ABSENTEE BID
A procedure that allows person to bid without being physically present. A bidder submits an offer on an item prior to the auction by filling out an absentee bidding form. The bidder indicates which items the bidder wants to bid on and the highest amount, or cut-off, that the bidder is willing to go. An auction staff member will bid for that item on behalf of the bidder up to the cut-off amount.
APPRAISAL
A written or oral statement, independently objectively and impartially prepared by a certified appraiser, prepared in accordance with generally accepted appraisal standards, setting forth an opinion of defined value of an adequately described asset, as of a specific date, supported by the presentation and analysis of relevant market information. Often used for insurance, tax or estate distribution purposes. Not to be confused with an estimate. For more information on appraisals, please go to Estimates and Appraisals
AS IS
Selling the property without warranties as to the condition and/or the fitness of the property for a particular use. Buyers are solely responsible for examining and judging the property for their own protection. Otherwise known as "As Is, Where Is" and "In its Present Condition."
AUCTION
A method of selling property, often separated into many items or lots sold in sequence, in a public forum through open and competitive bidding. Also known as “public auction” or “auction sale.”
AUCTION BLOCK
The podium or raised platform where the auctioneer stands while conducting the auction. "Placing (an item) on the auction block" means to sell something at auction.
AUCTIONEER
The person whom the seller engages to direct, conduct, or be responsible for a sale by auction. “Auctioneer” can mean the auction house in general or specifically the person who actually calls or “cries” the auction. The auctioneer is the representative of the seller and acts as seller’s agent, while the contract for sale is between the buyer (winning bidder) and the seller.
BID
A prospective buyer's indication or offer of a price they are willing to pay to purchase property at auction. Bids are usually in standardized increments established by the auctioneer.
BUYER’S PREMIUM
A percentage of the hammer price that is paid by the buyer which is added to the hammer price.
CATALOG OR BROCHURE
A publication advertising and describing the items available for sale at public auction, often including photographs, name of artists, mediums, property descriptions, condition reports, estimates and the terms and conditions of the sale.
CONDITION REPORT
A statement made by the auctioneer describing the physical condition of an item as well as any other condition of interest or that may affect the item’s value. The condition report is not a substitute for the buyer’s responsibility to conduct due diligence to research and inspect an item prior to bidding.
CONDITIONS OF SALE
The legal terms that govern the conduct of an auction, including acceptable methods of payment, terms, buyer's premiums, possession, reserves and any other limiting factors of an auction. Usually included in published advertisements or announced by the auctioneer prior to the start of the auction. Also known as “Terms & Conditions”.
COMPLETION OF SALE
The acceptance of the final bid for an item by the auctioneer at the fall of the hammer or gavel. Maine Law and the Uniform Commercial Code consider the auctioning of each lot to be a separate and distinct sale creating a contract between buyer (winning bidder) and seller.
CONSIGNMENT AGREEMENT
A contract executed by the auctioneer and the seller which authorizes the auctioneer to sell an item at auction and sets out the terms of the agreement and the rights and responsibilities of each party.
DISCOVERY SALE
A discovery sale is a sale of more modest works than those offered in the higher level fine art sale, and is seen as an affordable way for collectors, professionals, home owners and others to obtain quality original art for the residences, offices or for resale in a gallery or open market.
DUE DILIGENCE
The process of gathering information about the condition and legal status of an item. Due diligence is the sole responsibility of the bidder/buyer.
ESTIMATE
A price range from low to high at which an item is expected to sell at auction and published in the catalogue with other information about an item. Estimates are not price tags nor guarantees of value, rather our best approximation of an item’s auction value based upon market research to be used as guidelines by the buyer. Not to be confused with an appraisal.
FINE ART SALE
A fine art sale is a sale of the highest level and quality of art with values that may range in the five or six digits or above, and is the mainstay of Barridoff Auctions’ reputation and operations since the late 1970s.
HAMMER PRICE
The amount of the final bid of a lot accepted by the auctioneer, which is signaled by the auctioneer by the fall of the hammer or other announcement of the completion of sale on that lot.
ITEM
One piece of property or multiple pieces grouped as one piece of property for sale as one lot in an auction.
LIVE AUCTION
An auction held in real time in which live bidding is conducted by bidders present at the auction, on the telephone, on-line and by absentee.
LOT
An item in an auction, usually assigned a number to identify it and indicating its order of sequence in the auction. The sale of each lot is considered its own unique and separate sale binding the seller and buyer in contract pursuant to the Uniform Commercial Code.
MARKET VALUE
The highest price that a property will bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.
ONLINE AUCTION
An auction held solely online with no bidders physically present and may be conducted real time or in a timed format.
OPENING BID
The first bid offered by a bidder or by the auctioneer for an item at an auction.
PREVIEW
Specified date and time when items are available for viewing and inspection by prospective buyers. Also known as “Open House” or “Inspection”.
PURCHASE PRICE
The total amount for an item owed by the buyer that includes the hammer price and buyer’s premium and which is subject to sales tax, if applicable.
RESERVE
The minimum bid price for an item in a reserve auction under which the seller may refuse a sale of that item. The reserve is generally not public knowledge but known only to the seller and auctioneer. Also known as the “reserve price.”
SELLER
Person or entity that has legal possession and ownership of any interests, benefits or rights inherent to an item and who enters a consignment agreement with the auctioneer.
SELLER’S COMMISSION
The fee charged the seller by the auctioneer for providing services set as a percentage of the hammer price of a sold item of the consignor established by contract (the consignment agreement) prior to the auction.
TIE BIDS
When two or more bidders bid exactly the same amount at the same time. This must be resolved by the auctioneer.
TIMED AUCTION
An online auction conducted over a period of time where bids are accepted and items may be purchased immediately by paying an amount higher than the present highest bid.
WITHDRAWAL
The right of the seller to terminate a sale at any time during an auction prior to reaching the reserve price.
WITH RESERVE
An auction where the seller has the right to establish a minimum reserve price, to accept or reject any bid and to withdraw the property at any time prior to the completion of sale. See also “Reserve.”
WITHOUT RESERVE
An auction where there is no minimum opening bid or other condition that limits the sale to the highest bidder and the seller may not modify or nullify the sale by bidding either personally or through a representative or withdrawing the item.
