Glossary of Terms

APPRAISAL

To ascertain a value on a certain item at the time of appraisal.  The appraisal is based on the condition and quality of the item and its demand on the local or international market.  Appraisals may vary depending on which region of the country the appraisal is done.

PRE-SALE ESTIMATE

This is a value that the auction firm or an appraiser has placed on one or more items prior to the sale.  This estimate is a guideline for many consignors to consider and usually results in having an auction sale conducted.

PASS

A terminology used when there is no interest or value established on an item or lot.

CONDITION OF SALE

Terms that are part of a contract with the auction firm and buyer.  The auctioneer will announce the terms of sale prior to each auction which will include the “buyers premium” to be charged, all items sold without any guarantees or warranties, buyers responsible for any and all purchasers and the purchaser cannot renege on a bid once the item has been sold, removal of goods and other conditions that may apply to a particular sale.

CONSIGNOR

A person of firm who gives goods to an auction to be sold at an agreed time and place.  A contact is signed with the consignor and includes commission fee and other costs that may be incurred by the auctioneer, which the consignor agrees to.

FAIR MARKET VALUE

The value of an item on a given day where the supply and demand of that item will be agreed upon by a willing buyer and seller.  The auction procedure has been a successful method in establishing this value.

HAMMER PRICE

When the auctioneer lowers the gavel and says, “SOLD”!

LOT

A description of an item that is to be sold.

RESERVE PRICE

A price has been given to the auction firm that must be obtained at time of sale on a specific lot; otherwise it will not be sold.  Reserve prices should not be accepted when the auction firm is conducting an “Unreserved Auction”.

ABSENTEE BID

An amount that is given to the auctioneer or auction firm by a buyer who is unable to attend the sale in person and wishes to place bids on one or more items.  This service is usually extended to regular bidders who have established an association of trust with the auction firm.  Some firms do not extend this privilege because of absentee bids that have not been finalized after the sale has been completed.

AS IS

The item is sold without any warranty or guarantee and with all faults.

BUYERS PREMIUM

A handling fee charged on the final sale of an item, which may vary from 3% to 15% or more.  This charge may vary from one auction firm to another.  Buyer’s premiums are now accepted internationally and include art and antique auctions, machinery equipment, vehicles, jewelry, coins, furniture and other items subject to being sold by auction.  Buyers are fully aware of these fees and do not effect the competitive bidding at an auction sale.