Absentee Bid

A procedure allowing a bidder to submit a maximum bid without being physically present; the auctioneer executes the bid up to that amount.

 

Absolute Auction (Auction Without Reserve)

An auction where property is sold to the highest bidder without any minimum reserve price; the seller cannot bid in the auction.

 

Auction

A public sale in which goods or property are sold to the highest bidder through open and competitive bidding.

 

Auctioneer

The individual who conducts the auction, announces the bids and manages the sale.

 

Auction Stand

The raised platform or podium where the auctioneer stands to conduct the auction.

 

Auction With Reserve

An auction where the seller sets a confidential minimum price (reserve); the seller may accept or decline the highest bid if it does not meet that price.

 

Bid

A legally binding offer to purchase a lot at a specified price.

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Bid Increment

The predetermined amount by which a new bid must exceed the previous bid.

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Bidder

The person or entity making bids at an auction.

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Buyer’s Premium

An additional percentage of the hammer price that the buyer must pay on top of the final bid.

 

Hammer Price

The final bid amount accepted when the auctioneer’s gavel falls, not including any buyer’s premium.

 

Lot

An individual item or group of items offered for sale as a single unit during the auction.

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Reserve Price

The confidential minimum price that a seller will accept; if bidding does not meet this price, the item may be withdrawn.

 

As Is / Where Is

Indicates that items are sold in their present condition with no guarantees or warranties.

 

Appraisal

The process of estimating the value of an item before it is offered for auction.

 

Catalogue

A printed or digital list of all the items being offered in an auction, including descriptions and lot numbers.

 

Commission

The fee charged by the auction house to the seller, usually a percentage of the hammer price.

 

Consignment

The act of delivering items to an auction house to be sold on behalf of the owner (the consignor).

 

Consignor

The person or entity that owns the items being sold and entrusts them to the auction house.

 

Condition Report

A detailed description of an item’s physical state, noting any damage, restoration, or wear.

 

Estimate

The price range that the auctioneer expects an item to sell for, based on prior sales and market research.

 

Lot Number

A unique number assigned to each item or group of items in an auction for identification.

 

Opening Bid

The first bid accepted by the auctioneer, which starts the bidding process.

 

Paddle

A numbered card used by bidders to signal bids to the auctioneer.

 

Passed Lot

An item that does not meet its reserve price and remains unsold at auction.

 

Provenance

The documented history of ownership of an item, often used to verify authenticity and value.

 

Sales Tax

The government-imposed tax applied to the hammer price and buyer’s premium, depending on location.

 

Telephone Bid

A bid placed by a buyer through a phone call with an auction house representative during the auction.

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