Real Estate Auction Glossary

A

  • Absolute Auction – An auction where the property is sold to the highest bidder, regardless of price, with no minimum or reserve.
  • As-Is – The property is sold in its current condition, with no warranties or guarantees from the seller.
  • Auctioneer – A licensed professional who conducts the auction, sets bidding increments, and announces winning bids.
  • Auction Chant – The rhythmic, rapid speech of an auctioneer used to engage bidders and drive competitive bidding.

B

  • Bid – A buyer’s offer to purchase the property at a specified price.
  • Bid Assistants (Ringmen) – Auction staff who assist bidders by relaying bids to the auctioneer and encouraging participation.
  • Bidder Number – A unique identifier assigned to each participant at a real estate auction.
  • Bidder Registration – The process where interested buyers register and agree to the auction’s terms before bidding.
  • Buyer’s Premium – A percentage (e.g., 5%-10%) added to the winning bid to determine the final purchase price.

C

  • Clerk – An auction team member responsible for recording bids and buyer information.
  • Commission (Auction Fee) – The amount paid to the auction company, either by the seller or buyer, typically based on a percentage of the sale price.
  • Competitive Bidding – A process where multiple buyers place bids, often driving up the property’s final sale price.
  • Contract Price – The total purchase price after the winning bid, including any applicable buyer’s premium.

D

  • Due Diligence – The process where buyers research the property, title, and auction terms before placing a bid.
  • Deposit (Earnest Money) – A predetermined percentage of the purchase price required from the winning bidder immediately after the auction.

E

  • Escrow – A third-party service that holds funds and documents until all contract conditions are met.
  • Estate Auction – The sale of a property from an estate, often due to inheritance, probate, or liquidation.

H

  • Hybrid Auction – A real estate auction that combines live in-person bidding with simultaneous online bidding.

I

  • Increment – The minimum amount by which a bid must be raised to remain in the competition.

L

  • Live Auction – An event where bidders compete in real-time, either in person or via an online simulcast.
  • Listing Price (Opening Bid) – The initial asking price or suggested starting bid for the auction.

M

  • Market Value – The estimated worth of a property based on recent sales, appraisals, and demand.
  • Minimum Bid Auction – An auction where the property will sell only if bidding reaches a predetermined minimum price.

O

  • Online Auction – A digital bidding platform where buyers compete remotely via the internet.
  • Opening Bid – The first bid placed, which sets the starting point for the auction.

P

  • Preview (Open House) – A scheduled period when potential buyers can inspect the property before the auction.
  • Private Auction – An auction where bidding is restricted to pre-qualified or invited buyers only.
  • Property Information Package (PIP) – A document containing details about the property, auction terms, and bidding procedures.

  • R

  • Reserve Auction – An auction where the seller sets a confidential minimum price; if bidding does not meet the reserve, the property does not sell.
  • Ringman (Bid Spotter) – An assistant who monitors the crowd and signals bids to the auctioneer.

S

  • Sealed Bid Auction – A process where buyers submit confidential bids, and the highest offer is accepted after review.
  • Simulcast Auction – A real-time auction broadcasted live with online bidding capabilities.
  • Sold! – The final declaration by the auctioneer when the highest bid is accepted.

T

  • Terms & Conditions – The rules governing the auction, including deposits, closing timelines, and fees.
  • Trustee’s Sale – A foreclosure auction where a lender sells a property due to a borrower’s default.

U

  • Upset Price – The minimum acceptable price determined by the seller or court in a foreclosure auction.

V

  • Virtual Auction – A fully online auction without a live event component.
  • Vendor Bid – A bid placed by the auctioneer on behalf of the seller to stimulate bidding (not always permitted).

W

  • Winning Bid – The highest bid accepted by the auctioneer, securing the property for the bidder.
  • Withdrawn Lot – A property removed from the auction before bidding begins, typically due to seller discretion.