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2008-03-01 Coin Auction... T. Kye
2008-02-01 Ducks Unlimited Annual Benefit Auction... Dave Grabow, Regional Director
Ducks Unlimited 2008-01-01 Auction... Barry & Robin
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Auctioneers | Brokers | Appraisers | AB2387
The following is a glossary of real estate auction terms developed by the National Association of Realtors – Real Estate Auction Committee, the National Auctioneers Association and the Auction Marketing Institute. While it is a real estate glossary, most of the terms apply to all types of auctions.
AARE (Accredited Auctioneer, Real Estate)
The professional designation awarded 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. Generally, a bidder submits an offer
on an item prior to the auction. Absentee bids are usually handled under
an established set of guidelines by the auctioneer or his representative.
The particular rules and procedures of absentee bids are unique to each
auction company.
Absentee Bidder
A person (or entity) who does not attend the sale but submits in advance
a written or oral bid that is the top price he or she will pay for a given
property.
Absolute Auction
An auction where the property is sold to the highest qualified bidder
with no limiting conditions or amount. The seller may bid personally or
through an agent. Also known as an auction without reserve.
Agent
A person who acts for or in the place of another individual or entity
by authority from them.
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 property in a public forum through open and comprehensive
bidding. Also referred to as: public auction, auction sale or sale.
Auction Listing Agreement
A contract executed by the auctioneer and the seller which authorizes
the auctioneer to conduct the auction and sets out the terms of the agreement
and the rights and responsibilities of each party.
Auction Value
The price which a particular property brings in open competitive bidding
at public auction.
Auction With Reserve
An auction in which the seller or his agent reserves the right to accept
or decline any and all bids. A minimum acceptable price may or may not
be disclosed and the seller reserves the right to accept or decline any
bid within a specified time.
Auctioneer
The person whom the seller engages to direct, conduct, or be responsible
for a sale by auction. This person may or may not actually call or cry
the auction.
Bank Letter of Credit
A letter from a bank certifying that a named person is worth a given
level of credit. Often requested from prospective bidders or buyers who
are not paying with currency at auction.
Bid
A prospective buyer's indication or offer of a price he or she will
pay to purchase property at auction. Bids are usually in standardized
increments established by the auctioneer.
Bid Acknowledgment
A form executed by the high bidder confirming and acknowledging the
bidder's identity, the bid price and the description of the property.
Also known as Memorandum.
Bid Rigging
The unlawful practice whereby two or more people agree not to bid against
one another so as to deflate value.
Bidder Number
The number issued to each person who registers at an auction.
Bidder Package
The package of information and instructions pertaining to the property
to be sold at an auction event obtained by prospective bidders at an auction.
Sometimes called a Property Information Package or a due diligence package.
Bidder's Choice
A method of sale whereby the successful high bidder wins the right to
chose a property or properties from a grouping of similar or like-kind
properties. After the high bidder's selection, the property is deleted
from the group, and the second round of bidding commences, with the high
bidder in round two choosing a property, which is then deleted from the
group and so on, until all properties are sold.
Broker Participation
An arrangement for third-party brokers to register potential bidders
for properties being sold at auction for a commission paid by the owner
of the property or the auction firm.
Buyer's Broker
A real estate broker who represents the buyer and, as the agent of the
buyer, is normally paid for his/her services by the buyer.
Buyer's Premium
An advertised percentage of the high bid or flat fee added to the high
bid to determine the total contract price to be paid by the buyer.
Catalog or Brochure
A publication advertising and describing the property(ies) available
for sale at public auction. Often including photographs, property descriptions,
and the terms and conditions of the sale.
Commission
The fee charged to the seller by the auctioneer for providing services,
usually a percentage of the gross selling price of the property established
by contract (the listing agreement) price at the auction.
Conditions of Sale
The legal terms that govern the conduct of an auction, including acceptable
methods of payment, terms, buyer's premiums, possession, reserves and
any other limiting facts of an auction. Usually included in published
advertisements or announced by the auctioneer prior to the start of the
auction.
Contract
An agreement between two or more persons or entities which creates or
modifies a legal relationship.
Due Diligence
The process of gathering information about the condition and legal status
of assets to be sold.
Graduate, Personal Property Appraiser (GPPA)
The professional designation awarded to qualified personal property
appraisers who meet the educational and experiential requirements of the
Institute and who adhere to a strict code of ethics and standards of practice.
Hammer Price
Price established by the last bidder and acknowledged by the auctioneer
before dropping the hammer or gavel.
Internet Bidding
A bidding process where bidding is done online from convenience of a computer.
Market Value
The highest price in terms of money which a property will bring in a
competitive and open market under all conditions required to a fair sale,
the buyer and seller, each acting prudently, knowledgeably and assuming
the price is not affected by undue stimulus.
Memorandum
Sometimes also referred to as an “Acknowledgment of Bid”, the memorandum
is signed by those parties either on the auction floor or in the contract
room.
Minimum Bid Auction
An auction in which the auctioneer will accept bids at or above a disclosed
price. The minimum price is always stated in the brochure and advertisements
and is announced at the auctions.
Minimum Opening Bid
The lowest acceptable amount at which the bidding must commence.
Multi-Property Auction
A group of properties offered through a common promotion campaign. The
properties to be auctioned may be owned by one seller or multiple sellers.
No-Sale Fee
A charge paid by the owner of property offered at a reserve auction
when the property does not sell.
Opening Bid
The first bid offered by a bidder at an auction.
On-site Auction
An auction conducted on the premises of the property being sold.
Preview
Specified date and time property is available for prospective buyer
viewing and audits. Also known as Open House or Inspection.
Referring Broker
A real estate broker who does not have a listing on a property but refers
the auction company to a potential seller for an auction. Usually earns
a flat fee commission for referring product to an auction company upon
sale of the property.
Reserve
The minimum price that a seller is willing to accept for a property
to be sold at auction. Also known as the reserve price.
Seller
Entity that has legal possession (ownership) or any interest, benefits
or rights inherent to the real or personal property.
Terms and Conditions
The printed rules of the auction and certain aspects of the Purchase
& Sale Agreement that are read and/or distributed to potential bidders
prior to an auction sale.
Tie Bids
When two or more bidders bid exactly the same amount at the same time
and must be resolved by the auctioneer.
Trustee's Sale
A sale at auction by a trustee.
Withdrawal
Failure to reach the reserve price or insufficient bidding
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 AB2387
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Abal Auction Real Estate
77 Dr. Joe Abal Drive | Crawfordville, FL 32327850-926-9160 | 850-510-2501 Fax: 850-926-7649
Joseph A. Abal, Ph.D.
Lic. Real Estate Broker |
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