Common Auction Terminology

Sometimes the terminology used at the sale and on the sale bills can get a little confusing.  Here's a list of some common auction terminology to help you with the "lingo"....

Absolute Auction
A property is sold to the highest bidder with no minimum or reserve price.

Appraisal
A qualified opinion of value for an item.

As is, Where is
The property is sold as it is currently and where it is currently.

Auction
A public sale in which items are sold to the highest bidder.  Latin word meaning the advance of bids.

Bid
A buyer's indication of the price they are willing to pay at that point to purchase an item.

Buyer
The person who is the winning bidder on an item.

Buyer's Agent
A real estate agent who is employed by and represents only the buyer in a transaction, regardless of whether the commission is paid by the buyer or the seller or through a commission split with the listing agent.

Buyer's Premium
An additional charge, usually expressed in the form of a percentage of the highest bid, paid by the purchaser of the property.

Buyer Number
Card with number issued to person who has registered at an auction.

Chant/Crying
Can also be referred to as bid calling.  The vocal announcement of the auctioneer to the buyers.

Clerk
Person who records price, item, and buyer from auctioneer.

Consignor
Person who brings merchandise to be sold at auction.

Earnest Money
A small percentage of the listing price in the form of a cashier's or certified check that is presented by a bidder when he or she registers on auction day.  The earnest money will be credited towards the final purchase price.

Estate Auction
An auction where the items of a deceased person are sold.

Lot:
(1) Item in catalog or items sold together.  (2) Number assigned to consignor to identify on clerking tickets.

Market Value
The price a property brings on auction day.  In other words, what the general public is willing to pay.  The auctioneer starts out asking market value.

Reserve
The lowest or minimum price that a seller will accept for merchandise.

Ringman
Person who is hired to assist the auctioneer in spotting bids.

Silent Auction
Term used to describe the bidding process of written bids which can be raised in writing.  Usually held at charity events.

Tie Bid
Situation where two buyers bid the same price at the same time.  Resolved by the auctioneer.