Auction Terms Glossary

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.

The act of or process of estimating value.

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.”

The person responsible for conducting a sale by auction.

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.

The successful high bidder wins the right to choose a property or properties from a grouping of similar or like-kind properties.

The interval pace by which an auctioneer increases the bidding price. The auctioneer decides the price of the first bid, which generally starts below the low estimate, and will incrementally increase each bid after.

The unlawful practice whereby two or more people agree not to bid against one another so as to deflate value.

Is a person who buys or contracts to buy goods, assets or merchandise at auction.

A percentage added on to your bid amount. Buyer premiums are used by many auction houses as a way of spreading the cost of the event with the people who benefit most from the opportunity to purchase; the buyer. It is an amount added to the high bid in addition to the high bid and payable by the buyer.

An additional document created by an artist or artist’s estate to be sold with their works. It typically includes the artist’s information and/or signature and identifies the materials, processes and techniques used to create an object.

Tangible personal property that is movable between locations, as opposed to immovable property such as real estate.

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.

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.

The owner who is transferring property to an auction house to act as agent on his or her behalf for sale.

An agreement between two or more persons or an entity which creates or modifies a legal relationship. The total obligation which results from the seller’s and buyer’s actions to sell and buy by auction.

The sale of property left by a person at his or her death. An estate auction can involve the sale of personal and/or real property.

This term refers to either an individual object or a group of objects that are offered for sale at auction as a single unit. Each lot is assigned a number in our catalog for easy identification during the auction.

The highest price in terms of money which a item or piece of property will bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.

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.

The procedure of submitting bids electronically by a mobile device or computer.

An auction conducted on the premises of the property being sold.

Be sure to take advantage of the preview times made available for you to look over the items being offered for sale. Many times, auction items are slightly used so you will want to know if there are any defects, such as loose or missing table legs, a vehicle that doesn’t start, or glassware that has chips or cracks. While these may be acceptable to you, it may affect the amount you want to bid, so look before you bid. You will feel much more confident if you do this.

The minimum price that a seller is willing to accept for a property to be sold at auction. Also known as the reserve price.

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. See also Auction with Reserve.

Entity that has legal possession, (ownership) of any interests, benefits or rights inherent to the real or personal property.

“Terms and Conditions” are something you will likely see at every auction you attend. They will vary a according to the type of commodity being sold and the auction company. What we are showing you here are some things that are typical and that you should know. Please be sure to check the Web site or on-site glossary for each individual auction.

“Terms and Conditions” are something you will likely see at every auction you attend. They will vary a according to the type of commodity being sold and the auction company. What we are showing you here are some things that are typical and that you should know. Please be sure to check the Web site or on-site glossary for each individual auction.