Auction Terminology

ABSOLUTE AUCTION: This is the most aggressive in producing interest in the property. The property is sold to the highest bidder with no limiting conditions or amount regardless of price. The Seller must be prepared to accept the market valuation on auction day which is determined by the bidding. The Buyers can be assured their time and effort is justified knowing the property will be sold.

AUCTION WITH RESERVE: Also known as "Reserve Auction" or "Auction Subject to Confirmation". An auction in which a Seller reserves the right to establish an unpublished reserve price, accept or decline any and all bids, or to withdraw property at any time prior to an announcement of the completion of the sale by the Auctioneer. This method offers some protection to the Seller and may reduce the appeal of the auction which typically results in lower sales prices than the Absolute Auction.

MINIMUM BID: Is similar to a Reserve Auction although in a Minimum Bid Auction, the reserve price is published and announced as the minimum starting bid that would be accepted.

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.

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/she will pay for a given property.

"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 or judging the property for their own protection. Otherwise known as "As Is, Where Is" and "In Its Present Condition".

TERMS AND CONDITIONS: The printed rules of the auction and certain aspects of the Purchase and Sale Agreement that are Read and/or distributed to potential bidders prior to an auction sale.

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 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 "Ringman", "Bid Consultants Groundsman".

BIDDER NUMBER: The number issued to each person who is registered to bid at the auction.

BIDDER PACKAGE: The package of information and instructions pertaining to the property to be sold at an auction event obtained by the prospective bidders at an auction or prior to the auction, sometimes called a "Bidder Package" or "Due Diligence Package".

BIDDERS CHOICE: A method of sale whereby the successful higher bidder wins the right to choose a property or properties from a grouping of a similar or like-kind properties/items. After the higher bidder’s selection, the property/item is deleted from the group, and the second round of bidding commences, with The higher bidder in round two selecting a property/item. That property/item is then deleted from the group, and a Third round begins, continuing until all properties/items are sold.

BID: A prospective Buyer’s indication or offer of a price he/she will pay to purchase property at auction. Bids are usually in standardized increments established by the Auctioneer.

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