An Easy Auction Glossary for Beginners

Public auctions can be an exciting and fun affair, especially when you know what you’re doing there. However, in some cases, an auction beginner can make a mistake that could have some unfortunate consequences. Rather than learning everything through trial and error, use this quick beginner’s glossary to start learning! 

Convenient for First-Time Visitors 

At auctions, we use many terms that a beginner may need help recognizing. Note these words and their definitions, as they become more useful throughout the blog: 

As Seen / As Found: 

The lot the vendor is selling at auction comes with defects or errors present in or on them. “As found,” in particular, refers to hidden or difficult-to-see faults. 

Auctioneer: 

An auctioneer is the person who announces the lot number, specifies lot information, and determines the winning bidder. 

Bidding / Making a Bid: 

These terms refer to making an offer to buy a lot. As an auction beginner, never place a bid you don’t intend to pay. 

Bidding Number: 

Some auctions and auction houses give bidders a bidding number. Participants raise their bidding number to indicate their agreement to pay the amount the auctioneer calls out. 

Buyers Premium: 

Vendors usually pay the auctioneer a fee from the money gained by selling a lot. Some auction houses split the auctioneer commission with the buyer, which is the buyer’s premium. 

Catalog: 

A catalog is a list that shows the lots for the auction. Depending on the type of auction, it can look like a regular list on paper or designed with images or illustrations of each lot. 

Commission:

Auctioneers gain a commission fee from the lots they sell as one of the many ways they receive income. 

Commission Bid / On the Book: 

Some auction participants are absent in person. They can still participate if they fill out a form indicating their maximum bid amount for certain lots. Auctioneers often refer to these absentee bids as commission bids or “on the book.” 

Hammer Price: 

The hammer price is the winning offer for a lot at an auction. The auctioneers will not accept any other bids after the hammer. 

In the Room / Out Here: 

These terms mean that the highest bidder has outbid all commission bids and is at the auction in person. 

Lot and Lot Numbers: 

Lots refer to the items sold at the auction. A lot can be a single item or several items in a collection. Auction managers give each lot a specific number to differentiate them. 

Viewing Day: 

Some lots will have viewing days where auction participants can look closely at the items. Viewing day may happen the day before or hours before buying at auction. 

Quick Tips for a Good Auction Experience 

Aside from the different terms mentioned above, an auction beginner should also know a few etiquette and good practice tips: 

• Never bid on something you don’t intend to buy. If you win, you are legally obligated to purchase the item. 
• Pre-set your budget and stick to it. You will have to pay at the end, and many auction houses only accept cash or checks. 
• Research the auction house to determine their processes, such as how they accept payments or when you can receive your lot. 
• Arrive early to choose a comfortable seat for yourself. Early arrivals may also have time to view lots.

Ready to Attend Your First Auction? 

High Plains Auctioneers has an excellent place for you to start, auctioning fantastic pieces from old names and new break-in artists. You can check out our auction page to see upcoming events you can attend in and around Dalhart, TX. Call (806) 244-6776 for more auction beginner tips today.