Auction Term Glossary

Auction Glossary…

What is an Auction?  An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder. In economic theory, an auction may refer to any mechanism or set of trading rules for exchange.

Absolute Auction: all items in the auction will be sold to the highest bidder, regardless of the bid. There is no reserve or minimum on the item for bid.

Auction With Reserve: some or all items in the auction have a minimum bid that must be reached by the bidder before the auctioneer can sell the item to the bidder. This type of auction is reserved mainly for property with a high value such as construction equipment, homes or commercial real estate.

“As-Is” or “Where-Is”: there is no warranty on the merchandise and the bidder is responsible for removal from the auction location. This means that the bidder must rely on their own information to make bidding decisions. The bidder is responsible to inspect and move the merchandise.

Choice: auctioneers use this buying option when more than one product is being offered for sale. The bidder may bid for an individual item, and the winning bidder may take as many of the set as they wish. If the bidder does not want them all, then they are for sale at the same price to any bidder.

All For One Money: multiple items are being offered for sale and what you bid is one price for all of the items. Bids for individual items are not accepted.

So Much Each & All Go: multiple items are being offered for sale and the bidder’s price is per item, however; the bidder must take all the items.

Sold: when the auctioneer says the word “sold” or the gavel falls after the bidding has ceased, the item is sold as the auctioneer directs to the clerk. The bidding cannot e reopened after the word “sold” is said.

Final Word: the auctioneer has the final word in all bidding situations. If the ringman took your bid and the auctioneer did not see the bid, the item is sold as the auctioneer directs. The staff at The East L.A. Auction Company is happy to provide you with further information and to answer any of your questions about the auction process.