Auction Terminology

If you’re new to auctions, we may sound like we’re speaking a foreign language.

Below are some standard terms, formats and strategy categories used frequently in the auction industry.

AUCTION FORMATS

• Single Seller/Stand-Alone:
  A single offering format for high profile properties or very specialized markets as well as properties that cannot be grouped with other offerings because of specific selling date or a lack of compatible auction properties in the area.
  
  
• Single Seller/Multiple Property (Portfolio Sale):
  This auction format allows multiple offerings at a single location and time, or at regional locations at different times, which can reduce overall marketing costs.
  
  
• Multiple Seller/Multiple Property Auction Format:
  Best applied to properties within a single geographical area or to similar properties spread across a large geographic area. Multiple sellers can pool their properties and resources to create a larger auction event of greater combined interest.

AUCTION TYPES:

Can be offered with any of the formats above.

• Open-Outcry:
  Bids are called as prospective buyers compete in their attempt to win the property in this fast-paced productive format.
  
  
• Sealed-Bid Offerings:
  Bids are submitted through pre-approved contract forms allowing the seller more flexibility to review offers when considering variables other than price.
  
  
• Convertible:
  Converting a Sealed Bid sale to an Open-Outcry sale or vice versa, during the marketing process.
  
  
• Online Bidding:
  Bidders from anywhere in the world can access the auction and bid to compete simultaneously for the same properties.

OFFERING STRATEGIES:

The following strategies can be presented with any of the above formats/types:

• Multi-Par Bidding:
  Popular for bidding on undeveloped land, multi-par bidding allows bidders to first bid on individual tracts of land within a larger land tract before bids are taken on the large land parcel in its entirety.
  
  During the second phase of multi-par bidding, the auctioneer offers various combinations of the smaller tracts. The last step of the auction takes bids on the large land parcel in its entirety.
  
  
• Without Reserve/Absolute:
  No required minimum bid. Highest bid accepted regardless of price.
  
  
• With Reserve:
  The auctioneer to ask the bidders to open the bid and the seller reserves the right to accept or reject the high bid.