.
There are many terms and abbreviations in the auction world. We've put together a list of some of those, as well as answers to the most frequently asked questions. This information can help beginners (and experienced auction-goers) understand and enjoy the auction experience.
A
Absentee Bid - A bid on a specific lot left in advance of the auction with someone by a bidder who will not attend.
Absolute Auction - See "auction without reserve."
Appraisal - the act or process of estimating value.
As Is - The first two words taught to new students in auction school. It means selling assets without any warranty as to their condition and merchantability for a particular use. Often used "as is - where is".
Auction - The sale of property by means of exchanges between an auctioneer and bidders whereby the auctioneer declares a sale to the highest, or most favorable bidder, to form a contract of sale between that bidder and the seller.
Auction Fever - The rush of competitive excitement that seizes some bidders during the bidding process.
Auction Subject to Seller Confirmation - This is a variation on an "auction with reserve." The auctioneer brings the top bid to the seller who then accepts or rejects it.
Auction with Reserve - The seller reserves the right to accept or reject any and all bids, or to withdraw the property at any time prior to the announcement of the completion of the sale. See also "reserve price."
Auction without Reserve - The property will be sold to the highest bidder regardless of price and with no contingencies. The seller may not bid, and the auctioneer may not refuse to accept a bid. Commonly called an "absolute auction."
Auctioneer - The person engaged by the seller to conduct the auction.
B
Bank Letter of Credit - An auctioneer may require an unknown person to provide a letter from his bank certifying creditworthiness to a stated level before he will be registered to bid at the auction, usually for real estate or large purchases.
Bid - The amount a prospective buyer signals the auctioneer he would pay to buy the lot during bidding.
Bidder - One who places a bid.
Bid Card - A card exhibiting a registered bidder's bid number to be used for bidding in the auction. Also called a bidder's card, Buyer's number or Buyer's Card.
Bidder's choice - is a method of selling that allows the winning bidder to buy one or several of a group of items. For example, if a dozen collectible knives were up for sale and the final selling price was $25, the winning bidder would have the choice of buying from one to all twelve knives at $25 a piece.
Bid Increment - the standardized amount an item increases in price after each new bid. The auctioneer sets the increment, which rises according to the present high bid value of an item.
Bid Package - A compilation of materials, information, and terms relevant to the auction and the lots to be sold that is given to each bidder upon registration, usually for a real estate auction.
Bid Spotter - See "ring man"
Block - While it can be a podium or raised platform, it's any point from which the auctioneer cries the bids. Lots come to the block to be offered for sale.
Bonded - Some states that license auctioneers require them to purchase surety bonds to protect those who deal with them. A good question to see if your auctioneer is following all laws.
Book an Auction - When an auctioneer enters into a contract with a seller to sell property at auction.
Buyer's Premium - The third and fourth words taught to new students in auction school. A marketing tool increasingly used by auctioneers, it's a surcharge that is a stated percentage added to the high bid for a lot to determine the lot's final selling price to be paid by the buyer. [Note: Wayne Bancroft Auctions does not charge Buyer's Premiums except on Real Estate auctions and absentee bid services].
Buy-Back or Bid-Back - When a seller bids on a lot and "buys" it back to protect it against a sacrifice to the highest bidder whose bid is insufficient in the view of the seller.
C
Caveat Emptor - The two most important words for prospective buyers. It is an ancient Latin axiom that means, "Let the buyer beware." It reminds buyers that they take the risk of the quality and condition of the property they purchase.
Chant - The rhythmic combination of numbers and separating filler words called by the bid caller on a lot. The chant is comprised of two numbers - the amount that has been bid for the lot, and the next higher increment that the bid caller is seeking in the bidding. The single-most important characteristic of a good chant is clarity.
Choice or Choice-out - A selling method auctioneers sometimes use with similar items that are offered in a "variable" lot. Bidders compete and the highest bidder gains control. That bidder has the "choice" to select any one piece from the lot for the amount of his high bid, as well as the "choice" to select additional pieces from the lot, again paying the amount of his high bid for each additional piece taken. After this bidder has completed his selection, if any items remain in the lot, one or more additional rounds of bidding will follow the same procedure until all items in the lot have been sold. See also bidder's choice.
