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Glossary of Auction Terms
Absentee Bid - a bid placed on property before the auction sale either placed by written consent or phone
and usually accompined with a certified check.
Absolute Auction - means to sell regardless of price.
Appraisal - is a defensible estimate or opinion of fair market value.
Auctioneer - is a person who calls bids to act as a medium between a seller and a buyer.
Bidder - is a person who places an earnest money bid on real or personality property at public auction.
Buyers Premium - a buyers premium is a percentage add-on to the high bid to become part of the total
purchase price.
CAI - Certified Auctioneers Institute (University of Indiana).
CREA - Certified Real Estate Appraiser.
Fair Market Value - is the price at which the property would change hands between a willing buyer and a
willing seller, neither being under compulsion or duress to buy or to sell and both having reasonable knowledge of revelant facts.
ISA - International Society of Appraisers
Minimum Bid - The owner sets a lowest possible price for which property will sell. He or she must be
careful in choosing a minimum price, for if it is set to high, it will discourage people from attending the auction.
Personal Property - property that can be transferred by the form of a simple bill of sale.
Real Property - is property that must be transferred at sale through the from of a deed.
Ringman - is a person who acts as a bid assistant at public auction to help the auctioneer in securing bids.
Secured party - usually a lending institution at which time a loan is made to a borrower, real or personal
property is pledged as security until full repayment is made to the lender.
Seller Confirmation - means the seller has the right to accept or reject the highest bid..
UCC- Uniform Commercial Code- a filing system used nationally whereas a lending institution can file a
promissory note signed by the borrower in the county clerks office usually in the borrowers residence state to secure repayment of monies lent on personal property. The personal property acts as collateral to the
lender until the promissory note has been paid back in full.
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