Real Estate Auction Glossary [ A - L ]
– a real estate term that estimates the highest price a property will fetch on the open market. The value is established by determining both the buyer and the seller have met all conditions for a fair sale. Fair sale conditions exist when each party acts with prudence and knowledge, meaning that they have sufficient knowledge of the property and are not determining its value outside of the
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known facts of the property.
– a document signed on the auction floor by the buyer immediately after being declared the winner of an auction
minimum bid auction
– a type of auction where the minimum starting bid is predetermined and announced prior to the beginning of the auction. Bidders cannot begin bidding lower than this amount, and the minimum bid is make known in the promotional brochure of the auction.
minimum opening bid
– the lowest bid that begins an auction. (see also - minimum bid auction)
– a type of auction where two or more properties are being sold. The properties may have a single or multiple sellers.
N – O – P
National Auctioneers Association
– a major organization and influence for auctioneers that is created to benefit each of its members. Responsibilities of the organization include agreeing upon and maintaining common ethical standards for all members, developing just laws and regulations by which each member is expected to follow, increasing public awareness of the auction process and events, and the general improvement of the auction industry.
– See absolute auction
– in the event a property is not sold, the seller may be required to pay the auctioneer or the auction house a fee
– the first bid made by a bidder at the start of an auction
– when the auction is held at the physical location of the property that is up for sale
– See cooperating broker
– an established and advertised date(s) and time(s) prospective buyers can come to physically examine the property that will be auctioned.
– Property Information Package (see bidder package)
– see auction
R – S
– a type of auction where a bidder is allowed to take the land properties other bidders have selected and combine them into a single property. This type of auction is often seen with a bidder’s choice type of auction.
– a predetermined amount a seller will accept for their property and specified prior to the beginning of an auction
– see auction with reserve
– see bid assistant
– see auction
– a type of auction where the bid on a property is placed in an envelope and sealed, hidden from all other bidders. The sealed envelope is then given to the auctioneer.
– a person or legal entity who has legal claim and rights to the ownership of real or personal property. Any benefits or rights attached to ownership are subject to a confirmation process where the seller has the right to accept or reject any bid made during an auction.
– see sealed bid
– a type of auction conducted by a government entity where the properties up for bid are acquired through the non-payment of property taxes by the owner.
– the specific contractual obligations set forth in the contract between the buyer and the seller
Terms and Conditions
– see conditions of sale
– the result of two separate bidders bidding the exact same amount for a property at the same time. Such instances are decided by the auctioneer as to whom the property should go to. (see also – silent auction)
– a type of auction where the trustee of the property is managing the sale
– see reserve price
– see live Internet auction
– see “As Is”
– this occurs when a reserve price is set and the auction does not receive a bid that meets the reserve price, resulting in the property being removed from the auction block
winning bidder acknowledgement
– see memorandum