This resource of real estate auction terminology can be a great tool in learning and understanding the process and details associated with home auctions and foreclosure auctions.
Real Estate Auction Terms: A - E
Absentee Bidder
any individual or entity who is not present at the actual sale, but instead sends an advance notice of the ceiling bid which he or she is willing to spend for a certain property. The notice may either be in oral or written form.
Absolute Auction
an auction event wherein the properties up for bid are handed out to the buyer with the highest bid, without having limitations concerning conditions for sale or the amount. Agents may or may not represent the sellers. This type of arrangement is also called as auction without reserve.
Agent
Any individual who serves as a substitute for any other person or entity, with authorization from the latter.
"As Is"
Granting the sale of any property with the exclusion of warranties, regarding the condition or state of the said property. The buyer is expected to take full responsibility for the assessment of the property before approving of any sale transfer. This arrangement is also known as "As is, where is" or "In its present condition."
Auction
a process of putting up a property for sale through public forum. In most instances this involves an open and aggressive bidding process. This is also called as a public auction, a sale, or an auction sale.
Auction Block
The pedestal wherein the auctioneer assumes his position during the duration of the auction process. "Putting an item on the auction block" is synonymous with putting something up for bid.
Auction Listing Agreement
an agreement enforced between an auctioneer and a seller, giving the latter the authority to hold the bidding; the contract defines the specific conditions of the agreement, and establishes the rights and duties of all involved parties.
Auction Marketing
the process of putting real property out on the market for sale with the use the auction procedure.
Auction Price
The value of the property as acquired through the auction procedure.
Auction Subject to Confirmation
refer to the entry Reserve Auction
Auction with Reserve
An auction procedure wherein the seller reserves the opportunity to approve of or reject bids on his property. A base minimum value is set before the auction which is or is not revealed, allowing the seller to deal with any bid as he or she chooses to.
Auction without Reserve
refer to the entry Absolute Auction
Auctioneer
the individual who is entrusted by the seller to carry out the process for the auction of the latter's property. The auctioneer can or may not call out the actual bid offerings.
Ballroom Auction
any auction event wherein the properties are put up for bid within an activity area.
Bid
The price which a potential buyer is willing to offer in exchange for ownership of the property up for auction. Bids normally increase in value, as determined by an auctioneer.
Bid Assistants
persons who are tasked with the responsibility of helping the auctioneer make the auction procedure more organized. They are placed on key areas so that identifying and assisting bidders would be done in relative ease. They are also called groundsmen, ringmen, bid spotters, or consultants.
Bid Caller
The individual who declares the details of the property up for bid, identifies bidders, and finalizes the highest bid. Also referred to as an auctioneer.
Bid Rigging
the illegal strategy wherein two or more individuals connive to refrain from bidding against each other, in an effort to deflate the property value.
Bidder Number
the identification number which is given to all individuals registered with the auction event.
Bidder Package
the documentation concerning the property which are intended to be put up for sale at the event, and is acquired by potential bidders. This is also called the due diligence package or the bidder packet.
Buyer's Broker
any real estate agent who stands in place of the buyer, and is normally paid a fee by the latter for the services which comes with the responsibility.
Buyer's Premium
a published percentage from the high bid, or the flat rate, which is then augmented to the high bid in order to identify the total price to be fulfilled by the buyer, as stated in the contract.
Carrying Charges
the expenses which are involved for holding a particular property that is meant to bring income, whether through its sale or lease, but as yet is unfulfilled, because of tax obligations, maintenance, insurance, and management details.
Catalog or Brochure
any published announcement which details the properties acquirable through sale at a public auction event, which often include pictures and descriptions of the property, as well as the conditions for its sale.
Caveat Emptor
a Latin phrase which means 'let the buyer beware.' This is a legal aphorism which implies that the buyer purchases the property at his own risk, unless it is protected by an enforced warranty.
Collusion
the illegal strategy wherein two or more individuals connive not to bid against each other in an attempt to deflate the property value. This also refers to the act of accepting a conjured bid by the auctioneer on the seller's behalf, in an attempt to increase the price of the property up for bid.
Conditions of Sale
the legal conditions which encompass the auction event, which can include the accepted payment methods, the premium of the buyer, the terms for sale and possession, and the limiting aspects and reserves of the event. These are usually published in advertisements or are declared by an auctioneer at the beginning of the auction event.
Contract
any agreement established between two or more individuals or entities, which lay out or amends on a legal relationship.
Cooperating Broker
any real estate agent who puts up a potential buyer for registration with the auction company, within the terms and conditions determined for that particular auction event. The agent is paid a fee only if his client prospect happens to be the highest bidder, and if the agent can finalize the transfer of ownership of the property. Also referred to as a participant broker.
Due Diligence
the procedure of collecting details concerning the physical and legal status of the property for sale.
Estate Sale
a property which is put up for sale, following its owner's death. Estate auctions can include personal and real properties.
Real Estate Auction Terms: L - O
Listing Broker
any real estate agent who possesses a listing on a specific property, and obliges with the auction company by permitting the auction agreement to supercede the listing agreement which the former possesses.
Market Value
the highest currency value which a specific property will fetch within an open and aggressive market that operates under the terms required for a fair sale; this assumes that both parties act sensibly and with full knowledge of the conditions, and that the price is unaffected by uneventful occurrences.
Minimum Bid Auction
an auction procedure wherein the auctioneer will only approve of bids which are at or exceeding the revealed minimum price. This basic value is declared in the brochures, and at the actual auction event.
Multi-Property Auction
a cluster of properties which are presented through a common promotional campaign. These may be owned by an individual or a group of separate sellers.
Multi-Seller Auction
properties which are owned by numerous sellers, auctioned off at a single event.
National Auctioneers Association
an organization of separate auctioneers, which have a common goal of promoting the interests of its affiliates. It also regulates the ethical standards for the trade, encourages the enforcement of fair and reasonable legislation and regulation concerning auction sales, informs the public of the advantages of this selling arrangement, and improves upon the current state of the trade.
No-Sale Fee
an amount fulfilled by the property owner of an entry at a reserve auction, in case the property is not sold.
Opening Bid
the initial bid which is offered by the first bidder at an auction event. This is also the lowest acceptable bid.
On-site Auction
any auction event which is held within the premises of the property up for sale.
Real Estate Auction Terms: P - W
Participating Broker
refer to the entry Cooperating Broker
Preview
the base or minimal price which a seller can accept for the sale of the property to be put up for bid. Also referred to as the reserve price.
Sale Manager
the individual selected by an auction company to take on the responsibility of organizing the particulars of the auction event. Also referred to as the project manager.
Sealed Bid
a process of sale wherein confidential bids are proposed for opening at predetermined conditions. This is not an auction in the sense that it inhibits the opportunity for reaction from an aggressive marketplace.
Seller
any entity which has legal ownership of any specific interest, benefit or privileges which are include in the real or personal property.
Subject to Confirmation
refer to the entry Reserve Auction
Tax Sale
the public sale of any property through an auction event as afforded by government authority, because of unfulfilled tax obligations on the property.
Terms
the time interval in which the agreement takes effect.
Terms and Conditions
the written rules regulating the conduct of the auction event, and specific parts of the Purchase and Sale Agreement, which are either declared or handed out to prospective bidders at the beginning of the event.
Tie Bids
describes a situation wherein two or more bidders simultaneously offer the same exact amount; the auctioneer has the authority to resolve the tie.
Trustee's Sale
sale entries at an auction event offered by a trustee.
Withdrawal
refers to the inability to reach the reserve value, it also refers to insufficient offer bids.
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