Auction: A method of selling an item, in a public forum, through open and competitive bidding. Auctioneer Person whom the seller engages to direct, conduct, or be responsible for a sale by auction Auctioneer’s assistant Assists the auctioneer to identify bidders from the podium, duplicates prices obtained on his own vendue roll and assists with telephonic bids. Auction Plan The plan for pre-auction, auction day and post auction activities. Auction Price The price of an item obtained through the auction method of marketing. Auction without reserve/Absolute Auction An auction where the item is sold to the highest bidder with no limiting conditions or amount. Absentee Bid (Commission bid) A procedure which allows a bidder to participate in the bidding process without being physically present. A bidder submits an offer prior to the auction. Appraisal The act or process of estimating values. Bank letter of Credit A letter from a bank, certifying that a named person is worthy of a given level of credit. Often requested from prospective bidders or buyers who are not paying with currency at auctions. Bid A prospective buyer’s indication or offer of a price he or she will pay to purchase an item at auction. Bids are usually in standardised increments established by the auctioneer. Bid ringing The illegal practice whereby two or more people agree not to bid against one another so as to deflate value. Also known as collusion and illegal in South African law. Broker Participation An arrangement for third-party brokers to register potential bidders for properties being sold at auction for a commission paid by the owner of the property or the auction firm. Buyer’s commission An advertised percentage of the high bid or flat fee added to the highest bid to determine the total contract price to be paid by the buyer. Also known as Purchaser’s commission. Buyer’s Number The number issued to each person who registers at an auction. Catalogue or brochure A publication advertising and describing the items available for sale at public auction. Clerk The person employed by the principal auctioneer or auction firm who records what is sold, to whom at what price. Commission The fee charged to the seller by the auctioneer for providing services, usually a percentage of the gross selling price of the items, established by contract prior to the auction. Conditions of sale The legal terms that govern the conduct of an auction, including methods of payment, terms, buyers premiums, possession, reserves and any other conditions 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. “One to take all” A method of sale whereby the successful high bidder wins the right to choose the number of lots he wants. After the high bidder’s selection, the lot is deleted from the group, and the second round of bidding commences for the sale of the balance of the goods. Opening bid The first bid offered by a bidder at an auction. On-Site Auction An auction conducted on the premises of the property of items being sold. Preview A specified date and time for prospective buyers to view and audit the items up for sale on auction. Reserve The minimum price that a seller is willing to accept for an item to be sold on auction. Ringman Assists the auctioneer to identify bidders during the auction. Subject to Confirmation (STC) An auction in which the seller reserves the right to establish a reserve price, to accept or decline any and all bids & to withdraw the item at any time prior to the announcement of the completion of sale. ‘Vendue roll” The document which is used to record the buyer’s number and price bid. “Voetstoots” Selling without warranties as to the condition and/or fitness of the items for a particular use. Buyers are solely responsible for examining and judging the property for their own protection. |