If you’re unfamiliar with the auction environment, walking into the auction room for the first time can feel just short of foreign. The auctioneer speaks quickly – and when you can make out what he’s saying, he’s using words you’ve never heard before.
The auction world is one in which you really can’t get by without knowing the language. Whether you’re totally new to auctions or want to brush up on your existing knowledge, here’s a roundup of some of the words and phrases you’re most likely to run into at your first auction.
Your first auction can be confusing – make sure you learn the language beforehand!
Auctioneer: Responsible for the bidding portions of an auction, the auctioneer quickly announces the items up for auction and calls out the bids for each item – sort of like a narrator. The auctioneer also helps drive up enthusiasm in the bidders with energetic, sometimes nonsensical banter between individual bids.
Lead man: The lead man is the person who announces each item that is up for auction. The lead man precedes the auctioneer and announces items at a normal pace, usually accompanied by a picture of the item up for auction.
Ringmen: Ringmen help create the excitement in an auction. They exist to monitor what is going on during the bidding and make sure that each bid is heard and understood by the auctioneer and other staff members. They assist the auctioneer by yelling out when a bid is made by the crowd. They also help bidders new to the process understand how much they are bidding and what they are bidding on. Normally, there are two or three ringmen working during an auction.
Absolute auction: This can also be called an “auction without reserve.” In this sort of auction, items are sold to the highest bidder without a minimum price or reserve.
Reserve (price): This is the minimum price that a seller will accept for an item being sold at an auction.
As is: Refers to the condition of the item being sold. When an item is sold “as is,” the buyer takes responsibility for all existing problems with the item. Most auction houses sell their wares this way, as it protects them from fees and lawsuits – and usually makes for a lower price for the bidder.
Bid: A potential buyer’s offer for an item up for auction often indicated by holding up a sign or one’s hand. The auctioneer typically sets standardized bidding increments by which to increase the price as people bid up.
Backup Bidder: Refers to the person whose bid on an item, or “lot” is in second place behind the winning bidder.
Choice: Sometimes there may be many similar items in a specific auction, such as tables or lamps. Instead of bidding separately on each item, the auction house bundles these items together in a lot. Winning bidders choose from the lot of items, with the person who makes the highest bid getting the first choice of those items, then the back-up bidder will have the opportunity to choose an item for the same winning bid amount.
Choice is offered only when the auctioneer announces that the items will be sold in this manner.
Times the Money: This term is another auction time-saver: When there are several like items being sold, the lead man or auctioneers may announce that the bid will be “times the money”, which means you are bidding per single item, i.e. if you bid $100 and there are three items in the lot, your total bid price will be $300. The announced price reflects the value of a single item; the winning bidder buys all three and must pay three times the stated price in order to get the whole lot.
Hammer price: This is the winning bid amount – the last price acknowledged by the auctioneer before he drops the hammer (gavel) to signal the end of bidding.
Lot: Refers to each unit up for sale at the auction – whether it’s one individual object or a group of objects itemized as one unit.
Preview: A preview of the items is usually offered prior to the start of the auction. For items that cannot be transported to the auction house (usually real estate or large equipment), the auction house offers a preview – a specified date and time within which potential buyers can see and inspect the items prior to the auction.
Bidding in an auction when you’re new to the environment can be intimidating at first. The trick: listen carefully. Pay attention to the lead man and ringmen for guidance throughout the auction – and up your chances of going home with the items you want.
