Here is a list of the most common terms used in the auction industry.
A procedure which allows a bidder to participate in the bidding process without being physically present. A bidder submits an offer prior to the auction.
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.
The minimum dollar amount that the current bid increases in price after each new bid.
An amount (usually a percentage) that is added to the winning bid (hammer price) to determine the contract selling price which the buyer pays for the property being sold. The use of the buyer’s premium is so effective because it benefits both the buyers and the sellers. Sellers benefit because it helps to defray many of the expenses associated with conducting an auction. The buyer benefits because without the use of this tool, there may not have been an auction. The open and competitive bidding process might not exist if the buyer’s premium were not used to offset some of the auction related expenses.
When selling choice, the auctioneer is offering more than one item up for auction at a time. The winning bidder then has the choice to take one item or multiple items. If the bidder wishes to take more than one item, the bid price will be multiplied by the amount of items the bidder chooses.
Auctions may extend the bidding time on any lot that gets a bid within a certain amount of time of its scheduled closing time. The auction will remain open for those lots until no bids are placed in the allotted amount of time. All lots not receiving a bid in the final minutes will close at the normal time. The auctioneer will determine the number of minutes necessary to activate dynamic bidding ahead of time.
Internet Only Auction
A timed auction where bids can only be placed over the Internet by Assiter Auctioneers bidders. No live bidding is taking place at a physical location.
An auction that takes place at a designated place and time, where bidders can browse the auction lots and place their bids in person.
A group of items or a single item that are sold together at auction. Lots are determined before the auction and only the auctioneer can divide a lot. Each lot in an auction is numbered.
The maximum amount you are willing to pay for a lot. The price will only increase by the minimum increment, but will automatically raise to your maximum bid as others bid up the lot over time.
The lowest price the seller is willing to sell the item. If the reserve price is not met at the auction, the item will not be sold.
Live and online interactive bidding at the same time.
Auctions that begin to close and progress at a certain rate of lots instead of at one specific time. For example, an auction will close five lots every five minutes beginning at a certain time. This will be listed in the terms of the auction.