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AUCTION TERMS AND DEFINITIONS

AUCTION TERMS AND DEFINITIONS

ABSOLUTE AUCTION: Sale at Public Auction without reserve prices, owner confirmation or other impediments to immediate sale

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

APPRAISAL: Independent valuation of an asset or groups or asset, merchandise, item or property

APPRIASER: One who performs an appraisal.

PUBLIC SALE: Sale of goods to public, open to the public and advertised to the public

BID: an offer to buy at a specified price

BIDDER: person, organization, or entity that is making the BID

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

BUYER'S PREMIUM: a stated percentage above the sold price, which the buyer pays

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

PRIVILEDGE (WITH): the right to purchase similar items or lots in succession

ADDITIONS: items or lots added to the auction

"AS IS, WHERE IS": condition or term, which describes the manner in which an item is sold.

RESERVE (WITH): base price that an item must be sold above

CONFIRMATION (SOLD SUBJECT TO): owner reserves the right to approve the final selling price

SECURED PARTY (SALE): sale by secured party who has enforced their rights under an existing financial agreement

CUT BID: a bid offered by a bidder in between the bid and the auctioneer's ask

ASK: the current price the auctioneer has proposed

STANDARD BID INCREMENT: a set of standard increments to guide the increase in a bid at certain dollar values

PRICE DISCOVERY: the end result of the auction process. Also known as Market Value

MORTGAGEE SALE: sale forced by the holder of a mortgage

FORCLOSURE SALE: sale forced by the holder of a financial covenant

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

IN ENTIRITY: 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

AUCTION SALE MANAGER: one who manages the conduct of the auction, advertising and other aspects of the auction

SALES (TYPES):
PERSONAL PROPERTY: tangible personal property
COLLECTIBLES: items, which form groups or collections
HOUSESOLD 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

LIQUIDATION: the orderly process of selling assets or property through negotiation

SELLER FINANCING: financing offered to a buyer from the owner of the asset

NAA (NATIONAL AUCTIONEERS ASSOCIATION): the national trade association, which guides the education, conduct, ethics and codes of members.

NOTE: THE ABOVE TERMS AND DEFINITIONS ARE INTERPRATIVE 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 FINACIAL PROFESSIONAL. ANY IMPLIED QUALIFICATIONS, DEFINITIONS, ADVICE, COUNSEL, OR PROCEDURE IS EXPRESSLY DENIED.