Auction Terminology

Absentee Bid: For in-person auctions, if you are unable to attend, you may leave an absentee bid. This is a bid in writing, left with the auctioneer prior to the auction. The auctioneer will then bid on your behalf up to your maximum. Absentee bid policies vary by auctioneer, so always be sure to confirm in advance. 

Appraisal: An opinion of value of an item based on the appraiser’s experience and research. Anchor Auction provides appraisal services, which is further explained here.

As Is, Where Is: Personal property is typically sold at auction without warranties or guarantees of any type as to the condition and/or the fitness of the property for a particular use. All buyers are solely responsible for examining and judging the property prior to bidding to make their own determinations. Property is also sold “where is”, meaning the buyer and the buyer alone are responsible for removal and moving of the item. Delivery, loading, and/or shipping are not included.

Auction Block: The raised platform or podium where the auctioneer conducts the auction.

Auction with Reserve / Reserve Auction: If a seller has a minimum price they are willing to accept for an item, this is the reserve price. The seller reserves the right to refuse any bid or offer below the reserve price. Typically this means if the reserve price is NOT met, the item does not sell, though sometimes the seller and the high bidder are able to come to an agreement. This is solely at the discretion of the seller, however.

Absolute Auction / Auction Without Reserve: An auction where the property is sold to the highest qualified bidder with no limiting conditions or amount. At an absolute auction, the seller may not bid, nor may anyone acting as their agent (unless it is a court-ordered sale).

Bid Assistants / Ring Men / Ring People: These are auction staff who assist the auctioneer in spotting bids during in-person auctions.

Bidder’s Choice / Buyer’s Choice: A method of sale where a grouping of similar or like-kind properties are offered together. Bidders are bidding on their choice of one of the items. Once a high bid is reached, that buyer makes their selection of one or more. Their final bid is multiplied times the number of items they select. Bidding is reopened on the remaining items until all have been purchased.

Buyer’s Premium: A percentage added to the final hammer price / bid. This fee typically goes to the auctioneer for their services. For example, if an item sells for $100 and there is a 10% buyer’s premium, the final price would be $110.

Cashier: The person who issues bidder numbers and accepts payment for auction purchases.

Catalog: A list of items being offered at an auction. The catalog will typically contain photographs, the lot number, and any other relevant information about the item.

Clerk: The person who is responsible for tracking and recording the hammer prices and buyer information for each lot.

Estate Auction: The sale of property left by a person at their death. A person’s estate can include anything from household good, vehicles, and other property, to homes, land, commercial real estate, etc.

Hammer Price: When the highest bid is accepted and the auctioneer declares the item sold, this is the hammer price. The final price paid is the hammer price plus any buyer’s premium and sales tax (if applicable).

Online Auction: An auction held entire online. Bidders are able to review the catalog in advance, and either bid in real time, or bid their maximum price in advance, allowing the system to bid on their behalf up to their maximum.

On-site Auction / In-person Auction: An auction conducted on the premises of the property being sold, an auction house, or an offsite location, with bidders attending in person.

On the Block: The item that is currently being offered.

Opening Bid: The first bid offered by a bidder at an auction. This is often an offer suggested by the auctioneer, but may be lower.

Preview: The preview is the time designated by the seller(s) and/or auctioneer for prospective bidders to come see the auction items in person for their inspection.

Seller: The person, estate, or other legal entity that has legal possession, ownership, and / or rights to offer real or personal property for sale.

Soft Close: For online auctions with a soft close, if any bid is placed within the final minutes before an item’s closing time (typically 1-5 minutes), additional time is added to the bidding time (typically 1-3 minutes). This allows other bidders a fair chance to place a counter bid. For example: If an auction lot is set to close at 6:00 PM, but a bid is placed at 5:59 PM, the soft close might extend the bidding period to 6:03 PM, giving other bidders additional time to counter. These features promote fair competition, ensuring bidders have the opportunity to participate without missing out due to timing constraints.

Staggered Close: For online auctions, this means the items’ closing times are spread out, rather than all ending at the same time. For example, lots may close one at a time, every two minutes. This helps bidders manage bids on multiple items without having to watch multiple items simultaneously.

Terms and Conditions: These are the rules, policies, declarations, etc. for the auction, such as how bidding will be conducted, down payment and closing timeframes for real estate, whether the sellers and/or auction staff reserve the right to also bid, etc. These can vary considerably from auction to auction, so always be sure to review the terms and conditions for each sale prior to bidding, as they are legally binding once you bid.

Tie Bids: When two or more bidders bid exactly the same amount at the same time. It is up to the auctioneer’s discretion how this is resolved.