Auction Glossary of Terms

Auction Block? Back Up Bidder? Gavel? Podium? The list goes on! A complete guide to all words related to the auction profession.

Glossary of Auction Terms 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) that 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. 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. Advertising Non-personal, paid communication such as newspaper, radio, direct mail, websites, bill boards, email campaigns and TV directed toward the general public or, in some cases, specific prospective client groups to provide information about the time, place, contents, and arrangements of an auction. Agent A person who acts for or in the place of another individual or entity by authority from them. "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 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. 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. 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 Marketer / AIC Auctioneer In Charge An individual who contracts with sellers for the auction method of marketing property. In the case of real property, he or she may not actually conduct the sale but is directly responsible for all aspects of marketing the property. Auction Marketing The method of marketing real property utilizing the auction method of sale. Auction Subject to Owner Confirmation (See "Reserve Auction”) 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. Auction without Reserve (See "Absolute Auction")

Auctioneer The person whom the seller engages to direct, conduct, or is responsible for a sale by auction. This person may or may not actually call or cry the auction. 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. A bid is a legal, binding contract between the bidder and 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 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. 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. Bid Rigging 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 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. 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. 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. Buyer Is a person who buys or contracts to buy goods, assets or merchandise at auction. Buyer’s Broker A real