Ten of the most common terms you will encounter, in alphabetical order. Bookmark this page.
A procedure which allows a bidder to participate in the bidding process without being physically present. Generally, a bidder submits an offer on a property prior to the auction. Absentee bids are usually handled under an established set of guidelines by the auctioneer or their representative. The particular rules and procedures for absentee bids are unique to each auction company.
A person (or entity) who does not attend the sale but submits, in advance, a written or oral bid that is the top price he or she will pay for a given property.
"As-Is"
Also: As-Is, Where-Is · In Its Present Condition
Selling the property without warranties as to the condition and/or fitness of the property for a particular use. Buyers are solely responsible for examining and judging the property for their own protection. Also known as as-is, where-is and in its present condition.
A method of selling real estate in a public forum through open and competitive bidding.
Bidder Package
Also: Bidder Packet · Due Diligence Package
The package of information and instructions pertaining to the property to be sold at an auction event, obtained by prospective bidders prior to the auction. It typically includes disclosures, plats, photos, survey reports, auction terms and conditions, and other property information a bidder needs to complete due diligence.
An arrangement for third-party brokers to register potential bidders for properties being sold at auction, for a commission paid by the owner of the property or the auction firm. Prestige is broker-friendly and welcomes broker participation.
An advertised percentage of the high bid, or a flat fee, added to the high bid to determine the total contract price to be paid by the buyer. The buyer's premium is disclosed in advance so there are no surprises at closing.
The fee charged to the seller by the auctioneer for providing services, usually a percentage of the gross selling price of the property, established by contract (the listing agreement) prior to the auction.
The process of gathering information about the condition and legal status of assets to be sold. In real estate auctions, buyers complete their due diligence before auction day since sales are non-contingent.
The printed rules of the auction and certain aspects of the Purchase & Sale Agreement that are read and/or distributed to potential bidders prior to an auction sale.
