Common Auction Terminology
Understanding auction terminology helps you participate confidently. This glossary covers the most common terms you'll encounter at equipment auctions, from bidding procedures to payment processes.
Equipment Auction Terms
Bidding Terms
Absentee Bid: A bid placed before the auction by someone who cannot attend. Reserve Price: The minimum price a seller will accept. Buyer's Premium: An additional fee added to the winning bid. Opening Bid: The starting bid amount set by the auctioneer.
Auction Types
Absolute Auction: Sale with no minimum price—highest bid wins regardless of amount. Reserve Auction: Sale with a minimum price that must be met. Simulcast: An auction conducted live with simultaneous online bidding. Timed Auction: Online auction with set start and end times.
Transaction Terms
As-Is: Equipment sold in current condition without warranty. Bill of Sale: Document transferring ownership. Settlement: The process of finalizing payment and transfer after auction. Title: Legal document proving ownership of equipment.
Frequently Asked Questions
What does 'sold as-is' mean?
Sold as-is means equipment is sold in its current condition without any warranty or guarantee. Buyers accept full responsibility for the equipment's condition upon purchase.
What's the difference between reserve and absolute auctions?
In an absolute auction, the highest bid wins regardless of price. In a reserve auction, the seller sets a minimum price that must be met for the sale to proceed.