Clerk - An auction worker who records each lot sold and marks the identity of the seller, buyer, and amount of the selling price. They are concentrating on every word spoken - so please don't distract or ask questions of the clerk!
Commission - The fee the auctioneer charges a seller for providing certain services to sell property at auction. The commission is usually a stated percentage of the gross selling price of the property.
Conditions - See "terms."
Consignment auction - An auction comprised of goods offered for sale by multiple sellers.
Consignor - A seller who places goods with another for sale, such as with an auctioneer.
Contract - "A promissory agreement between two or more persons that creates, modifies, or destroys a legal relation."
D
Disclosure - The best insulator against liability an auctioneer can have. Auctioneers should disclose whatever information they possess that sellers and bidders need to make informed and intelligent financial decisions regarding the auction.
Due Diligence - The process of investigating and gathering information necessary to make an informed and intelligent decision about an important matter, such as a prospective buyer examining the authenticity, condition, quality, and status of property to be sold.
E
Estate - A person's property, both real (i.e. real estate) and personal. One's property is his estate whether the person is alive or dead.
Ethical - The number one characteristic of the best auctioneers.
F
Fake - A worthless imitation passed off as genuine and valuable.
Filler Words - Words an auctioneer blends into his chant to break up the numbers called and give the chant a smooth, rhythmic quality: I'm bid 5 would he give 10 . . . ."
Fraud - The misrepresentation of a material fact that causes another to rely on the misrepresentation and be damaged. Always look the item over very carefully.
G
Gavel - Hammer used by an auctioneer at some forms of auction.
GPPA - Initials found after some auctioneers" names that mean "Graduate Personal Property Appraiser." A designation an auctioneer can earn by meeting certain educational and experience requirements as defined by the Auction Marketing Institute.
H
Hammer Price - The selling price of a lot or item to the highest bidder.
Heat of the Auction - Auctioneers want to sell the best items in the "heat of the auction" when the bidding interest and money to be spent are the greatest.
I
Introducer - At some auctions, a member of the auction crew (not the auctioneer) will describe each lot to the audience before it is opened to bidding.
J
Jump the Bid - A bidder strategy to knock out competition by bidding an amount higher than what the auctioneer is requesting.
L
Late Bid - A bid seen by the auctioneer after a lot has been sold. It is meaningless and ineffective to upset the contract of sale already formed.
License - About half the states have some form of license law for auctioneers. The State of Michigan currently has a voluntary Auctioneer Registration.
Lot - A defined article or group of articles that is the subject of a separate sale. Each offering by the auctioneer is a lot.
M
Market Value - A nebulous term that refers to the highest price certain property will bring in an open, fair, and competitive selling environment. Markets can be defined as collectors',retail, wholesale, and down to "fire sale." Markets can also vary in size from worldwide, to national, to regional, to statewide, to local.
Marketing - A wide-ranging business activity that encompasses both merchandising and selling activities. Auctioneers refer to marketing as the advertising and promotional efforts they make to attract potential buyers to their auctions.
Minimum Opening Bid - An auction in which the auctioneer will only accept bids at, or above, the amount of the disclosed, opening bid.
Misrepresentation - See "fraud."
MSAA - Michigan State Auctioneers Association.
N
NAA - National Auctioneers Association, and organization of over 6,000 professional auctioneers headquartered in Overland Park, Kansas.
No-Sale Fee - A fee assessed a seller by an auctioneer for offering a lot when the lot does not sell.
O
On-Site Auction - An auction conducted on the premises where the property is located that is being offered for sale.
One Money - When two or more items are sold in a single lot for the highest amount bid.
P
Picker - A person who searches for and acquires goods of value for the purpose of reselling them for profit through various channels, including auctions. Pickers are an important component in auction sales as they bring many of the items to market that auctioneers sell.
Preview - A designated time period for prospective buyers to view and inspect the property to be offered for sale.
Public Auction - An auction that is advertised and open to the public to bid on the property offered for sale.
