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Absentee Bidder
A person (or entity) that does not attend the
auction but submits, in advance, a written or oral bid
that is the top price he or she will pay for a given
asset.
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, and T.V. 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.
Appraisal
The act or process of estimating value.
“As Is”
Selling the asset without warranties as to the
condition and/or the fitness of the asset for a
particular use. Buyers are solely responsible for
examining and judging the asset for their own
protection. Otherwise known as ‘As Is, Where Is” and “In
its Present Condition”.
Auction
A method of selling an asset in a public forum
through open and competitive bidding.
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 Marketing
The method of marketing an asset utilizing the
auction method of sale.
Auction Value
The price which an asset brings in open and
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 bid may or may not be disclosed and
the seller reserves the right to accept or decline any
bid within a specified time.
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.
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 bidder’s indication or offer of a price he or she
will pay to purchase an asset at auction. Bids are
usually in standardized increments established by the
auctioneer.
Bidder Assistants
Individuals who are positioned throughout the
attendees at an auction to assist the auctioneer, spot
bidders and assist prospective bidders with information
to help them in their buying decision.
Bidder Number
The number assigned to each person who registers at
an auction. This number is used in making a record of
purchases by a bidder at an auction.
Bidder Package
The package of information and instructions
pertaining to the asset to be sold at auction obtained
by prospective bidders at the auction. Sometimes called
a bidder packet or a due diligence package.
Buyer’s Premium
An advertised percentage of or flat fee added to the
high bid to determine the total sales price to be paid
to the buyer.
Carrying Charges
The costs involved in holding an asset which is
intended to produce income but has not yet done so.
Clerk
The person employed by the principal auctioneer or
auction firm to record what is sold, to whom it was sold
and for what price.
Commission
The fee charged to the seller by the auctioneer for
providing services, usually a percentage of the gross
selling price of the assets offered established by
contract (the auction listing agreement) prior to the
auction.
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 other
limiting factors of an auction. Usually included in the
published advertisements or announced by the auctioneer
prior to the start of an auction.
Contract
An agreement between two or more persons or entities
which creates or modifies a legal relationship.
Due Diligence
The process of gathering information about the
condition and legal status of assets to be sold.
Market Value
The highest price in terms of money which an asset
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.
No-Sale Fee
A charge paid by the owner of asset(s) offered at a
reserve auction when the property does not sell.
Opening Bid
The first bid offered by a bidder at an auction.
Reserve
The minimum price that a seller is willing to accept
for a property to be sold at auction. Also known as
reserve auction.
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 asset any time prior to the
announcement of the completion of the sale by the
auctioneer.
Sealed Bid
A method of sale utilized where confidential bids
are 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.
Seller
Entity that has legal possessions (ownership) of any
interests, benefits or rights inherent to an asset.
Terms and Condition
The printed rules of the auction that are read
and/or distributed to potential bidders prior to an
auction. |
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