Absentee Bid

Absentee Bidder

A person (or entity) who 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. Indiana auction law does not allow for an absolute auction.  Items may be removed from an auction until an auctioneer says sold.

Accounting of Sale

A report issued to the seller by the auctioneer detailing the financial aspects of the 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 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 property 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 Price

The price of a property obtained through the auction method of marketing.

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.

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.

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.

Bidder 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 an item or items from a grouping of similar or like-kind items. After the high bidder's selection, the item is deleted from the group, and the second round of bidding commences, with the high bidder in round two choosing an item(s), which is then deleted from the group and so on, until all items are sold.

Bookkeeper or Clerk

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

Box Lot

Typically comprised of similar items.  Box lots are typically sold as “everything in the box” for the high bid price.

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.

Caveat Emptor

A Latin term meaning "let the buyer beware." A legal maxim stating that the buyer takes the risk regarding quality or condition of the property or item purchased, unless protected by warranty.

Clerk

The person employed by the principal auctioneer or auction firm to record what is sold and to whom and for what price.

Collusion

The unlawful practice whereby two or more people agree not to bid against one another so as to deflate value or when the auctioneer accepts a fictitious bid on behalf of the seller so as to manipulate or inflate the price of the property.

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.

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 any other limiting factors of an auction. Usually included in published advertisements or announced by the auctioneer prior to the start of the auction.

Consignor

One who places items along with others in a specific auction.

Estate Sale

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

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 and assuming the price is not affected by undue stimulus.

Minimum Bid Auction

An auction in which the auctioneer will accept bids at or above a disclosed price. The minimum price is always stated in the brochure and advertisements and is announced at the auctions.

Minimum Opening Bid

The lowest acceptable amount at which the bidding must commence.

Multi-Seller Auction

Auctions comprised of items owned by many sellers, offered through a common promotional campaign are auctioned in a single event.

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.

No-Sale Fee

A charge paid by the owner of property offered at a reserve auction when the property does not sell.

Opening Bid

The first bid offered by a bidder at an auction.

On-site Auction

An auction conducted on the premises of the property being sold.

Preview

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

Reserve

The minimum price that a seller is willing to accept for a property to be sold at auction. Also known as the reserve price.

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 property at any time prior to the announcement of the completion of the sale by the auctioneer. See also Auction With Reserve.

Seller

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

Subject to Confirmation

See Reserve Auction.

Terms and Conditions

The printed rules of the auction and certain aspects of the Purchase & Sale Agreement that are read and/or distributed to potential bidders prior to an auction sale.

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.