The following is a glossary of real estate auction terms developed by the National Auctioneers Association in cooperation with the National Association of Realtors - Real Estate Auction Committee.
|
AUCTION TERM
|
DEFINITION |
|
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. |
|
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. |
|
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. |
|
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. |
|
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. |
|
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. |
|
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. |
|
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. |
|
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. |
|
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. |
|
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. |
|
Tie Bids |
When two or more bidders bid exactly the same amount at the same time and must be resolved by the auctioneer. |
For more information on Real Estate Auctions, please feel free to visit Broker Auction Team