A BUYERS PREMIUM WILL APPLY TO ALL PURCHASES, WHICH WILL APPEAR IN AS PER AUCTION TYPE.
Cash, cashiers check, wire transfer, business check and credit cards accepted. Complete invoice to be available during or after sale. All sales are final and are payable from buyer at the conclusion of the sale. A buyer's premium and sales tax will be added on all purchases unless tax exempt. Purchases must be removed from the premises in the time allocated as announced and/or posted by the Auctioneers. AUCTIONBID Company reserves the right to charge the purchaser for cost of storage and or disposal beyond the removal period. Items not picked up in the time allocated will be considered abandoned. NO purchases may be removed until all invoices are paid in full.
Limitations of liability:
For any reason whatsoever, an item purchased must be removed by purchaser or independent trucking companies. The buyer waives liability on the part of AUCTIONBID and further agrees that any obligation of said item is limited to the bid and paid for price item. Persons attending the auction preview, sale, or removal assume all risks of damage or of loss to person and property and specifically release and indemnify AUCTIONBID and sellers shall not be liable by reason of any defect in or condition of the premises in which the sale is held
Disclaimer of warranties:
Everything will be sold * AS IS WHERE IS, AS AVAILABLE WITH FAULTS* with no representations, expressed or implied. AUCTIONBID Company, as agent and seller, expressly disclaims any warranty as to fitness or usability of all assets, and the buyer expressly waives any claims in respect to any possible future use of any asset purchase for any purpose whatsoever. AUTIONBID Company seller and or advertising agents will not be held responsible for advertising inaccuracies or discrepancies. Prospective buyers are advised that AUCTIONBID Company does not guarantee the accuracy of description or condition of the subject property. Prospective buyers are urged to inspect all items, deductions will not be allowed on damaged goods since everything is sold *as is* and without recourse. No advice or information, whether written or verbal, obtained buy a prospective buyer from AUCTIONBID Company shall create any warranties or responsibility for items purchased. The purchaser hereby assumes and does not agree to indemnify and hold AUCTIONBID and seller harmless from any future claim which shall pertain to the fitness of use of the time being purchased.
The auctioneer reserves the right to withdraw from the sale any of the items, to sell items not listed, to group or subdivide one or more lots, or to sell all the items listed in bulk. Items are generally sold to the highest bidder but some may be subject to the seller's right of confirmation. The Auctioneer has the right to reject any nominal or fractional bid which he believes may negatively affect the sale.
AUCTIONBID may amend, change, modify discontinue or suspend any aspect of the auction sale without notice and without liability to prospective bidders. Additional terms and conditions of sale may be added and will be announced and /or posted on the premises prior to the auction. Contact us if you have any questions.
- Absentee bid – A bid placed with the auctioneer or an auctioneer’s assistant in advance of the auction. Usually offered at the auctioneer’s discretion to allow a bidder to participate without being present. An alternative to online bidding.
- Absolute auction – An auction where the property is sold to the highest qualified bidder without the seller’s opportunity to reject the bid. An absolute auction is established by the auctioneer at the time the bidding is opened. Sometimes called an auction without reserve.
- Appraisal – An opinion of value provided by a certified appraiser. A bidder who wants an appraisal may hire a certified appraiser who can then schedule access to the property. Because all properties are sold “as is” and without contingencies, the existence or acquisition of an appraisal has no bearing on the sale.
- “As-Is” – Selling a property in its current condition without any warranties or representations as to its condition or fitness for a certain use. Buyers are responsible for any examinations they feel necessary for their protection, but understand that the seller is not going to make any changes to the property.
- Auctioneer – The licensed individual overseeing the auction sale. It is recommended that sellers and buyers only work with auctioneers who are also accredited and are members of the National Auctioneers Association. In the case of a real estate sale, the auctioneer should also be a licensed broker or Realtor and member of the local, state, and national real estate associations.
- Auction Listing Agreement – The contract signed between the auction company and the owner/seller. The Auction Contract lists the duties, responsibilities, expectations, and obligations of both parties, as well as providing protections for both. For real estate auctions, the Auction Listing Agreement is typically an exclusive right to sell.