R
Reproduction - An exact or close imitation of an item, usually worth far less than the original.
Reserve - A predetermined, minimum threshold price a seller will accept to sell certain property at auction. It is a safeguard against a sacrifice of the seller's assets. See "auction with reserve."
Retraction - When a bidder withdraws a bid prior to the auctioneer declaring a sale. A bidder's retraction revives no previous bid.
Ring Man - Auction worker who assists the auctioneer by providing prospective bidders with information about the lots, and also spots bidders. Commonly referred to as a ring man, bid spotter, or ground man.
Rolling Back - When an auctioneer cries decreasing numbers in an effort to tempt a bidder to jump in and start the bidding on a lot. Often times if you listen to the first price an auctioneer calls out, that is the price he is estimating that item will sell for.
S
Security Interest - "An interest in personal property or fixtures which secures payment or performance of an obligation . . . ". UCC section 1-201 (37). The property becomes "collateral" for a promise to repay a debt. This is handled in the contract between the seller and the auctioneer and liens are paid out of the seller settlement.
Set In Price - See "starting the bid."
Sold! - Music to an auctioneer's ears.
Starting the Bid - When an auctioneer makes the opening bid to kick off the bidding.
T
Terms - The provisions for the auction announced at the beginning that will become the binding details of the contracts of sale formed between the seller and respective high bidders.
Tie Bid - A figment of some people's imagination. A tie bid exists in an auction only if the auctioneer mistakenly takes the same bid from two different bidders and then declares a sale to one of them.
Times the Money - A selling method whereby an auctioneer sells multiple items in one lot under the term that the lot's final price will be calculated by multiplying the highest bid by the number of items comprising the lot.
Two ways - A selling method auctioneers sometimes use with items that would naturally go together, such as the pieces to a dining room set. The items are exposed to bidding individually, with the highest bid for each piece "held" and the items not sold. Then the items are exposed to bidding in aggregate. Whichever approach yields the highest total price is the way the items will be sold.
U
UCC - The Uniform Commercial Code: A body of commercial law that applies to auctions and has been largely adopted into law by every state except Louisiana.
W
Warranty - A promise that a statement of fact is true.
While the Money's Hot - See "heat of the auction."
Withdrawal - When an auctioneer does not sell a lot because it failed to reach its reserve price.
A
Absentee Bid - A bid on a specific lot left in advance of the auction with someone by a bidder who will not attend.
Absolute Auction - See "auction without reserve."
Appraisal - the act or process of estimating value.
As Is - The first two words taught to new students in auction school. It means selling assets without any warranty as to their condition and merchantability for a particular use. Often used "as is - where is".
Auction - The sale of property by means of exchanges between an auctioneer and bidders whereby the auctioneer declares a sale to the highest, or most favorable bidder, to form a contract of sale between that bidder and the seller.
Auction Fever - The rush of competitive excitement that seizes some bidders during the bidding process.
Auction Subject to Seller Confirmation - This is a variation on an "auction with reserve." The auctioneer brings the top bid to the seller who then accepts or rejects it.
Auction with Reserve - The seller reserves the right to accept or reject any and all bids, or to withdraw the property at any time prior to the announcement of the completion of the sale. See also "reserve price."
Auction without Reserve - The property will be sold to the highest bidder regardless of price and with no contingencies. The seller may not bid, and the auctioneer may not refuse to accept a bid. Commonly called an "absolute auction."
Auctioneer - The person engaged by the seller to conduct the auction.
B
Bank Letter of Credit - An auctioneer may require an unknown person to provide a letter from his bank certifying creditworthiness to a stated level before he will be registered to bid at the auction, usually for real estate or large purchases.
Bid - The amount a prospective buyer signals the auctioneer he would pay to buy the lot during bidding.
Bidder - One who places a bid.
Bid Card - A card exhibiting a registered bidder's bid number to be used for bidding in the auction. Also called a bidder's card, Buyer's number or Buyer's Card.
Bidder's choice - is a method of selling that allows the winning bidder to buy one or several of a group of items. For example, if a dozen collectible knives were up for sale and the final selling price was $25, the winning bidder would have the choice of buying from one to all twelve knives at $25 a piece.
