Glossary of Auction Terms Absolute Auction: An Auction where the property is sold to the highest qualified bidder with no limiting conditions, contingencies or amounts. "As Is": Selling the property without warranties as to the condition and/or the fitness of the property for a particular use. Buyers are solely responsible for examining and judging the property for their own protection. Otherwise known as "As Is, Where Is" and "In its Present Condition." Auction: A method of selling Real Estate in a public forum through open and competitive bidding. Also referred to as: Public Auction, Auction Sale or Sale. Auction Listing Agreement: A contract executed by the Auctioneer and the seller which authorizes the Auctioneer to conduct the Auction and sets out the terms of the agreement and the rights and responsibilities of each party. This is also known as the Listing Agreement. Auction Marketing: The method of marketing real property utilizing the Auction Method of sale. Auction Price: The price of a property obtained through the Auction Method of marketing. Auction Value: The price which a particular property brings in open competitive bidding at Public Auction. Auction With Reserve: An Auction in which the seller or his agent reserves the right to accept or decline any and all bids. A minimum acceptable price may or may not be disclosed and the seller reserves the right to accept or decline any bid within a specified time. Auctioneer: The person whom the seller engages to direct, conduct, or be responsible for a sale by Auction. This person may or may not actually "call" the Auction. Bid: A prospective buyer's indication or offer of a price he or she will pay to purchase property at Auction. Bids are usually in standardized increments established by the Auctioneer. Bid Caller: The person who actually "calls," "cries" or "auctions" the property at an Auction, recognizing bidders and acknowledging the highest bidder. Commonly known as the Auctioneer. Bidder Number: The number issued to each person who registers at an Auction. Bidder Package: The package of information and instructions pertaining to the property to be sold at an Auction event obtained by prospective bidders at an Auction. Sometimes called a bidder packet or due diligence package. The bidder package includes property disclosures plus the terms and conditions of the property sale. Broker Participation: An arrangement for third-party Real Estate Agents/Brokers to register potential bidders for properties being sold at Auction for a commission. Buyer's Premium: An advertised percentage of the high bid or flat fee added to the high bid to determine the total contract price to be paid by the buyer. Carrying Costs: The costs involved in holding a property i.e. insurance, taxes, maintenance, management. Conditions of Sale: The legal terms that govern the conduct of an Auction, including acceptable methods of payment, terms, buyer's premiums, possession, reserves and any other limiting factors of an Auction. Usually included in published advertisements or announced by the Auctioneer prior to the start of the Auction. Due Diligence: The process of gathering information about the condition and legal status of assets to be sold. Hammer Price: Price established by the last bidder and acknowledged by the Auctioneer before dropping the hammer or gavel. Minimum Bid Auction: An Auction in which the Auctioneer will accept bids at or above a disclosed price. The minimum price is always stated in the brochure and advertisements and is announced at the Auctions. Opening Bid: The first bid offered by a bidder at an Auction. Preview: A specified date and time the property is available for prospective buyer viewing and audits. Also known as an Open House or Inspection. Reserve: The minimum price that a seller is willing to accept for a property to be sold at Auction. Also known as the reserve price. Reserve Auction: An Auction in which the seller reserves the right to establish a reserve price, to accept or decline any and all bids or to withdraw the property at any time prior to the announcement of the completion of the sale by the Auctioneer. See also Auction With Reserve. Terms and Conditions: The printed rules of the Auction and certain aspects of the Purchase & Sale Agreement that are read and/or distributed to potential bidders prior to an Auction sale.