- Auction marketing – The process whereby the public is notified of the auction buying opportunity. Because realized prices are achieved through competitive bidding, auction marketing must be compelling, thorough, accurate, and expertly disseminated in order to attract the largest possible pool of buyers. The ability of the auction company to effectively market the auction is critical to the outcome.
- Backup Bidder – The bidder with the second highest bid. In those rare instances where the high bidder fails to complete the transaction (forfeiting payment), the backup bidder may have an opportunity to make a purchase.
- Bid – An offer to buy at a certain price. A buyer’s premium is often added to a winning high bid to determine the final contract price.
- Bid Assistant (Ringman) – An auction staff member stationed in the audience to assist bidders and the auctioneer as they communicate throughout the auction.
- Bid calling – The verbal process used by the auctioneer to conduct the auction. Using a unique chant the auctioneer acknowledges bids and asks for increments in the bidding.
- Bid increments – The minimum amount of increase determined by the auctioneer to be required to place the next and subsequent bids. This is announced by the auctioneer in a live auction and prompted by the bidding platform in an onsite auction. Bid increments may change during the course of bidding based on bidding activity, bid levels, or other criteria at the discretion of the auctioneer.
- Bidder number – A unique number assigned a bidder at registration, used for identifying the bidder throughout the auction process.
- Broker Participation – Usually refers to the involvement of a licensed real estate agent or broker who is representing a prospective bidder. The broker for a buyer’s agent who properly registers with the auction company is due the advertised commission sharing arrangement if his or her bidder prevails in the auction and closes on the property. Individual auction terms & conditions provide additional details. (Agents/brokers are often involved in referring real estate for auction as well.)
- Buyer’s Premium or Buyer’s Fee – A percentage of the high bid, added to that bid to determine the final contract (purchase) price. For example a high bid of $100,000 with a 15% Buyer’s Premium would result in a contract price of $115,000 plus sales tax.
- Caravan auction – An auction event in which multiple properties will be marketed together, but sold individually on-site at staggered times.
- Cataloging – The process of putting auction items into groups or lots, writing descriptions of each lot, and supplying corresponding photographs. The end result is the catalogue bidders will use to peruse items available for bidding in the auction.
- Closing – The time at which final funds are exchanged and the property changes hands. Usually handled by a title company as proscribed in the Purchase Contract and occurring several weeks following the auction. The closing process is essentially the same for an auction sale as for any other traditional real estate transaction.
- Commission – The amount paid to licensed real estate agents and auctioneers who have participated in the sale according to published terms and agreements. Typically covered by the Buyer’s Premium.
- Conditions of sale – The terms governing the auction process and sale. Usually published in advance of the sale and announced by the auctioneer prior to opening the bidding.
- Contingency-free or non-contingent – The requirement that a bid on the property not have any conditions attached (such as contingencies for financing or inspections). A non-contingent bid/offer cannot obligate the seller beyond the published terms of the auction.
- Contract – The legally binding document signed by Seller and Buyer at the conclusion of the sale. The contract stipulates the responsibilities of each party.
- Contract price – The sum of the high bid and the Buyer’s Premium. This is the amount entered on the contract as the purchase price. For example a high bid of $100,000 with a 15% Buyer’s Premium would result in a contract price of $115,000 plus sales tax.
- Deposit or Earnest Money Deposit – A portion of the contract price paid by the buyer at the time of contact signing. The auction terms will state the deposit requirement. Deposits are credited toward the contract price and are usually non-refundable.
- Escrow – A legal arrangement in which the title company holds the deposit while preparing documents and making arrangements for the closing.
- Estate Auction – Items in an estate, including real estate, are being sold via competitive bidding at auction. This is different from an estate sale in which personal property is displayed with price tags for purchase over a multi-day period and unsold items are donated or otherwise disposed of.
- Gallery auction – An auction event in which multiple properties will be marketed together but sold individually from a central location such as a ballroom or meeting facility.