Bid Increment - the standardized amount an item increases in price after each new bid. The auctioneer sets the increment, which rises according to the present high bid value of an item.
Bid Package - A compilation of materials, information, and terms relevant to the auction and the lots to be sold that is given to each bidder upon registration, usually for a real estate auction.
Bid Spotter - See "ring man"
Block - While it can be a podium or raised platform, it's any point from which the auctioneer cries the bids. Lots come to the block to be offered for sale.
Bonded - Some states that license auctioneers require them to purchase surety bonds to protect those who deal with them. A good question to see if your auctioneer is following all laws.
Book an Auction - When an auctioneer enters into a contract with a seller to sell property at auction.
Buyer's Premium - The third and fourth words taught to new students in auction school. A marketing tool increasingly used by auctioneers, it's a surcharge that is a stated percentage added to the high bid for a lot to determine the lot's final selling price to be paid by the buyer. [Note: Wayne Bancroft Auctions does not charge Buyer's Premiums except on Real Estate auctions and absentee bid services].
Buy-Back or Bid-Back - When a seller bids on a lot and "buys" it back to protect it against a sacrifice to the highest bidder whose bid is insufficient in the view of the seller.
C
Caveat Emptor - The two most important words for prospective buyers. It is an ancient Latin axiom that means, "Let the buyer beware." It reminds buyers that they take the risk of the quality and condition of the property they purchase.
Chant - The rhythmic combination of numbers and separating filler words called by the bid caller on a lot. The chant is comprised of two numbers - the amount that has been bid for the lot, and the next higher increment that the bid caller is seeking in the bidding. The single-most important characteristic of a good chant is clarity.
Choice or Choice-out - A selling method auctioneers sometimes use with similar items that are offered in a "variable" lot. Bidders compete and the highest bidder gains control. That bidder has the "choice" to select any one piece from the lot for the amount of his high bid, as well as the "choice" to select additional pieces from the lot, again paying the amount of his high bid for each additional piece taken. After this bidder has completed his selection, if any items remain in the lot, one or more additional rounds of bidding will follow the same procedure until all items in the lot have been sold. See also bidder's choice.
Clerk - An auction worker who records each lot sold and marks the identity of the seller, buyer, and amount of the selling price. They are concentrating on every word spoken - so please don't distract or ask questions of the clerk!
Commission - The fee the auctioneer charges a seller for providing certain services to sell property at auction. The commission is usually a stated percentage of the gross selling price of the property.
Conditions - See "terms."
Consignment auction - An auction comprised of goods offered for sale by multiple sellers.
Consignor - A seller who places goods with another for sale, such as with an auctioneer.
Contract - "A promissory agreement between two or more persons that creates, modifies, or destroys a legal relation."
D
Disclosure - The best insulator against liability an auctioneer can have. Auctioneers should disclose whatever information they possess that sellers and bidders need to make informed and intelligent financial decisions regarding the auction.
Due Diligence - The process of investigating and gathering information necessary to make an informed and intelligent decision about an important matter, such as a prospective buyer examining the authenticity, condition, quality, and status of property to be sold.
E
Estate - A person's property, both real (i.e. real estate) and personal. One's property is his estate whether the person is alive or dead.
Ethical - The number one characteristic of the best auctioneers.
F
Fake - A worthless imitation passed off as genuine and valuable.
Filler Words - Words an auctioneer blends into his chant to break up the numbers called and give the chant a smooth, rhythmic quality: I'm bid 5 would he give 10 . . . ."
Fraud - The misrepresentation of a material fact that causes another to rely on the misrepresentation and be damaged. Always look the item over very carefully.
G
Gavel - Hammer used by an auctioneer at some forms of auction.
GPPA - Initials found after some auctioneers" names that mean "Graduate Personal Property Appraiser." A designation an auctioneer can earn by meeting certain educational and experience requirements as defined by the Auction Marketing Institute.
H
Hammer Price - The selling price of a lot or item to the highest bidder.
