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

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.

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. Also known as auction subject to conormation and reserve auction.

Apprentice Auctioneer
An auctioneer who is in training, operating under the supervision of a licensed or experienced auctioneer.

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 with reserve.

“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.  Other wise known as “As Is, Where Is” and “In Its Present Condition.”

AIC
Auctioneer In Charge. The person designated by the auction company who is responsible for organizing the details of an auction.

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.

Agent
A person who acts for or in the place of another individual or entity by authority from them.

Appraisal
The act or process of estimating value.

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.

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 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 referred to as ground men.

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

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.

Bookkeeper or Clerk
The person who is responsible for the accounting and paperwork at an auction sale.

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’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.

Carrying Charges
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.

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.

Closing
Time and place for the exchange of money for ownership.  Generally handled by the title company or an attorney.

Contract
An agreement between two or more persons or entities which create or modify a legal relationship.

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

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.

National Auctioneers Association
An association of individual auctioneers united to promote the mutual interests of its members; formulate and 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.

On-site Auction
An auction conducted on the premises of the property being sold.  Majority of properties are sold on site.

Opening Bid
The first bid offered by a bidder at an auction.

Preview
Specified date and time property is available for a prospective buyer viewing and audits.   Also know as Open House or Inspection.

Referring Broker
A real estate broker who does not have a listing on a property, but refers the auction company to a potential seller for an auction.  Usually earns a flat fee commission for referring product to an auction company.

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.

Seller
Entity that has legal possession, (ownership of any interests, benefits or rights inherent to the real or personal property.

Tax Sale
Public sale of property at auction by governmental authority, due to nonpayment of property taxes.

Terms
The legal terms that govern the conduct of an auction, including acceptable methods of payment, terms, buyers 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.

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.