctioneer.
23. Yard Sale:
· An informal auction term sometimes used to refer to the sale of miscellaneous items at an auction.