Heat of the Auction - Auctioneers want to sell the best items in the "heat of the auction" when the bidding interest and money to be spent are the greatest.
I
Introducer - At some auctions, a member of the auction crew (not the auctioneer) will describe each lot to the audience before it is opened to bidding.
J
Jump the Bid - A bidder strategy to knock out competition by bidding an amount higher than what the auctioneer is requesting.
L
Late Bid - A bid seen by the auctioneer after a lot has been sold. It is meaningless and ineffective to upset the contract of sale already formed.
License - About half the states have some form of license law for auctioneers. The State of Michigan currently has a voluntary Auctioneer Registration.
Lot - A defined article or group of articles that is the subject of a separate sale. Each offering by the auctioneer is a lot.
M
Market Value - A nebulous term that refers to the highest price certain property will bring in an open, fair, and competitive selling environment. Markets can be defined as collectors',retail, wholesale, and down to "fire sale." Markets can also vary in size from worldwide, to national, to regional, to statewide, to local.
Marketing - A wide-ranging business activity that encompasses both merchandising and selling activities. Auctioneers refer to marketing as the advertising and promotional efforts they make to attract potential buyers to their auctions.
Minimum Opening Bid - An auction in which the auctioneer will only accept bids at, or above, the amount of the disclosed, opening bid.
Misrepresentation - See "fraud."
MSAA - Michigan State Auctioneers Association.
N
NAA - National Auctioneers Association, and organization of over 6,000 professional auctioneers headquartered in Overland Park, Kansas.
No-Sale Fee - A fee assessed a seller by an auctioneer for offering a lot when the lot does not sell.
O
On-Site Auction - An auction conducted on the premises where the property is located that is being offered for sale.
One Money - When two or more items are sold in a single lot for the highest amount bid.
P
Picker - A person who searches for and acquires goods of value for the purpose of reselling them for profit through various channels, including auctions. Pickers are an important component in auction sales as they bring many of the items to market that auctioneers sell.
Preview - A designated time period for prospective buyers to view and inspect the property to be offered for sale.
Public Auction - An auction that is advertised and open to the public to bid on the property offered for sale.
R
Reproduction - An exact or close imitation of an item, usually worth far less than the original.
Reserve - A predetermined, minimum threshold price a seller will accept to sell certain property at auction. It is a safeguard against a sacrifice of the seller's assets. See "auction with reserve."
Retraction - When a bidder withdraws a bid prior to the auctioneer declaring a sale. A bidder's retraction revives no previous bid.
Ring Man - Auction worker who assists the auctioneer by providing prospective bidders with information about the lots, and also spots bidders. Commonly referred to as a ring man, bid spotter, or ground man.
Rolling Back - When an auctioneer cries decreasing numbers in an effort to tempt a bidder to jump in and start the bidding on a lot. Often times if you listen to the first price an auctioneer calls out, that is the price he is estimating that item will sell for.
S
Security Interest - "An interest in personal property or fixtures which secures payment or performance of an obligation . . . ". UCC section 1-201 (37). The property becomes "collateral" for a promise to repay a debt. This is handled in the contract between the seller and the auctioneer and liens are paid out of the seller settlement.
Set In Price - See "starting the bid."
Sold! - Music to an auctioneer's ears.
Starting the Bid - When an auctioneer makes the opening bid to kick off the bidding.
T
Terms - The provisions for the auction announced at the beginning that will become the binding details of the contracts of sale formed between the seller and respective high bidders.
Tie Bid - A figment of some people's imagination. A tie bid exists in an auction only if the auctioneer mistakenly takes the same bid from two different bidders and then declares a sale to one of them.
Times the Money - A selling method whereby an auctioneer sells multiple items in one lot under the term that the lot's final price will be calculated by multiplying the highest bid by the number of items comprising the lot.
Two ways - A selling method auctioneers sometimes use with items that would naturally go together, such as the pieces to a dining room set. The items are exposed to bidding individually, with the highest bid for each piece "held" and the items not sold. Then the items are exposed to bidding in aggregate. Whichever approach yields the highest total price is the way the items will be sold.
