FAQ and Auction Terminology Guide

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"As Is:"

Also known as "as is, where is" and "in its present condition." Typically, this is a sign that no return privileges will be granted.

Auction:

A method of selling property in a public forum through open and competitive bidding. Also referred to as: public auction, auction sale

Auctioneer:

The person whom the seller engages to direct, conduct, or be responsible for a sale by auction. 

Bid:

A prospective buyer's indication or offer of a price he/she will pay to purchase property at auction. Bids are usually in standardized increments established by the auctioneer. 

Bid History:

A historical list of all the bids made on a particular auction during or after the auction.

Bid Increments:

The standardized amount an item increases in price after each new bid. The auction service sets the increment, which rises according to the present high bid value of an item.

Bidder Number:

The number issued to each person who registers at an auction.

Buyer's Premium:

An additional service charge, for which the buyer is responsible, may be added to the price of sold items. If so, this will be indicated on the item page.

Catalog 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 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.

Consignee:

The auctioneer or auction house operator to whom goods are entrusted by another (consignor) for sale at auction.

Consignor:

The person or authorized agent or entity that consigns goods to an auctioneer. The consignor is usually the seller. 

Estate Auction:

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

Hammer Price:

The hammer price is the winning bid for a lot at auction. It is the price upon which the auctioneer's hammer falls, determining the sale price, but does not include the buyer's premium.

Lot:

An item or set of items for sale in an auction, lots are normally denoted by a "lot" number.

National Auctioneers Association:

A U.S. association of individual auctioneers united to maintain ethical standards for the auction profession; promote the enactment of just and reasonable laws, ordinances and regulations affecting auction selling; make the public more aware of the advantages of auction selling; and generally, improve the business conditions affecting the auction profession.

Online/Virtual Auction:

An auction that is for online bidders only and is not conducted in front of a traditional live audience. These auction types may have reserve items in which the auctioneers bid in order to protect the reserve.

On-site Auction:

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

Outbid:

To submit a maximum bid that is higher than another buyer's maximum bid.

Preview:

Specified date and time a property is available for prospective buyer viewing and audits in advance of the sale. Also known as open house or inspection.

Reserve or Reserve Price:

The minimum price that a seller is willing to accept for an item to be sold at auction. This amount is never formally disclosed.

SMS Alerts:

Alerts sent via text message to your mobile device to inform you when another bidder has placed a bid on an item.

Starting Price:

The likely starting bid for a given auction, set by the seller at the time of listing.

Traditional Auction:

An auction that is conducted in front of a live audience at a physical location where the items for sale are located.