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Auction Glossary

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.

Buyer’s Premium: the Buyer’s Premium is a percentage additional charge on the winning bid at auction. It is charged by the auction company to cover administrative expenses associated with conducting the auction and goes directly to the auction firm for their services, not to the seller. Buyer’s Premium charges can vary depending on the services offered and can include additional fees for the use of credit cards to be used to pay for auction purchases.
Note: Buyer’s Premium and Credit Card Fees appear as separate charges on your invoice.

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 all products in the set, then they are for sale at the same price to any bidder.

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 American Auction Company is happy to provide you with further information and to answer any of your questions about the auction process.

Maximum Bid (Max Bid): this is the highest amount a bidder is willing to pay for auction property. It does not mean that the bidder will pay this amount, but if other interested bidders compete on the property, the maximum bid will be represented until bidding stops or until the bidder’s maximum bid has been overtaken by another bidder.

Proxy Bid: a bid that is left with the auction firm. This is typically done online where the bidder tells the auction firm what their top bid will be if bidding advances on the property they wish to purchase.

Sold or Closed: when the auctioneer says the words "sold" or “closed,” or the gavel falls after the bidding has ceased, the item is sold as the auctioneer directs to the clerk. The bidding cannot be reopened after the word "sold" is announced.