Terminology
AARE (Accredited Auctioneer, Real Estate)
The professional designation awarded by the National Auctioneers Association Education Institute to qualified real estate auctioneers who meet the educational and experiential requirements of the Institute and who adhere to a strict code of ethics and standards of practice.
Absentee Bid
A procedure which allows a bidder to participate in the bidding process without being physically present. A bidder submits an offer prior to the auction.
Absolute Auction
The property sells to the highest bidder regardless of price. This typically generates a much greater interest among potential buyers resulting in greater attendance at the auction , and a higher final sale price for the item in question.
Appraisal
The act or process of estimating value.
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" and "In its Present Condition.
Auction
A method of selling an item in a public forum through open and competitive bidding.
Auctioneer
The person whom the seller engages to direct, conduct, or be responsible for a sale by auction.
Bid
A prospective buyer’s indication or offer of a price he or she will pay to purchase an item at auction. Bids are usually in standardized increments established by the auctioneer.
Bid Assistant
A person who assists the bidder and the auctioneer. Calls out bidders’ bids, answers questions, and makes the bidder’s comfortable with the auction process
Bidder Number
Individually numbered card with your unique bidder number. This will identify you to the auctioneer as the successful bidder.
Bidder Registration
The process of registering your identity and ability to pay for successful bids. This is essential before bidding.
Broker Participation
An arrangement for third-party brokers to register potential bidders for properties being sold at auction for a commission paid out of the buyer premium.
Buyer’s Premium
An amount (usually a percentage) that is added to the winning bid (hammer price) to determine the contract selling price which the buyer pays for the property being sold. Sellers benefit because it helps to defray many of the expenses associated with conducting an auction. The open and competitive bidding process might not exist if the buyer’s premium were not used to offset some of the auction related expenses.
Conditions of Sale
The legal terms that govern the conduct of an auction, including methods of payment, terms, buyers premiums, possession, reserves and any other announced by the auctioneer prior to the start of the auction.
Earnest Money Deposit
An amount the successful bidder is required to put down following the auction as good faith money. An Earnest Money Deposit can be made by cash or check.
Hammer Price
The highest bid which is accepted by the auctioneer
Online Bidding
The procedure of submitting bids electronically by a mobile device or computer.
On-Site Auction
An auction conducted on the premises of the property or items being sold.
Personal Property
All goods and interests other than real property including chattels and commodities. Title for personal property sold at auction passes when the auctioneer accepts the final bid and announces the item sold (at the fall of the hammer).
Real Property/Real Estate
Land and all interests therein, including all improvements to the land, such as buildings, fences, and fixtures. Title for real estate sold at auction passes at closing with delivery and acceptance of the deed.
