Entering the thrilling world of auctions can be an exhilarating experience. You’ll find that it often comes with its own language. Auction houses have their own terminology and jargon. To bid confidently in this lively atmosphere, you’ll likely want to become familiar with these words and phrases that are commonly used.
Auctioneer’s Chant: The Rhythmic Heartbeat of the Auction
At the forefront of any live auction is the auctioneer, often recognized by their rhythmic and rapid-fire delivery known as the auctioneer’s chant. This distinctive style of vocalization is not just for show; it serves to keep the pace and energy high while signaling bids from potential buyers.
Reserve Price: The Hidden Threshold
“Reserve Price” will certainly be among the jargon spoken at an auction. The reserve price is the minimum amount a seller is willing to accept for an item. It is typically not disclosed to bidders and ensures that an item won’t be sold for less than the seller’s acceptable price.
Hammer Price: The Winning Bid Amount
When the auctioneer declares an item “sold” and brings the gavel down, the final bid amount is called the hammer price. This is the winning bid that the buyer is obligated to pay.
Buyer’s Premium: The Added Cost for Successful Bidders
Buyer’s premium is an additional percentage fee added to the hammer price. It’s essentially the buyer’s contribution to covering the auction house’s operating costs and is usually expressed as a percentage of the final bid. It’s important that any potential buyer understands this terminology so he or she knows exactly what price they will be paying for a desired item.
Lot: A Bundle of Joy (or Items)
A lot is a group of items offered for sale as a single unit. Auction houses organize items into lots, making it easier for bidders to bid on multiple items at once.
Absentee Bid: Bidding Without Being Present
If you can’t make it to the live auction, you can submit an absentee bid. This is a maximum bid amount that the auctioneer will represent on your behalf during the auction.
Reserve Met: Crossing the Threshold
When the bidding reaches or exceeds the reserve price set by the seller, the auctioneer will announce that the reserve has been met. This signifies that the item will be sold to the highest bidder.
Appraisal: Evaluating the Worth of Items
Before items go up for auction, they are often appraised to determine their value. Appraisals can be conducted by in-house experts or external professionals. This process allows sellers to understand the value of the items they are selling as well as buyers to understand the value of what they’re attaining.
Knock Down: The Final Act
When the auctioneer declares an item sold, it’s referred to as “knocking down” the item. This action concludes the bidding for that particular lot.
Catalog: The Auction Playbill
The catalog is a detailed listing of all the items available in the auction. It provides descriptions, images, and essential details about each lot.
Paddle: The Bidder’s Badge of Honor
Bidders use a paddle to signal their bids. A paddle is a numbered card or sign unique to each bidder. Raising the paddle indicates a bid. The auctioneer acknowledges the winning bidder by noting their paddle number.
Reserve Not Met: Falling Short of Expectations
If bidding fails to reach the seller’s reserve price, the item is labeled as “reserve not met.” If this occurs, the item remains unsold.
Condition Report: A Sneak Peek Inside the Box
A condition report provides information about the physical state of an item. It may include information that could influence a bidder’s decision. Details often include information on wear, damage, age, and more.
Withdrawal: The Auction’s Exit Door
If circumstances change or an issue arises, an item may be withdrawn from the auction. Therefore, it will not be available for bidding.
Arming yourself with a good understanding of auction jargon is like unlocking the secret code to an exciting world of bidding and collecting. Whether you’re a seasoned auction-goer or a first-time participant, knowing the language of the auction house will enhance your experience and help you navigate the lively atmosphere with confidence. Happy bidding!