Equipment Auction Terminology | Real Estate Auction Terminology
Equipment Auction Terminology ...
ABSENTEE BID (AKA PROXY BID)
A procedure which allows a bidder to participate in the bidding process without being physically present. In order to place an absentee bid (proxy bid), complete the proxy bid form and fax it to our office at 215-634-0496. The Auction Company will bid on your behalf as if you were present at the auction.
ABSENTEE BIDDER
A person (or entity) who does not attend the sale but submits, in advance, a written or oral bid that is executed on his behalf by the auction company.
ABSOLUTE AUCTION
The term "absolute" means the property is ready to be sold to the highest bidder regardless of price.
"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”
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.
BID
A prospective buyer’s indication or offer of a price he or she will pay to purchase an item or property at auction. Bids are usually in standardized increments established by the auctioneer
BID ASSISTANTS
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 lot or lots from a grouping of similar or like-kind items. After the high bidder's selection, the lot is deleted from the group, and the second round of bidding commences, with the high bidder in round two choosing a lot, which is then deleted from the group and so on, until all lots are sold.
BUYER’S PREMIUM
An additional fee paid by the buyer, normally a percentage added onto the final bid price.
A numerical listing of items available for sale at auction, often including detailed descriptions, quantity, unit, and the terms and conditions of the auction.
CURRENT BID
The present high bid. To become the current high bidder, you must advance the bidding by the next bid increment. Current bid + bid increment = next allowable bid.
FINDER'S FEE
A fee paid to you (the finder) for bringing us a business deal. The finder will often serve as an intermediary until the deal is consummated. The fee is usually based on either a percentage of the profit created by the deal or the value of the deal.
INCREMENT
Also called "next bid increment" or "bid increment." The dollar amount by which the bidding is advanced.
INSPECTION
An important part of any auction is the inspection process. All auction sales have an inspection period. Inspection dates and times are made available to the public in advance of the sale.
LOT
It is best described as a single asset or a group of assets sold as a single unit for one price OR as quantity "times the money". Listen to the auctioneer's instructions to be sure.
MAXIMIUM BID
The maximum bid is the most you are willing to bid for an item. The Auction Company will bid on your behalf as if you were present at the auction. The Auction Company will raise the existing bid by the proper increment and continue that process until the bidding stops. The Auction Company will not exceed your maximum bid and will try to buy the item as cheaply as possible below that maximum bid.
MINIMUM BID
The minimum bid is a price established by the Seller below which the asset may not be sold.
ONLINE AUCTION
Online auctions are auctions where all of the bidding takes place on the internet. Unlike a live auction or webcast auction, there is no onsite bidding for an online auction. As opposed to an onsite or webcast auction, where bids are accepted for one lot at a time as the auctioneer progresses through the sale, online auctions enable bidders to bid on all lots concurrently. Online auctions run for a designated period of time during which
bidders can bid competitively on any lot in the sale.
OPENING BID
Also called "starting bid." The price at which the auction of an item begins.
PROXY BIDS (AKA ABSENTEE BIDS)
A procedure which allows a bidder to participate in the bidding process without being physically present. In order to place a proxy bid, complete the proxy bid form and fax it to our office at 215-634-0496. The Auction Company will bid on your behalf as if you were present at the auction.
REGISTRATION
Registration takes place the day of the auction. When arriving at any auction, a registration clerk will be present. He/she will ask you to complete a registration card. The registration clerk will then give the prospective bidder their bidder number. All participants are required to have a bidder’s number, which will be valid for that auction sale only.
RESERVE PRICE
The price at which the Seller is obligated to sell the property. Reserve prices are set by the seller, are optional, and act to protect the seller's financial interest in an asset.
If the highest bid is below the Reserve Price, the Seller may, at his discretion, sell the property at that price, but is not obligated to do so.
SEALED BID SALE
Each bidder submits a single, irrevocable bid without knowledge of the other bids. When the bidding period is closed, the bids are opened simultaneously, at which time the highest bid will be identified. Please refer to the sale’s details page for specific terms and conditions.
TERMS & CONDITIONS
The legal terms that govern the conduct of an auction, including acceptable methods and time of payment, terms of sale, buyer's premiums, removal, possession, reserves and any other limiting factors of an auction. Usually included in published advertisements, catalogs or announced by the auctioneer prior to the start of the auction.
UNIT
An individual item
WEBCAST AUCTION
Using this service, bidders all over the world can bid on the assets for sale over the internet at the same time as those in attendance.
