Glossary of terms

Key Auction Terms

1. Auction

The public sale of property to the highest bidder.

2. Bid

The amount a prospective buyer offers to pay for a property at auction.

3. Reserve Price

The minimum price that a seller is willing to accept for a property. If the bidding does not reach this price, the property will not be sold.

4. Buyer’s Premium

An additional percentage of the winning bid, paid by the buyer to the auction house.

5. Hammer Price

The final accepted bid amount before any additional fees or premiums are added.

6. Absentee Bid:

A bid placed by someone who cannot attend the auction in person. This can be done via online platforms or by proxy.

7. Bid Increment

The minimum amount by which a bid must increase over the previous bid.

8. Fair Warning

A warning given by the auctioneer indicating that the bidding is about to close.

9. Lot

An individual item or group of items offered for sale at auction as a single unit.

10. No Reserve (Absolute Auction)

An auction in which the property is sold to the highest bidder without any minimum price set.

11. Opening Bid

The first bid placed, often set by the auctioneer to start the bidding process.

12. Winning Bidder:

The person who places the highest bid accepted by the auctioneer when the auction closes.

13. Bidder Number:

A unique identifier assigned to each registered bidder.