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Auction Lingo: Terms
& Phrases and More
There are some basic terms and phrases that you will here at
almost every auction you attend and unless the auctioneer takes a moment to
explain what they mean you may be left not knowing what you are bidding on or
how much you are bidding. There are also
some basic terms associated with auctions that are important to understand when
buying or selling at auction.
"Choice" or "By The Piece": Many times like items are brought up to be
sold at the same time and rather than selling all of them together to one
person the auctioneer will say they are being sold By The Piece or the high
bidder has Choice. What this means is
that of however many items are being sold at that moment, the high bidder will
be able to choose how many and which ones they want. For instance, if there are 5 stoneware jugs,
the high bidder of $10 per jug can choose to take 1 up to all 5 for $10 a
piece. If the bidder takes less than the
full amount the remaining pieces go back up and the auctioneer will ask if
anyone else wants to purchase any of the remaining items for the same amount
that the previous high bidder just purchased them for. The first person to say yes will have choice
of the remaining items for that same price.
The auction runner will disperse the remaining items until they are
either all gone or no one wants to purchase them at that price. If there are still items left after this then
they will be brought back up to the auctioneer and bidding will begin again. If there is more than one item left and the
auctioneer is unable to get a bid for the items "by the piece" then
he/she will say that they will be sold all together for "one
money"...which takes us to the next phrase...
"One Money":
If you haven't figured it out already this term simply means that
everything the auctioneer has up for bid at that moment is being sold all
together, all for "one money".
So, if there is a tray of costume jewelry and it is being sold for
"one money" then the high bidder will get everything on that tray for
the highest bid amount and nothing more.
"Times the Money": This is a term that you really want to be
aware of as a bidder because if you are not paying attention and you go up to
pay your bill you may be shocked by the amount.
It is not a term that is used that frequently, but it is used. This term is used mainly to sell sets of
items such as dining chairs, or related collectibles, etc. Usually sets of things that should be sold
together and not broken up. How it works
is the highest bidder will be paying the high bid amount times the total number
of items. For instance, a set of 6
dining chairs being sold "times the money", and the high bid is $20
and so the high bidder is paying $20 x 6 = $120. The high bidder paid $20 per chair. Also, with "times the money" the
high bidder is buying all of the items not just a few. If you accidentally buy items in this manner
without realizing it there most likely is no recourse, you are expected to
complete your purchase and take your items.
To avoid this make sure you are aware of how the auctioneer is selling
an item or items at all given times.
"Reserve Price": A "reserve price" is a minimum
amount at which a seller is willing to sell an item for. Reserve prices are used mostly for large
value items and not for everyday household or misc. items. You will see reserve prices on homes being
auctioned because they have such high value and homeowners may want to sell at an amount to at least pay off a
mortgage, for instance. You may also see
reserve prices on jewelry, paintings, cars and things of that nature. The auctioneer can work the bidding on a
reserved priced item one of two ways, he/she may start the bid at the reserve
price which lets the bidder's know right away that the item needs to start here
or it will not be sold. The other is to
tell the bidder's there is a reserve price but not disclose what that price is
and start the bidding and once the bidding reaches a climax the auctioneer
either sells it because the reserve price was met or exceeded or tells the
bidders that the reserve price is not met and try to solicit more bids or end
the bidding without the item being sold.
"As Is" or "As Is Where Is": Items being sold "as is" or
"as is where is" are being sold in the state and/or condition in
which you are finding them, without any guarantees. The high bidder is buying items as they are
and once purchased the items become the buyer's responsibility. If a bidder makes a purchase and realizes
after the purchase that an item is damaged or an item is not what they
originally thought it was, there is no recourse, the bidder is stuck paying for
the item and completing the purchase.
There are no returns at an auction.
This is why it is essential to make good use of the preview period that
auction companies provide...which takes us to the next term...
"Preview": And it is as simple as the word
itself, the "preview" period before the start of an auction is the
time allotted for potential bidders to view items prior to bidding on
them. This is the time where you want to
look over items for damage or flaws and to determine if they are in a condition
which you would be willing to buy them.
Utilize preview periods because once you become the high bidder on an
item there is no backing out of the purchase.
You are buying items "as is" and stating that you were unaware
of damage is not an excuse for non-purchase.
"Absentee Bid": Many times when you are attending a live
auction an item may come up for bid that has an "absentee bid" which
is a bid that someone has left for an item, they have indicated to the auction
company the highest price they are willing to pay for that item and the
auctioneer bids for that item on their behalf until they either become the high
bidder and purchase the item or their maximum bid is surpassed by another
bidder in the crowd. The auctioneer will
inform the crowd that there is an absentee bid for an item before the bidding
begins. Absentee bids are used when
someone is unable to attend an auction and has interest in purchasing an
item. If the absentee bidder is the
successful winning bid the auction company will notify them immediately or the
next day and arrange for payment and pick-up of the item/s.
"Buyer's Premium”: The buyer's premium is a charge added to your
purchases by the auction company and is usually a percentage added to your
total before tax. You will sometimes see
this term abbreviated BP. The buyer's
premium plays an integral part of maintaining the auction company's expenses
and that is why many auction companies charge a buyer's premium though not all
companies do. Some companies will offer
a discount on the buyer's premium if they pay with cash or check. For instance, a company charges a 10% buyer's
premium but if a bidder pays with cash or check they may offer a 3% discount
which means you will pay a 7% buyer's premium.
"Consignment": Most of the items being sold at an auction
are being sold on consignment. People
bring items they wish to sell to the auction company which sells the items at
auction and pays the consignor after the items are sold minus the commission
rate. Auction companies will provide consignors
with a consignment agreement which outlines all the terms of the sale of their
items, it outlines the commission fees that will be charged for the sale of
those items, and it also details other pertinent information such as is items
do not sell and what will happen with those items, among other important
details. Each auction company develops
their own commission rates and terms of sale for consigning items. It's important to read the consignment
agreement and fully understand the terms prior to signing it and agreeing to
it.
