Licensed Auctioneer
 
                                          
   
 
 
 
 
 
 
Terminology
Definition
Auction
An auction is a public sale in which the price is determined by bidding, and the item is sold to the highest bidder. To participate in an auction means to bid to obtain an item. The person who offers the highest bid wins the right to purchase the item at that price.
Bid
A bid is the offer of a specific amount of money on an item for sale. The bidder competes with other potential buyers, keeping in mind that the buyer with the highest bid is obliged to complete the purchase with the seller. Hence, a bid is the price you, the bidder, are willing to pay for an item up for auction.
Reserve Auction
This is an auction in which the item for sale has a reserve price. The reserve price is the lowest price at which a seller is willing to sell an item. Although the reserve price is not listed per se (the auction posting will be marked as "reserve met"), it can be extrapolated when a bidder bids at or above the reserve price. The high bid will automatically be elevated to the reserve price, providing the current high bidder with what the seller would agree to sell at.
Straight Auction
Also referred to as an absolute auction, this is an auction in which there is only one item up for sale, and there is no reserve price. The seller sets the opening bid and must respect the final price at the end of the auction.
Opening Bid The seller's opening bid, which sets the opening price.
Grading The process for determining the physical condition of an item. Different items have different grading systems.
Market Value The highest price a property will bring in the open market.
Maximum Bid
The highest price a buyer will pay for an item, submitted in confidence to an online auction service's automated bidding system to facilitate proxy bidding.
Minimum Opening Bid The mandatory starting bid for a given auction, set by the seller at the time of listing.
Reserve Price
The minimum price a seller will accept for an item to be sold at auction. This amount is never formally disclosed.
Starting Price The mandatory starting bid for a given auction, set by the seller at the time of listing.
 
 
 

 

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