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Auction Terminology
Absentee Bids
You can bid on an item without attending an auction personally by submitting
an "absentee bid". The bid is submitted on an item prior to the auction
starting by whatever means the auctioneer has specified.
Absolute Auction
Absolute auctions are won by the highest bidder without any limitations or
reserve prices being imposed
American Auction
This type of auction has a number of items offered at the same price, the
highest bid for the most items wins the bidding.
Appraisal
When an item is valued or confirmed by an auctioneer it is known as an
appraisal the person doing appraisals may also be known as an appraiser.
Auction House
Usually refers to auctioneers who hold auctions at their own premises, the
company is referred to as an auction house.
Auction
An auction is a public sale in which the price is determined by bidding, and
the item is sold to the highest bidder. To participate in an auction means
to bid to obtain an item. The person who offers the highest bid wins the
right to purchase the item at that price.
Auctioneer
The person who conducts an auction sale
Automatic Bid
It allows you to decide the maximum amount you are willing to pay for an
item. This way, your bids will be automatically increased by our software to
the next acceptable bid increment should someone outbid your initial bid.
Banned
When a person or persons disrupt auctioneer, disregard policies, or does not
honor their bid they are subject disqualification and are not allow to
participate in current and/or future auctions.
Bid
A bid is the offer of a specific amount of money on an item for sale. The
bidder competes with other potential buyers, keeping in mind that the buyer
with the highest bid is obliged to complete the purchase with the seller.
Hence, a bid is the price you, the bidder, are willing to pay for an item up
for auction.
Bid increment
It is the amount by which each bid increases. You, the seller, sets this
amount. We recommend that if the reserve price (the minimum amount you are
willing to accept for your item) is high, the bid increments should be
large, and vice versa.
Buyer’s Premium
An additional fee charged in addition to the final bid on each item to
offset the handling fee by the auction company.
Catalogue
List of item to be auctions during a live auction.
Catalogue Auctions
These auctions are usually held in a location different to where the actual
goods for auction are kept. Viewing of the goods will have taken place prior
to the auction.
Cutting the Bid
The act of interrupting the auctioneer in an attempt to set their own price.
This is considered rude and can lead to being banned form future auctions.
Dutch Auction
An auction where a seller has listed multiples of the same item. All winning
bidders pay only the lowest successful winning bid amount.
Hammer Price
The price reached by the auctioneer when the hammer or gavel is dropped.
On Site Auctions
If a company has gone into liquidation and its assets are to be sold at
auction that auction sometimes will take place at the company site rather
than at an auction house , this is done when it is not practical to
transport the goods to the sale the goods are sold "On site".
Online Catalogue
The auctioneers often place details of the lots for auction on their
website. This can be in HTML, i.e.. as a web page, or can be a file made
available to you for download. During a live auction you are provided with a
catalogue prior to the start of the auction
Private Auction
Bidders identities are not disclosed in this type of auction.
Proxy Bidding
Submitting a confidential maximum bid to an auction service. The auction
will automatically increase the bid to maintain the high bid. The proxy
bidding will stop when the bid has won the auction or reached the limit of
the proxy bid.
Registration
The act of listing your name, address and additional information prior to
start of auction. Once registered you will be provided a number to identify
you when you have successfully won a bid.
Reserve Auction
The seller has set a minimum (reserve) price for the lot and can decide
whether to accept or refuse a bid. The reserve price may not be disclosed.
Reserve price
It is the minimum price that you, the seller, is willing to accept for the
item. This amount is set by you before the auction starts, and is never
disclosed.
Sealed Bid
Not a true auction. Confidential bids are submitted and opened only at a
predetermined place and time.
Start price
It is the starting bid of the auction. The starting bid price is normally
set 10% to 20% below the reserve price in order to encourage bidding. If you
do not wish to have a reserve price, then the start price is the minimum
price you will accept for an item.
Win
The person with the high bid is the winner of the auction. If you win an
auction by placing the winning bid, you can then purchase the item at your
winning bid amount.
Yankee Auction
An auction where a seller has listed multiples of the same item. Each
winning bidder pays their exact high bid.
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