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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. |
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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.
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Absolute Auction
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. |
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Agent
A person who acts for or in the place of another individual or entity by authority from
them. |
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Appraisal
The act or process of estimating value.
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Auctioneer
A licensed or experienced auctioneer.
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"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." |
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Auction
A method of selling real estate in a public forum through open and competitive bidding.
Also referred to as: public auction, auction sale or sale. |
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Auction Block
The podium or raised platform where the auctioneer stands while conducting the auction.
"Placing (an item) on the auction block" means to sell something at auction.
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Auction Marketing
The method of marketing real property utilizing the auction method of sale.
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Auction Price
The price of a property obtained through the auction method of marketing.
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Auction Subject to
Confirmation
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. |
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Auction Value
The price which a particular property brings in open competitive bidding at public
auction. |
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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.
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Auction Without
Reserve
See Absolute Auction.
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Auctioneer
The person whom the seller engages to direct, conduct, or be responsible for a sale by
auction. This person may or may not actually call or cry the auction.
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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. |
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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. |
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Bid Assistants
Individuals who are positioned throughout the attendees at the auction to assist the
auctioneer, spot bidders and assist prospective bidders with information to help them in
their buying decision. Also known as ring men, bid consultants, bid spotters, or grounds
men. |
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Bid Caller
The person who actually "calls," "cries or "auctions" the
property at an auction, recognizing bidders and acknowledging the highest bidder. Commonly
known as the auctioneer. |
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Bid Rigging
The unlawful practice whereby two or more people agree not to bid against one another so
as to deflate value. |
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Bidder Number
The number issued to each person who registers at an auction.
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Bidder Package
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. |
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Bidder's Choice
A method of sale whereby the successful high bidder wins the right to choose a property or
properties from a grouping of similar or like-kind properties. After the high bidder's
selection, the property is deleted from the group, and the second round of bidding
commences, with the high bidder in round two choosing a property, which is then deleted
from the group and so on, until all properties are sold. |
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Broker Participation
An arrangement for third-party brokers to register potential bidders for properties being
sold at auction for a commission paid by the owner of the property or the auction firm.
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Buyer's Broker
A real estate broker who represents the buyer and, as the agent of the buyer, is normally
paid for his/her services by the buyer. |
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Buyer's Premium
An advertised percentage of the high bid or flat fee added to the high bid to determine
the total contract price to be paid by the buyer. |
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Catalog or Brochure
A publication advertising and describing the
property (s) available for sale at public
auction, often including photographs, property descriptions, and the terms and conditions
of the sale. |
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Caveat Emptor
A Latin term meaning "let the buyer beware." A legal maxim stating that the
buyer takes the risk regarding quality or condition of the property purchased, unless
protected by warranty. |
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Clerk
The person employed by the principal auctioneer or auction firm to record what is sold and
to whom and for what price. |
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Collusion
The unlawful practice whereby two or more people agree not to bid against one another so
as to deflate value or when the auctioneer accepts a fictitious bid on behalf of the
seller so as to manipulate or inflate the price of the property.
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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. |
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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. |
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Contract
An agreement between two or more persons or entities which creates or modifies a legal
relationship. |
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Cooperating Broker
A real estate broker who registers a prospective buyer with the auction company, in
accordance with the terms and conditions for that auction. The broker is paid a commission
only if his prospect is the high bidder and successfully closes on the property. Also
known as a participating broker. |
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Dual Agency
The representation of opposing principals (buyers and seller) at the same time. |
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Due Diligence
The process of gathering information about the condition and legal status of assets to be
sold. |
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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. |
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Hammer Price
Price established by the last bidder and acknowledged by the auctioneer before dropping
the hammer or gavel. |
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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.
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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. |
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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. |
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Minimum Opening Bid
The lowest acceptable amount at which the bidding must commence.
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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. |
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Opening Bid
The first bid offered by a bidder at an auction. |
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On-site Auction
An auction conducted on the premises of the property being sold.
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Participating Broker
See Cooperating Broker. |
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Preview
Specified date and time property is available for prospective buyer viewing and audits.
Also known as Open House or Inspection. |
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Regroup
A process used in real estate auctions where a bidder 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. |
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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. |
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Reserve Auction
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. |
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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. |
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Seller
Entity that has legal possession, (ownership) of any interests, benefits or rights
inherent to the real or personal property. |
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Subject to
Confirmation
See Reserve Auction. |
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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.
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Tie Bids
When two or more bidders bid exactly the same amount at the same time and must be resolved
by the auctioneer. |
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Trustee's Sale
A sale at auction by a trustee. |
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Withdrawal
Failure to reach the reserve price or insufficient bidding.
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