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.

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.

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.

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.

A person who acts for or in the place of another individual or entity by authority from them.

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”

A method of selling property in a public forum through open and comprehensive bidding. Also referred to as: public auction, auction sale or sale.

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.

The price which a particular property brings in open competitive bidding at public auction.

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.

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.

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.

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.

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.

The unlawful practice whereby two or more people agree not to bid against one another so as to deflate value.

The number issued to each person who registers at an auction.

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.

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.

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.

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.

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.

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.

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.

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.

An agreement between two or more persons or entities which creates or modifies a legal relationship.

The process of gathering information about the condition and legal status of assets to be sold.

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.

Price established by the last bidder and acknowledged by the auctioneer before dropping the hammer or gavel.

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.

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.

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.

The lowest acceptable amount at which the bidding must commence.

A group of properties offered through a common promotion campaign. The properties to be auctioned may be owned by one seller or multiple sellers.

A charge paid by the owner of property offered at a reserve auction when the property does not sell.

The first bid offered by a bidder at an auction.

An auction conducted on the premises of the property being sold.

Specified date and time property is available for prospective buyer viewing and audits. Also known as Open House or Inspection.

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.

The minimum price that a seller is willing to accept for a property to be sold at auction. Also known as the reserve price.

Entity that has legal possession (ownership) or any interest, benefits or rights inherent to the real or personal property.

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.

When two or more bidders bid exactly the same amount at the same time and must be resolved by the auctioneer.

A sale at auction by a trustee.

Failure to reach the reserve price or insufficient bidding