Online auctions have become an increasingly popular way to buy and sell items from the comfort of your own home. If you’re new to this exciting world, the terminology might initially seem overwhelming. To help you navigate online auctions confidently, we at Double S Auctions have created this beginner’s guide to common auction terms. Whether you’re bidding on antiques, collectibles, or estate items, knowing the auction terminology can make your experience more enjoyable and successful.
Absolute Auction
An absolute auction is one in which the property is sold to the highest bidder, regardless of the bid amount. Online platforms often use this method to attract more participants since there is no minimum reserve price.
Appraisal
An appraisal is a professional evaluation of an item’s value. Online auctions often provide detailed descriptions and photos, but it’s wise to conduct your own research or seek an expert opinion for high-value items. For guidance on appraisals, visit the American Society of Appraisers.
As-Is
When an item is sold as-is in an online auction, it means there are no warranties or guarantees regarding its condition. Be sure to carefully review photos, descriptions, and any available condition reports.
Bid
A bid is an offer you make to purchase an item at a specific price. Online auctions typically display the current highest bid and allow you to enter your offer directly on the platform.
Bid Increment
A bid increment is the minimum amount by which a bid must increase. Online auction platforms automatically set and display the increment, ensuring a smooth bidding process.
Buyer’s Premium
A buyer’s premium is an additional fee added to the winning bid price, often expressed as a percentage. For instance, if you win an item for $1,000 and there’s a 10% buyer’s premium, your total cost will be $1,100. To understand more about buyer’s premiums, check out Auction Law Resources[SD1] .
Catalog
The catalog is a detailed list of all items up for auction. Online auction platforms make these catalogs easily accessible, allowing participants to browse and search items before placing bids.
Commission
The commission is the fee the auction house charges the seller for facilitating the sale. Online auctions often display this information upfront for transparency.
Consignor
A consignor is a person or entity selling items through the auction. If you’re looking to sell items online, consigning through Double S Auctions can connect your items with a broad audience.
Hammer Price
The hammer price is the final bid price at which an item is sold. In online auctions, this price is displayed at the end of the bidding process. Additional fees like the buyer’s premium or shipping costs may apply.
Lot
A lot refers to an individual item or group of items offered as a single unit for bidding. Online auction platforms clearly label each lot with descriptions and photos for easy browsing.
No Reserve Auction
A no reserve auction means there is no minimum price set for the item. This type of online auction often results in competitive bidding and quicker sales. Read more about no reserve auctions in the Auction GAuide.[SD2]
Outbid
To be outbid means another bidder has offered a higher price than your last bid. Online platforms provide real-time notifications to keep you informed.
Proxy Bid
A proxy bid allows you to set a maximum amount you’re willing to pay. The online system automatically bids on your behalf, up to your limit, saving you time and effort.
Reserve Price
A reserve price is the minimum amount a seller is willing to accept for an item. If bidding does not meet this price, the item will not be sold.
Starting Bid
The starting bid is the opening price for an item. Online auctions often set low starting bids to encourage participation.
Terms and Conditions
The terms and conditions outline the rules of the auction. These include payment methods, shipping options, and buyer responsibilities. Always review these before placing a bid online.
Why Understanding Auction Terms Matters
Knowing these terms can make a world of difference for newcomers. Not only will you feel more confident, but you’ll also avoid common mistakes like overbidding or misunderstanding fees. At Double S Auctions, we strive to make online auctions a seamless and enjoyable experience for all participants, whether you’re a seasoned bidder or trying it for the first time.
Participating in Online Auctions
Online auctions offer convenience and accessibility for buyers and sellers alike. Double S Auctions hosts online events throughout the year, providing a user-friendly platform and excellent customer support for Amarillo residents and beyond.
Ready to Get Started?
Visit Double S Auctions to explore our upcoming online auctions and discover how easy and rewarding online bidding can be! We offer a user-friendly platform for online bidding, with a wide variety of items and excellent customer support.
Double S Auctions is a local and family-owned business that provides Auction Services online, at your location, or from our offices. We’re experts in Real Estate Sales our Auctioneer Contractors take pride in our reputation for creating a trusted and comfortable setting for buyers, sellers, and donors alike. We are located in Amarillo, Texas and you can Contact Us today to find out more!