Terminology

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.

Absentee Bidder
A person (or entity) that is not present at the auction but submits, in advance, a written bid that is the top price they will pay for a given asset.

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. Also known as an “auction without reserve.”

Appraisal
The act or process of estimating value.

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.”

Auction
A method of selling property in a public forum through open and competitive bidding. Also known as “public auction” or “auction sale.”

Auction Value
(See “Fair Market Value”)

Auction With Reserve or Minimum
An auction in which the seller or his agent reserves the right to accept or decline any and all bids. A minimum acceptable price may or may not be disclosed and the seller reserves the right to accept or decline any bid within a specified time.

Auction Without Reserve or Minimum
(See “Absolute Auction”)

Auctioneer
The person whom the seller engages to direct, conduct, or be responsible for a sale by auction. This person may or may not actually call or “cry” the 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.

Bid Assistants
Individuals of a live auction team whose primary responsibility is to accurately interpret and effectively communicate buyer participation to their auctioneer. They should also be qualified to assist prospective bidders with the necessary information to make a better informed buying decision. Also known as “ringmen”, “bid spotters” or “sales assistants.”

Bidder Number
The number issued to each person who registers at an auction.

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. Also known as “Buyer’s Choice.”

Buyer’s Premium
An advertised percentage of the high bid added to the high bid to determine the total contract price to be paid by the buyer.

Clerk
An individual employed by the principal auctioneer or auction firm to record what is sold and to whom and for what price.

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.

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. Also known as “Terms & Conditions”.

Contract
An agreement between two or more persons or entities which creates or modifies a legal relationship.

Consign
To enter a contract with the auction company to sell assets at public auction or private sale for a fee based on a commission/percentage of the final sale price.

Estate Auction
(See “Multi-Seller Auction”)

Estimate
Presale estimate of value established to stimulate presale interest.

Fair market value
Price established through the competitive bid process with a willing buyer and willing seller, in a well-advertised auction.

Live Auction
A way to bid in real time at auctions conducted in the auction center.

Live Online Auction
A way to bid in real time at auctions conducted in the auction center and online simultaneously.

Minimum Opening Bid Auction
An auction in which the auctioneer will accept bids at or above a disclosed price. The minimum price is always stated in the brochure and advertisements and is announced at the auctions.

Multi-Seller Auction or Consignment Auction
Property or properties owned by multiple sellers (living or deceased), offered through a common promotional campaign and auctioned in a single event. Takes place on the premises of the Sanford Alderfer Companies or specified location.

No-Sale Fee
A charge paid by the seller of property offered at a reserve auction when the property does not sell. (See “Withdraw/Pass”)

Online Only Auction
An auction that takes place over an extended period of time and all bidding takes place on the internet.

On-Site Auction
An auction conducted on the premises of the property being sold.

Preview
Specified date and time property is available for prospective buyer viewing. Also known as “Open House” or “Inspection.”

Reserve
The minimum price that a seller is willing to accept for a property to be sold at auction. Also known as “reserve price.”

Sealed Bid
A method of sale whereby confidential bids are submitted to be opened at a predetermined place and time.

Seller
Entity that has legal possession (ownership) of any interests, benefits or rights inherent to the property.

Terms and Conditions
The rules of the auction and certain aspects of the Purchase & Sale Agreement that are read and/or distributed to potential bidders prior to an auction sale.

Withdraw/Pass (No Sale)
Failure to reach the reserve price or insufficient bidding.