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.
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| "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."
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| Auction | A method of selling real estate in a public forum through open and competitive bidding. Also referred to as: public auction, auction sale or sale.
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| 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.
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| 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.
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| Ballroom Auction | An auction of one or more properties conducted in a meeting room facility.
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| 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.
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| Bid Assistants | Individuals who are positioned throughout the attendees at the auction to assist the auctioneer, spot bidders and assist prospective bidders with information to help them in their buying decision. Also known as ringmen, bid consultants, bid spotters, or groundsmen.
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| Bid Caller | The person who actually "calls," "cries or "auctions" the property at an auction, recognizing bidders and acknowledging the highest bidder. Commonly known as
the auctioneer.
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| Bidder Number | The number issued to each person who registers at an auction.
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| Bidder Package/Detailed Information Package (DIP) | 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 bidder packet or due diligence package.
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| Bidder's Choice | A method of sale whereby the successful high bidder wins the right to choose 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.
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| 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.
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| 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.
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| 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.
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| Collusion | The unlawful practice whereby two or more people agree not to bid against one another so as to deflate value.
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| Due Diligence | The process of gathering information about the condition and legal status of assets to be sold.
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| Hammer Price | Price established by the last bidder and acknowledged by the auctioneer before dropping the hammer or gavel.
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| Opening Bid | The first bid offered by a bidder at an auction.
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| On-site Auction | An auction conducted on the premises of the property being sold.
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| Participating Broker | A real estate broker who registers a prospective buyer with the auction company, in accordance with the terms and conditions for that auction. The broker is paid a commission only if his prospect is the high bidder and successfully closes on the property.
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| Preview | Specified date and time property is available for prospective buyer viewing and audits. Also known as Open House or Inspection.
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| Sale Manager | The person designated by the auction company who is responsible for organizing the details of an auction. Also known as project manager.
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| Sealed Bid | A method of sale utilized where confidential bids are submitted to be opened at a predetermined place and time. Not a true auction in that it does not allow for reaction from the competitive market place.
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| Seller | Entity that has legal possession, (ownership) of any interests, benefits or rights inherent to the real or personal property.
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| 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.
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| Written Bid | A procedure which allows a bidder to participate in the bidding process without being physically present. The bidder submits, in advance, a written bid that is the top price he or she will pay for a given property.
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