Auction Terms

You can buy and sell with confidence when you understand how auctions work.
Here are the key terms you need to know.

Basic Terms

Auction
A method of selling property through competitive bidding to determine market value.

Bid
An offer made by a buyer.

Buyer’s Premium
A percentage added to the winning bid to determine the final purchase price.

Deposit
Money paid by the winning bidder as a commitment to complete the purchase.

As-Is
Property is sold in its current condition. Buyers are responsible for inspections.

Absolute Auction
Sells to the highest bidder—no minimum, no reserve.

Reserve Auction
Seller has the right to accept or reject the final bid.

Auctioneer
The licensed professional conducting the auction.

Seller
The owner of the property being sold.

Buyer
The winning bidder who purchases the property.

Due Diligence
Buyer’s responsibility to inspect and research the property before bidding.

Terms & Conditions
Rules of the auction, announced prior to bidding.

Closing
Final transfer of ownership from seller to buyer.

On-Site Auction
Held at the property location.

Online Bidding
Bidding conducted through a digital platform.

Absentee Bid
A bid placed in advance by someone not attending the auction.