| 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. |
| 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. |
| Accounting of Sale |
A report issued to the seller by the auctioneer detailing the financial aspects of the auction. |
| Agent |
A person who acts for or in the place of another individual or entity by authority from them. |
| Appraisal/ Valuation |
The act or process of estimating value. |
| "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." |
| 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. |
| Auction Price |
The price of a property obtained through the auction method of marketing. |
| Auction Value |
The price which a particular property brings in open competitive bidding at public auction. |
| Auction With Reserve |
An auction in which the seller or his agent reserves the right to accept or decline any and all bids. A minimum acceptable price may or may not be disclosed and the seller reserves the right to accept or decline any bid within a specified time. |
| Ballroom Auction |
An auction of one or more properties conducted in a meeting room facility. |
| Bank Letter of Credit |
A letter from a bank certifying that a named person is worthy of a given level of credit. Often requested from prospective bidders or buyers who are not paying with currency at auctions. |
| 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. |
| Bid Acknowledgment |
A form executed by the high bidder confirming and acknowledging the bidder's identify, the bid price and the description of the property. Also known as Memorandum. |
| Bid Rigging/ Ringing |
The unlawful practice whereby two or more people agree not to bid against one another so as to deflate value. |
| Bidder Number |
The number issued to each person who registers at an auction. |
| Bidder Pack |
The package of information and instructions pertaining to the property to be sold at an auction event obtained by prospective bidders at an auction. Sometimes called a bidder packet or due diligence package. |
| Carrying costs |
The costs involved in holding a property which is intended to produce income (either by sale or rent) but has not yet done so, i.e., insurance, taxes, maintenance, management. |
| Catalogue or Brochure |
A publication advertising and describing the property(ies) available for sale at public auction, often including photographs, property descriptions, and the terms and conditions of the sale. |
| Commission |
The fee charged to the seller\buyer 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. |
| Conditions of Sale |
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. Usually included in published advertisements or announced by the auctioneer prior to the start of the auction. |
| Due Diligence |
The process of gathering information about the condition and legal status of assets to be sold. |
| Estate Sale |
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. |
| Hammer Price |
Price established by the last bidder and acknowledged by the auctioneer before dropping the hammer or gavel. |
| Listing Broker |
A real estate broker who has a listing on a property and cooperates with the auction company by allowing the auction agreement to supersede his/her listing agreement. |
| Market Value |
The highest price in terms of money which a 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. |
| 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 promotional campaign are auctioned in a single event. |
| Opening Bid |
The first bid offered by a bidder at an auction. |
| On-site Auction |
An auction conducted on the premises of the property being sold. |
| Preview |
Specified date and time property is available for prospective buyer viewing and audits. Also known as Open House or Inspection. |
| Regroup |
A process used in real estate auctions where the auctioneer has the opportunity to combine several parcels of land previously selected by other bidders, thereby creating one larger parcel out of several smaller parcels. This process is often used in conjunction with bidder's choice. |
| 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. |
| Sealed Bid |
A method of sale utilized where confidential bids are submitted to be opened at a predetermined place and time. Not a true auction in that it does not allow for reaction from the competitive market place. |
| Terms |
The period of time that an agreement is in effect. |
| 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. |
| Tie Bids |
When two or more bidders bid exactly the same amount at the same time and must be resolved by the auctioneer. |
| Trustee's Sale |
A sale at auction by a trustee. |
| Withdrawal |
Certain properties can be withdrawn from auction due to various reasons. |
