By: Laura Evans
Knowing auction bidding terms will give you a better understanding about how to get your prize whether you are bidding at a silent auction, at an auction house or on a bidding website online.
Guide to Auction Bidding Terms
- Absentee bidder: An Absentee bidder is a bidder who leaves a bid for a specific item or items before the auction starts at an auction house.
- As is: The merchandise is sold without any guarantees and in its current condition. The winning buyer must still purchase the product even if the buyer discovers defects after the auction is completed.
- Auction: An auction is the process of selling a piece of merchandise to the highest bidder.
- Auctioneer: An auctioneer is the person who is conducting the auction in an auction house.
- Auction house: An auction house is the brick and mortar location where an auction is physically taking place.
- Bidding card: A bidding card lists a number that identifies a buyer during an auction.
- Box lots: A box lot is a lot that consists of several pieces of merchandise that is to be auctioned for one price.
- Buyer's premium: A buyer's premium is the percentage that the winning bidder must pay in addition to the winning bid. For example, if the winning bid is $100 and the buyer's premium is 15 percent, the buyer will be required to pay $115 at check out, plus any applicable taxes.
- Online auction: An online auction is an auction that is being held on a website. Sometimes the auction is held over a specific number of days. In other cases, an online auction is held in conjunction with a brick and mortar auction during a specific time period.
- Opening bid: An opening bid is the first bid made for a piece offered for sale.
- Phone bid: A phone bid is a bid that is made by a person over the phone during the auction as other people at the auction house are also bidding.
- Preview: A preview is a period of time before the auction where potential buyers are invited to inspect the merchandise that will be auctioned.
- Reserve: A reserve is the minimum that a seller will accept for a piece. For example, if the reserve is $500 and the bidding only reaches $300, the piece will be pulled from the auction. The reserve price is not always disclosed at the time of the auction.
- Silent auction: A silent auction is an auction that is usually held to benefit a charity or non-profit organizatiBidding at auctions won't just help you score a terrific bargain, it is also downright fun. Whether you are bidding at a silent auction, at an auction house or on a bidding website online, knowing auction terms will give you a better understanding about how to get your prize.
