Auction Terminology 101: A Glossary of Key Terms
Auction terms can sound like a language of their own if you’re new to the process. Whether you’re registering to bid for the first time or getting ready to consign property, here’s a plain-language glossary of the terms you’ll hear most often at an Assiter Auctioneers sale.
Absentee Bid
A procedure which allows a bidder to participate in the bidding process without being physically present. A bidder submits an offer prior to the auction.
Absolute Auction
The property sells to the highest bidder regardless of price. There is no reserve price. This typically generates a much greater interest among potential buyers resulting in greater attendance at the auction, and a higher final sale price for the item being offered for sale.
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.”
Bid Increment
The minimum dollar amount that the current bid increases in price after each new bid.
Buyer's Premium
An amount (usually a percentage) that is added to the winning bid (hammer price) to determine the contract selling price which the buyer pays for the property being sold.
Choice
When selling choice, the auctioneer is offering more than one item up for auction at a time. The winning bidder then has the choice to take one item or multiple items. If the bidder wishes to take more than one item, the bid price will be multiplied by the amount of items the bidder chooses.
Extended/Dynamic Bidding
Auctions may extend the bidding time on any lot that gets a bid within a certain amount of time of its scheduled closing time.
Force Bid/Jump Bid
A bidding strategy by which a bidder increases the bid by more than the next accepted bid (placing your bid at $150 when the next accepted bid is $125).
Internet Only Auction
A timed auction where bids can only be placed over the Internet by Assiter Auctioneers bidders. No live bidding is taking place at a physical location.
Live Auction
An auction that takes place at a designated place and time, where bidders can browse the auction lots and place their bids in person.
Lot
A group of items or a single item that are sold together at auction. Lots are determined before the auction and only the auctioneer can divide a lot. Each lot in an auction is numbered.
Maximum Bid
The maximum amount you are willing to pay for a lot. The price will only increase by the minimum increment, but will automatically raise to your maximum bid as others bid up the lot over time.
Reserve Price
The lowest price the seller is willing to sell the item. If the reserve price is not met at the auction, the item will not be sold.
Simulcast Auction
Live and online interactive bidding at the same time.
Staggered Closing
Auctions that begin to close and progress at a certain rate of lots instead of at one specific time. For example, an auction will close five lots every five minutes beginning at a certain time. This will be listed in the terms of the auction.
Multi-Parcel Bidding System
The Multi-Parcel or “Multi-Par” system is a bidding system that allows selling in a combination format. It allows bidders to bid on individual lots or a combination of lots (usually parcels of land) throughout the auction. This system was developed to consolidate multiple bidding combinations and provide interested buyers the ability to configure their own combinations.
Have a term you’d like explained, or questions about an upcoming sale? Contact our team — we’re happy to walk you through the process.