These terms are used in in various auction houses. Be sure to get familier with them to avoid costly mistakes

Absentee Bids
This is when a prospective buyer places a bid on an item without attending the sale. The bid is submitted prior to the auction by whatever means the auctioneer has stipulated.

Absolute Auction
Absolute auctions are won by the highest bidder without any limitations or reserve prices being imposed.

American Auction
This type of auction has a number of items offered at the same price. The highest bid for the most items wins the bidding.

When an item is valued or confirmed by an auctioneer, it is known as an appraisal. The person doing appraisals may also be known as an appraiser.

A public sale of goods or property in which prospective purchasers bid until the highest price is reached.

The person who conducts an auction sale.

Auction House
Usually refers to auctioneers who hold auctions at their own premises. The company is referred to as an auction house.

The amount someone offers to pay for something.

Catalogue Auctions
These auctions are usually held in a location different from where the actual goods for auction are kept. Viewing of the goods will have taken place prior to the auction.

Dutch Auction
An auction where a seller has listed multiples of the same item. All winning bidders pay only the lowest successful winning bid amount.

Hammer Price
The price reached by the auctioneer when the hammer or gavel is dropped.

On Site Auctions
Sometimes it may not be cost-effective or practical to transport surplus or liquidated goods from the company’s premises to an auction house (for instance where large items of fixed plant and machinery are involved). Under these circumstances, the auction will be held “on site” at the company’s premises.

Online Catalogue
This is when the catalogue is made available for download from the internet.

Opening Bid
The first offer made to the auctioneer.

Minimum Bid
The least or smallest offer that will be accepted by the auctioneer. To bid successfully, you must bid higher than the minimum bid in most cases.

Private Auction
Bidders’ identities are not disclosed in this type of auction.

Proxy Bidding
Submitting a confidential maximum bid to an auction service. The auction will automatically increase the bid to maintain the high bid. The proxy bidding will stop when the bid has won the auction or reached the limit of the proxy bid.

Reserve Auction
The seller has set a minimum (reserve) price for the lot and can decide whether to accept or refuse a bid. The reserve price may not be disclosed.

Sealed Bid
Used in sales by tender, rather than auction. Confidential bids are submitted and opened only at a predetermined place and time.

Yankee Auction
An auction where a seller has listed multiples of the same item. Each winning bidder pays their exact high bid.