Buyers can now competitively bid for assets from their desks, saving time and money on travel expenses. Webcast auctions are designed so there is no delay experienced by bidders who are not physically at the auction. There is now a level playing field with bidders physically at the auction.
Real Estate Auction Terminology ...
ABSOLUTE AUCTION
The term "absolute" means the property is ready to be sold to the highest bidder regardless of price.
AGENT
A person who acts for or in the place of another individual or entity by authority from them.
AGREEMENT OF SALE
The legal contract between buyer and seller of a property including the sale price, settlement date, and all terms and conditions of the sale.
“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”
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 establish a minimum bid, to accept or reject any or all bids.
AUCTION WITHOUT RESERVE
See Absolute Auction.
BALLROOM AUCTION
An auction of one or more properties conducted in a meeting room facility.
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 ASSISTANTS
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 KIT
A bidder’s kit is the package of information and instructions pertaining to the property which is to be sold at auction. A bidder’s kit is available for every real estate auction. You may call or email us. It is also available on the sale’s details page.
BROKER
A real estate broker who represents the buyer in a real estate transaction.
BROKER PARTICIPATION
An arrangement for third-party brokers to register potential bidders for properties being sold at auction for a commission paid by the owner of the property or the auction firm.
BUYER’S PREMIUM
An additional fee paid by the buyer, normally a percentage added onto the final bid price.
CURRENT BID
The present high bid. To become the current high bidder, you must advance the bidding by the next bid increment. Current Bid + Bid Increment = Next Allowable Bid.
INCREMENT
Also called "Next Bid Increment" or "Bid increment." The dollar amount by which the bidding is advanced.
FINDER'S FEE
A fee paid to you (the finder) for bringing us a business deal. The finder will often serve as an intermediary until the deal is consummated. The fee is usually based on either a percentage of the profit created by the deal or the value of the deal.
INSPECTION
An important part of any auction is the inspection process. All auction sales have an inspection period. Inspection dates and times are made available to the public in advance of the sale.
MARKET VALUE
The highest price in terms of money which a property will bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably and assuming the price is not affected by undue stimuli.
MINIMUM BID AUCTION
Is an auction in which the Seller or his agent reserves the right to establish a minimum bid at which the property must be sold.
MINIMUM OPENING BID
The lowest acceptable amount at which the bidding must commence.
MULTI-PROPERTY AUCTION
A group of properties offered through a common promotional campaign. The properties to be auctioned may be owned by one seller or multiple sellers.
MULTI-SELLER AUCTION
Properties owned by many sellers, offered through a common promotional campaign are auctioned in a single event.
REAL ESTATE REGISTRATION
Registration takes place on the day of the auction. When arriving at any auction, a registration clerk will be present. He/she will ask you to complete a registration card.
To register, a prospective bidder must:
- provide his/her full name, residence/business address, telephone number, email address (or simply provide us with your business card) and where they heard about the auction
- sign the bottom portion of the registration card, which acts as an acknowledgement that he/she has read and agrees to be bound by the terms & conditions.
- show the registration clerk their driver’s license
- show the required deposit in the form of a cashier’s check in the amount specified.
All participants are required to have a bidder’s number, which will be valid for that auction sale only.
RESERVE PRICE
The price at which the Seller is obligated to sell the property. Reserve prices are set by the seller, are optional, and act to protect the seller's financial interest in an asset.
If the highest bid is below the Reserve Price, the Seller may, at his discretion, sell the property at that price, but is not obligated to do so.
SEALED BID SALE
Each bidder submits a single, irrevocable bid without knowledge of the other bids. When the bidding period is closed, the bids are opened simultaneously, at which time the highest bidder will be identified. Please refer to the sale’s details page for specific terms and conditions
SETTLEMENT
The day on which the formalities of a real estate sale are concluded. The final closing merely confirms the original agreement reached in the agreement of sale. The balance of the purchase price together with the net amount of any adjustments shall be paid by cashier's check at the time of settlement. Settlement usually takes place within 30 to 60 days from the date of the auction sale.
SUBJECT TO CONFIRMATION
The Seller(s) has the right to accept or reject any and all bids.
TITLE
A document provided by a qualified source (such as a title company) showing that property legally belongs to the current owner. The successful purchaser will receive a deed for the property at the time of settlement.
REAL ESTATE TERMS & CONDITIONS
The legal terms that govern the conduct of an auction, including acceptable methods and time of payment, terms of sale, 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.
