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AUCTION
TERM |
DEFINITION |
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AARE
(Accredited Auctioneer, Real Estate) |
The professional
designation awarded by the Auction Marketing
Institute qualified real estate auctioneers
who meet the educational and experiential
requirements of the Institute and who adhere
to a strict code of ethics and standards of
practice. |
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Absentee
Bid |
A procedure
which 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 his representative. The
particular rules and procedures of absentee
bids are unique to each auction company. |
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Apprentice Auctioneer |
An auctioneer
who is in training, operating under the
supervision of a licensed or experienced
auctioneer. |
|
Auction
Block |
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. |
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Auction
With Reserve |
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. |
|
Bid |
A prospective
buyer's indication or offer of a price he or
she will pay to purchase property at
auction. Bids are usually in standardized
increments established by the auctioneer. |
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Bid
Assistant |
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
decision. Also known as ringmen, bid
consultants, bid spotters, or groundsmen |
|
Bidder
Number |
The number
issued to each person who registers at an
auction. |
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Bidder's
Choice |
A method of sale
whereby the successful high bidder wins the
right to choose a property or properties
from a grouping of similar or like-kind
properties. After the high bidder's
selection, the property is deleted from the
group, and the second round of bidding
commences, with the high bidder in round two
choosing a property, which is then deleted
from the group and so on, until all
properties are sold. |
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Buyer's
Premium |
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 buyer. |
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CAI |
Certified
Auctioneers Institute. The professional
designation awarded to practicing
auctioneers who meet the experiential,
educational and ethical standards set by the
Auction Marketing Institute, Inc. |
|
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. |
|
Hammer
Price |
Price
established by the last bidder and
acknowledged by the auctioneer before
dropping the hammer or gavel. |
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Listing
Broker |
A real estate
broker who has a listing on a property and
cooperates with the auction company by
allowing the auction agreement to supersede
his/her listing agreement. |
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Minimum
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. |
|
Opening
Bid |
The first bid
offered by a bidder at an auction. |
|
On Site
Auction |
An auction
conducted on the premises of the property
being sold. |
|
Reserve |
The minimum
price that a seller is willing to accept for
a property to be sold at auction. Also known
as the reserve price. |
|
Reserve
Auction |
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. See also Auction With
Reserve. |
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Sealed
Bid |
A method of sale
utilized where confidential bids are
submitted to be opened at a predetermined
place and time. Not a true auction in that
it does not allow for reaction from the
competitive market place. |
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Tie Bids |
When two or more
bidders bid exactly the same amount at the
same time and must be resolved by the
auctioneer. |