- Fair Market Value – The price at which seller and buyer agree to exchange property. Fair market value is driven by buyers’ willingness to purchase, not be sellers’ expectations.
- Fair warning – Typically issued just prior to the close of live or onsite bidding.
- Lot – One or more items offered for bidding. A lot could be a piece of real estate, and item in an estate, or a group of items being sold together.
- Listing Broker – The licensed real estate professional (broker or agent) who has the exclusive right to market a piece of real estate for sale. In the case of a real estate auction, the auctioneer is typically the listing broker, though in some instances there is a partnership established with an outside listing broker, with a clear legal delineation of duties and responsibilities.
- Minimum bid – Often used interchangeably with “reserve” and referring to the minimum bid which will be acceptable to the seller. Not usually disclosed. Bidding may begin below the minimum bid and the seller may accept a high bid that falls below his or her established minimum.
- National Auctioneers Association (NAA) – Founded in 1949, the NAA is the world’s largest professional association serving the auction profession. The association is dedicated to providing its professional members with educational programming and resources to help them advance themselves and, in turn, the industry. Members of the NAA abide by a strict Code of Ethics and are connected with an extensive network of auction professionals.
- No Reserve Auction – The seller has not established a minimum bid requirement or “reserve” on the auction.
- No-sale fee – The amount (percentage or flat rate) stipulated in the auction contract that the seller will pay the auction company if the property does not sell in the auction. Sometimes called a “pass fee.”
- Online or Internet bidder – A prospective buyer who is participating in the auction through an online bidding platform. For some auctions the online bidding may be offered for a period of weeks while in other cases it may only be offered simultaneously with the live auction. In the second scenario, the online bidder is competing in real time with bidders attending the live auction in person.
- Onsite Auction – An auction in which bidders can participate live at a prescribed date, time, and location. Often an onsite auction may also allow for simultaneous live online bidding.
- Onsite bidder – During a live auction, the bidders who have chosen to come to the auction location to participate in bidding.
- Opening bid – The preset level required for the first bid. Generally, this is simply the base bid increment. In higher valued properties the auctioneer may elect to set a higher opening bid. If the seller’s reserve is published, that value is generally also used as an opening bid. (If the reserve is not published, the opening bid should not be construed to be the reserve.)
- Preview – An opportunity for prospective bidders to view the property prior to the close of bidding.
- Property Information Package (PIP) – A booklet or package prepared by the auction company to assist prospective buyers in evaluating the property. A typical PIP might contain preliminary title commitment, plats or surveys, disclosures, warranty information, auction terms & conditions, a sample purchase contract or other helpful documents.
- Reserve, Seller’s Reserve, or Reserve Auction – The reserve is the minimum bid a seller has stated that he or she will accept at the auction. Usually not disclosed. If the high bid falls above the reserve, the auctioneer has the authority to declare the property sold. If the high bid falls below the reserve, the seller reserves the right to accept or reject it.
- Referring Broker – A licensed broker or real estate agent may refer a seller/property to the auction company and earn a percentage of the commission on the sale.
- Sealed bid – In a sealed bid auction, all bids are submitted to the auctioneer in writing to be opened at a predetermined deadline. Sealed bids typically must meet certain published criteria to be considered. The sealed bid method may also be used as a precursor to a live auction to qualify bidders for participation in successive rounds of live bidding.
- Seller’s commission – Any commission due by the seller is stipulated in the Auction Contract with the auction company.
- Telephone bidding – An option sometimes offered in a live auction whereby a bidder may pre-register and bid via a telephone connection with the auctioneer or bid assistant.
- Terms & Conditions – Rules of the auction that govern how the property is to be offered, how the bidding will be handled, and how the ultimate purchase will take place. Bidders must read and agree to the terms & conditions of the auction in order to register and receive a bidder’s number for participating in the auction.
- Tie bids – Occurs when two bidders bid the same amount. Credit for the bid is given to whichever bidder first had the bid on record (online auctions) or recognized by the auctioneer (live auction). The auction terms and conditions should address tie bid situations.
- “Yep!” – The exuberant sound a bid assistant or ringman utters to notify the auctioneer of a new bid.