Glossary of terms
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A procedure which allows a bidder to participate in the bidding process without being physically present. Generally a bidder submits an offer prior to auction. Absentee bids are usually handled under an established set of guidelines by the auctioneer or his representative. The particular rules and procedures of absentee bids are unique to each auction company.
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.
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 the their own protection. Otherwise known as "As Is, Where Is" and "In its Present Condition."
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.
A prospective buyer's indication or offer for a price he or she will pay to purchase property at auction. Bids are usually in standardized increments established by the auctioneer.
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 decisions. Also known as ring-men, bid consultants, bid spotters, or groundsmen.
The unlawful practice whereby two or more people agree not to bid against on another so as to deflate value.
The number issued to each person who registers at an auction.
The package of information and instructions pertaining to the property to be sold at an auction event obtained by prospective bidders at an auction. Sometimes called
a bidder packet or due diligence package.
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 owner.
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.
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 rpice is not affected by undue stimulus.
The first bid offered by a bidder at an auction.
Specified date and time the property is available for prospective buyer viewing and audits. Also known as Open House or Inspection.
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.
The period of time that an agreement is in effect.