Source: National Auctioneers Association
Absentee Bid :: A procedure that 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 auction company. The particular rules and procedures of absentee bids are unique to each auction company.
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.
Appraisal :: A written or oral statement, independently objectively and impartially prepared by a qualified appraiser, prepared in accordance with generally accepted appraisal standards, setting forth an opinion of defined value of an adequately described asset, as of a specific date, supported by the presentation and analysis of relevant market information.
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.
Bid :: A prospective buyer's indication or offer of a price they are willing to 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 (aka High Bidder's Choice) :: A method of sale whereby the successful high bidder wins the right to choose an asset or assets from a grouping of similar or like-kind assets. After the high bidder's selection, the asset is deleted from the group, and the second round of bidding commences, with the high bidder in round two choosing an asset, which is then deleted from the group and so on, until all assets are sold.
Buyer's Premium :: An advertised percentage of the high bid added to the high bid to determine the total price to be paid by the buyer.
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.
Hammer Price :: Price established by the highest bidder and acknowledged by the auctioneer before dropping the hammer or gavel.
Reserve :: The minimum price that a seller is willing to accept for a property to be sold at auction. Also known as “reserve price”.
Tie Bids :: When two or more bidders bid exactly the same amount at the same time. This must be resolved by the auctioneer.