Definitions

Absolute Auction: sale at public auction without reserve prices, owner confirmation or other impediments to immediate sale.

Additional: items or lots added to the auction.

Appraisal: independent valuation of an asset or groups or asset, merchandise, item or property.

Appraiser: one who performs an appraisal.

As Is, Where Is: condition or term, which describes the manner in which an item is sold.

Ask: the current price the auctioneer has proposed.

Auction Sale Manager: one who manages the conduct of the auction, advertising and other aspects of the auction.

Auctioneer: a certified or licensed person who conducts the sale of goods at auction.

Bid: an offer to buy at a specified price.

Bidder: person, organization, or entity that is making the BID.

Buyer’s Premium: a stated percentage above the sold price, which the buyer pays.

Confirmation (sold subject to): owner reserves the right to approve the final selling price.

Cut Bid: a bid offered by a bidder in between the bid and the auctioneer’s ask.

Estate Sale: sale of goods, property and items of household nature.

Final Bid Price: the price at which the last ASK and BID have met.

Foreclosure Sale: sale forced by the holder of a financial covenant.

In Entirety: sold as a group. Can be used at the beginning of an auction, or to mean or designate a group of lots during an auction.

Liquidation: the orderly process of selling assets or property through negotiation.

Lot: designation used by Auctioneer to group goods for sale. Can be a single item or groups of item.

Mortgage Sale: sale forced by the holder of a mortgage.

NAA (National Auctioneers Association): the national trade association, which guides the education, conduct, ethics and codes of members.

Price Discovery: the end result of the auction process. Also known as Market Value.

Privilege (with): the right to purchase similar items or lots in succession.

Public Sale: sale of goods to public, open to the public and advertised to the public.

Reserve (with): base price that an item must be sold above.

Secured Party (sale): sale by secured party who has enforced their rights under an existing financial agreement.

Seller Financing: financing offered to a buyer from the owner of the asset.

Standard Bid Increment: a set of standard increments to guide the increase in a bid at certain dollar values.

Terms: set of conditions upon which the items being auctioned are to be sold.

Types of Sales

Personal Property: tangible personal property
Collectibles: items, which form groups or collections
Household Goods: goods such as kitchen items, TV’s etc.
Automobile: provided they are running!
Machinery & Equipment: various types of M&E used in industry
Marine: boats, PWC/Jet Skis, accessories, rope etc.

Note: The above terms and definitions are interpretive only and are not intended to be legal, binding, or strict definitions or terms or procedures. For legal advice please contact a qualified attorney, accountant or financial professional. Any implied qualifications, definitions, advice, counsel or procedure is expressly denied.

Michael A. Salvadore Jr. MPPA, SPA
Licensed Professional Auctioneer, Nationally Accredited Equipment Appraiser
professionally affiliated with:
Kingfish Capital Affiliations NAA Auctioneer ASA MJSA Massachusetts Auctioneer Association National Ground Water Association

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