U
UCC - The Uniform Commercial Code: A body of commercial law that applies to auctions and has been largely adopted into law by every state except Louisiana.
W
Warranty - A promise that a statement of fact is true.
While the Money's Hot - See "heat of the auction."
Withdrawal - When an auctioneer does not sell a lot because it failed to reach its reserve price.
Important Information For BUYERS of FIREARMS
The Federal Bureau of Alcohol, Tobacco, Firearms & Explosives has required Wayne Bancroft
Auction Service LLC to obtain a Federal Firearms License, and many of the rules have changed as of
02/13/24.
Please be sure you understand these changes before you bid on any firearms at our
auctions. The winning bidder on each firearm enters into a legal contract and will be held responsible
for completing the transaction under the following terms:
6% Michigan Sales Tax will be charged on each item.
All items are sold as-is, where-is, with no warranties of any kind.
Bidder must be 18 years of age to purchase rifles and 21 years of age to purchase handguns.
Buyer must have a current valid Driver’s License to purchase ANY firearm AND a permit to
purchase from the county in which they reside.
Every person purchasing any firearm (with the exception of paintball guns, pellet guns, or BB
guns) must fill out a Firearm Transaction Record (ATF Form 4473) & pass a background
check. The following infractions can cause you to fail a background check: felony
conviction of any type, misdemeanor crime of domestic violence, dishonorable discharge
from the Armed Forces, etc. DO NOT BID ON ANY FIREARMS IF YOU THINK YOU MAY NOT
PASS THE BACKGROUND CHECK!
Purchasers of handguns must have a purchase permit or a CPL License with a transfer tag.
Handguns can only be sold to Michigan residents.
The winning bidder, the payer, and the person filling out the Firearm Transaction Record
MUST BE THE SAME PERSON.
All guns are sold with a gun lock. The gun lock may not be removed on our premises. Gun
locks are $7.00 each. No refunds on gun locks.
All Firearms will be charged a $30 per firearm transaction fee.
Firearm pickup will be at an announced time at the office across the street (back of the gray
house). You must bring a paid receipt from the Office trailer, fill out Form 4473 & pass the
background check before taking possession of your purchase(s).
You must securely lock up your firearm in your vehicle if you are staying for the auction.
The Federal Bureau of Alcohol, Tobacco, Firearms & Explosives has required Wayne Bancroft
Auction Service LLC to obtain a Federal Firearms License, and many of the rules have changed as of
02/13/24.
Please be sure you understand these changes before you bid on any firearms at our
auctions. The winning bidder on each firearm enters into a legal contract and will be held responsible
for completing the transaction under the following terms:
6% Michigan Sales Tax will be charged on each item.
All items are sold as-is, where-is, with no warranties of any kind.
Bidder must be 18 years of age to purchase rifles and 21 years of age to purchase handguns.
Buyer must have a current valid Driver’s License to purchase ANY firearm AND a permit to
purchase from the county in which they reside.
Every person purchasing any firearm (with the exception of paintball guns, pellet guns, or BB
guns) must fill out a Firearm Transaction Record (ATF Form 4473) & pass a background
check. The following infractions can cause you to fail a background check: felony
conviction of any type, misdemeanor crime of domestic violence, dishonorable discharge
from the Armed Forces, etc. DO NOT BID ON ANY FIREARMS IF YOU THINK YOU MAY NOT
PASS THE BACKGROUND CHECK!
Purchasers of handguns must have a purchase permit or a CPL License with a transfer tag.
Handguns can only be sold to Michigan residents.
The winning bidder, the payer, and the person filling out the Firearm Transaction Record
MUST BE THE SAME PERSON.
All guns are sold with a gun lock. The gun lock may not be removed on our premises. Gun
locks are $7.00 each. No refunds on gun locks.
All Firearms will be charged a $30 per firearm transaction fee.
Firearm pickup will be at an announced time at the office across the street (back of the gray
house). You must bring a paid receipt from the Office trailer, fill out Form 4473 & pass the
background check before taking possession of your purchase(s).
You must securely lock up your firearm in your vehicle if you are staying for the auction.