Frequently Asked Questions
WHAT IS AN AUCTION?
Auctions have existed for more than 2,000 years and continue to grow in popularity every year. An auction occurs when consumers gather physically, or online, to buy an item by bidding against each other until the highest offered price is reached.
WHAT TYPES OF AUCTIONS ARE THERE?
Agricultural machinery & equipment, art, antiques & collectibles, Automobiles, Benefit, Commercial & Industrial machinery & equipment, Commercial & Industrial Real Estate, Estates, Intellectual Property, Land & Agricultural Real Estate, Livestock, Personal Property & Residential Real Estate.
WHAT IS AN ABSENTEE BID?
It’s a procedure which allows a bidder to participate in the bidding process without being physically present.
WHAT IS AN ABSOLUTE AUCTION (WITHOUT RESERVE)?
An auction where the property is sold to the highest qualified bidder with no limiting conditions or amount.
WHAT IS “AS IS”?
Selling the property without warranties as to the condition and/or 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”.
WHAT IS AN AUCTION LISTING AGREEMENT?
It is 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.
WHAT IS AN AUCTION WITH RESERVE?
It is 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.
WHAT IS A BALLROOM AUCTION?
It is an auction of one or more properties conducted in a meeting room facility.
WHAT IS 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.
WHAT IS A BIDDER’S PACKAGE?
It is the package of information and instructions pertaining to the property to be sold at an auction event obtained by prospective bidders at an auction.
WHAT IS A BUYER’S PREMIUM?
It is a percentage added on to the high bid. Bidder’s premiums are used by many auction houses as a way of spreading the cost of the event with the people who benefit most from the opportunity to purchase, the buyer. It is an amount added to the high bid in addition to the high bid and payable by the buyer.
WHAT IS CAVEAT EMPTOR?
It is a Latin term meaning “let the buyer beware”. A legal maxim stating that the buyer takes the risk regarding quality or condition of the property purchased, unless protected by warranty.
WHAT IS A MINIMUM BID AUCTION?
It is 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.
WHAT IS AN OPENING BID?
It is the lowest acceptable amount at which the bidding must commence.
WHAT IS A RINGMAN?
The “Ringman” is a member of the auction team who works with bidders throughout the auction. A “ringman” is generally recognized as the person in the crowd yelling and flashing hand signals to the auctioneer when a bid has been made. This individual works the auction “ring”, hence the name “ringman”.
WHAT ARE THE TERMS & CONDITIONS?
“Terms & Conditions” are the printed rules and format of the auction. Terms & Conditions outline the type of auction, the commission structure of auction, and any other pertinent information. The terms of each auction vary and differ between auction companies.
WHAT IS A WITHDRAWAL?
A withdrawal is failure to reach the reserve price or insufficient bidding.