AUCTION TERMINOLOGY

Things you need to know if you attend Auctions. Terminology used in the auction industry.

Absentee Bid - A bid on a specific lot left in advance by a buyer who is unable to attend the auction.
Absolute Auction - Every item is being sold without reserve. All items will sell no matter the price.
As Is - The first two words taught to new students in auction school. It means selling assets without any warranty as to their condition and merchantability for a particular use. You are buying items as you see them. It is up to you to inspect any and all items prior to items selling.
Auction - The sale of property by means of exchanges between an auctioneer and bidders whereby the auctioneer declares a sale to the highest, or most favorable bidder, to form a contract of sale between that bidder and the seller.
Auction Subject to Seller Confirmation - This is a variation on an "auction with reserve." The auctioneer brings the top bid to the seller who then accepts or rejects it. This is usually offered on larger items like cars or real estate.
Auction with Reserve - The seller reserves the right to accept or reject any and all bids, or to withdraw the property at any time prior to the announcement of the completion of the sale.
Auctioneer - The person engaged by the seller to conduct the auction.
Bank Letter of Credit - An auctioneer may require an unknown person to provide a letter from his bank certifying credit worthiness to a stated level before he will be registered to bid at the auction.
Bid - The amount a prospective buyer signals the auctioneer he would pay to buy the lot during bidding.
Bidder - One who places a bid. (Buyer)
Bid Card - A card exhibiting a registered bidder's bid number to be used for bidding in the auction.
Bid Rigging - When two or more people conspire to restrain trade by artificially "fixing" bids in an auction. This can occur when bidders agree not to bid against one another so as to depress selling prices, or when an auctioneer and one or more shills work in concert to artificially increase selling prices.
Bidders' Dispute - A term commonly (and mistakenly) used with "late bids."
Bid Spotter -Auction floor workers who helps the auctioneer locate and identify bidders.
Buyer's Premium - The third and fourth words taught to new students in auction school. A marketing tool increasingly used by auctioneers, it's a surcharge that is a stated percentage added to the high bid for a lot to determine the lot's final selling price to be paid by the buyer. Braxton's charges a 13% buyer premium. Buyer get a discount of 3% by using cash or certified funds (Check)
Caveat Emptor - The two most important words for prospective buyers. It is an ancient Latin axiom that means, "Let the buyer beware." It reminds buyers that they take the risk of the quality and condition of the property they purchase.
Chant - The rhythmic combination of numbers and separating filler words called by the bid caller on a lot. The chant is comprised of two numbers - the amount that has been bid for the lot, and the next higher increment that the bid caller is seeking in the bidding. The single-most important characteristic of a good chant is clarity.
Choice - A selling method auctioneers sometimes use with similar items that are offered in a "variable" lot. Bidders compete and the highest bidder gains control. That bidder has the "choice" to select any one piece from the lot for the amount of his high bid, as well as the "choice" to select additional pieces from the lot, again paying the amount of his high bid for each additional piece taken. After this bidder has completed his selection, if any items remain in the lot, one or more additional rounds of bidding will follow the same procedure until all items in the lot have been sold.
Clerk - An auction worker who records each lot sold and marks the identity of the seller, buyer, and amount of the selling price.
Commission - The fee the auctioneer charges a seller for providing certain services to sell property at auction. The commission is usually a stated percentage of the gross selling price of the property.
Conditions-See "terms."
Consignment auction - An auction comprised of goods offered for sale by multiple sellers.
Consignor - A seller who places his or her items up for auction.
Dropping off items - Items are allowed to be dropped of anytime during the week except Wednesday. ( Braxton's Auctioneering is close on Wednesdays with no help available for loading or unloading. Please call 770-466-0748 to let us know you are coming, especially if you have large loads.
Hammer Price - The selling price of a lot that is sold to the highest bidder.
Hours of opperation - Clock World & Coins 9-5 Monday through Friday, Saturday 10 - 5, Shops at Braxton's, Monday 9 - 5 Stays open till 8 on auction night, Friday & Saturday 10 - 5 pm. Miss Dot's Diner. Lunch Daily 11-3 and open auction nights.
Prime of the Auction - Auctioneers want to sell the best items in the "Prime of the auction" when the bidding interest and money to be spent are the greatest.
Primary Floor Man - At some auctions, a member of the auction crew (not the auctioneer) will describe each lot to the audience before it is opened to bidding. This is the person who controls the auction floor.
Left Bid - See "absentee bid."
Lot - A number give to a specific item to help identify that specific lot or item. Lot numbers correspond with the photos on our large viewing screen.
Minimum Opening Bid - An auction in which the auctioneer will only accept bids at, or above, the amount of the disclosed, opening bid.
NAA - National Auctioneers Association, and organization of over 6,000 professional auctioneers.
On-Site Auction - An auction conducted on the premises where the property is located that is being offered for sale.
One Money - When two or more items are sold in a single lot for the highest amount bid.
Phone Bidder - A person who is unable to be present during the auction, but still wants to bid on an item while it is being sold.
Picker - A person who searches for and acquires goods of value for the purpose of reselling them for profit through various channels, including auctions. Pickers are an important component in auction sales as they bring many of the items to market that auctioneers sell.
Public Auction - An auction that is advertised and open to the public to bid on the property offered for sale.
Reproduction - An exact or close imitation of an item, usually worth far less than the original. We have many reproductions on the market today. The Buyer needs to be aware of what they are buying.
Reserve - A predetermined, minimum threshold price a seller will accept to sell certain property at auction. It is a safeguard against a sacrifice of the seller's assets. See "auction with reserve."
Rolling Back - When an auctioneer cries decreasing numbers in an effort to tempt a bidder to jump in and start the bidding on a lot.
Settlement reports- An auctioneer's financial report to the seller detailing all sales, all money received, and all money disbursed.
Shill - Co-conspirators of a crooked auctioneer who are planted in an auction crowd to bid but not buy. Shills make "empty" bids in an effort to cause legitimate bidders to bid against them and escalate the bidding. The use of shills is fraud.
Sold! - Music to an auctioneer's ears.
Starting the Bid - When an auctioneer makes the opening bid to kick off the bidding. Auctioneers appreciate it when YOU the buyer starts the bidding off. Ex. (starting at $100. or $25.) The starting bid is usually 40-60% of selling price.
Terms - The provisions for the auction announced at the beginning that will become the binding details of the contracts of sale formed between the seller and respective high bidders.
Tie Bid - A tie bid exists when the auctioneer mistakenly takes the same bid from two different bidders and then declares a sale to one of them. The item is then reopend for bid between the two bidders only. Auctioneers bidder is ALWAYS the lead buyer. Usually this accurs when another floor man has another buyer in as the primary buyer.
Times the Money - A selling method whereby an auctioneer sells multiple items in one lot under the term that the lot's final price will be calculated by multiplying the highest bid by the number of items comprising the lot. An example is a set of 4 chairs. 4 x the money. Chair sells for $50.00, so the total price will be 4x50=200.