Essential Terms and Definitions for Navigating Auctions
An antique is defined as any object over 100 years old.
In reference to the condition of the item, the seller sells the item without warranties to the fitness of the merchandise. The buyer is responsible for inspecting the item before the sale for their own protection. Synonyms are as follows: “where is”, and “in its present condition”.
A form of selling in which goods are sold to the highest bidder in a public setting.
An auction where the seller reserves the right to accept or decline any bids within a specific time. A minimum bid may or may not be disclosed.
An auction where the merchandise is sold to the highest bidder with no minimums or limiting conditions. The seller may not bid personally or through an agent.
The person whom the seller engages to direct, conduct, or be responsible for a sale by auction.
A buyer’s indication or offer of a price he/she will pay to purchase the item. Bids are usually in standardized increments established by the auctioneer.
Also known as a Memorandum, a form executed by the high bidders confirming and acknowledging the bidder’s identity, the bid price, and the description of the piece.
Commonly known as the auctioneer, the person who “calls”, “cries”, or “auctions” the merchandise at an auction, recognizing bidders and acknowledging the highest bidder.
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) prior to the auction.
An auction at which the sale includes the personal property and/or real property of a living or deceased person.
The minimum price that a seller is willing to accept for the item.
An auction where a group of properties are offered through a common promotional campaign. The properties may be owned by one seller or multiple sellers.
An authorized copy of an original work made by the artist or a skilled craftsman which can be signed or unsigned. Creating a lithograph may even take as long as the length of time it took to create the original artwork itself; so, to preserve the value, only a limited number of prints are allowed. The process involves placing the work on a flat sheet of zinc or aluminum where it is treated to retain ink while the non-image areas are treated to repel ink. Ink is applied to this plate, and then it is pressed onto a paper so that the inked image is transferred to the paper.
The final price of the lot as established by the highest bidder and the auctioneer before dropping the gavel.
A public sale in which the property being sold is due to nonpayment of property taxes.
Conditions of sale that will vary from auction to auction depending on the type of merchandise being sold. Below are usual stipulations that are typically listed on the backs of bidder cards.
The person in charge of the accounting and paperwork at each auction.
When two or more persons bid exactly the same amount at the same time. This issue is resolved by the auctioneer.
Although the methods of payment may vary from auction to auction, typically cash, cashier’s checks, personal checks, Visa, MasterCard, and American Express as accepted. A valid identification such as a state-issued Driver’s License or other Government ID is needed for registration. Personal checks, however, are only accepted from customers that are known to the company. Please see the Payment and Delivery tab for more detailed information.
The percentage added on to the bid amount. Buyer’s premiums are used by almost all auction houses as a way to spread the cost of holding the event from those who benefit the most from the opportunities to purchase, i.e, the buyer. The buyer’s premium is added onto the bid price, and the sales tax is charged onto the buyer’s premium.