Common Auction Terminologies: A Must Learn
Absolute auction is also known as straight auction. This is a type of auction where there is no amount or limiting conditions.
`As is where is' or 'in its present condition' or simply 'as is' is a term used to describe an item without return privileges.
Auction block is a stage or a podium where the auctioneer stands and calls for the bids. When an item is placed on an auction block, it means the item will go on sale.
Auctioneer is the person who calls for bid during the auction process.
Bid is an offer of a price the buyer has called.
Bid History is a list of all the bids made, usually, in chronological order. This is usually used at silent auctions.
Buy-out is a predetermined price set by the seller. Once the buy-out price is reached, the auctioneer has the option to stop the bidding and award the item to last bidder.
Deadbeats is a term given to a high bidder who fails to pay for the item he or she has won.
Dutch auction is a type of auction where the auctioneer calls the highest asking price and incrementally goes down until one bidder is willing to buy the item. The winning bidder pays for the last price called by the auctioneer.
English auction is a type of auction that starts with a minimum asking price and goes up incrementally. The item is won if the buyout price has been reached or if there is no other person willing to place a higher bid.
Featured auction are prominently placed on brochures, catalogues, category pages, or home pages of the auction service. Sellers usually pay for the placement.
Jump bid is a bid that is higher than the incremental bid.
Lot can be a single auction listing or a number given to an auction good for easier reference.
Market value is the highest price of the item when it is sold on the open market.
Maximum Bid is the highest amount a bidder is willing to pay for the item.
Opening Bid is the minimum bid.
Reserve Price is the lowest amount the seller is willing to accept for the item. Items with reserve prices are announced before the auction begins but the amount is not revealed.
Snipping is outbidding others during the last moment of the auction.